Key Concepts: Demand, Supply, Market Equilibrium: Combining Supply and Demand, Case Study: Using the Supply and Demand Model, Elasticity of Demand and Supply

E*TRADE

Enter "MSFT" for Microsoft Corporation or "Yhoo" for Yahoo! in the "Quotes" box and review the Quote information for the selected stock.

• What factors "determine" your decision to purchase (demand) or sell (supply) any given stocks?
• Explain how some traders might try to use the bid size and ask size to measure impending short term upward or downward pressure on the stock's price.
• Review the 1 or 3 month "Chart" (e.g. price movement) and "News" information for the selected stock. Identify specific news that may have "shifted" its demand or supply curve.

Hollywood Star Exchange

Review the home page information and select the "movies" link. Examine the current "box office" information at the bottom of the screen.

• Identify potential factors that may determine the current value or Hollywood Price (H$) for selected movies.
• Why do movie studios spend millions of dollars on advertising prior to the opening of their movies?