Illustrate the following with supply and demand curves: In March 2015, hogs in the United States were selling for 81 cents per pound, up from 58 cents per pound a year before. This was due primarily to the fact that supply had decreased during the period. Show this change in the figure on the right.

1.) Using the point drawing tool, locate the equilibrium point for 2015 in the U.S. hog market. Label your point 'E'.

2.) Using the line drawingtool, illustrate the change in the U.S. hog market between 2014 and 2015. Properly label your line 'S2015'. (Hint: Perform the steps in the order given.) Carefully follow the instructions above and only draw the required objects.

This case is about graphically describing the relationship between supply and demand in a market. As can be seen, the point of intersection between supply and demand is the equilibrium point of the system, and this varies according to supply and demand. In this case, supply has decreased in 2015 compared to 2014, which causes the price to rise from $0.58 to $0.85 while the number of units sold decreases.

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