Demand Tutorial Instructions
Construct a Demand tutorial using Microsoft Excel. The tutorial should demonstrate the changes
in quantity demanded and changes in demand for a market demand curve estimated from actual
data. The assignment should give you the opportunity to review and understand the theoretical
relationships underlying the demand curves. In addition, the exercise will require a review of
statistics particularly regression, and develop facility with Excel.
1. Construct a theoretic demand model for a commodity of your choice. Make a list of the
necessary variables (dependent and independent), and the expected relationship between each
independent variable and the dependent variable. Tip: Only try to estimate models where data is
available. It does little good to theorize about toothpaste if you cannot find data on toothpaste. Start
with an idea that has a chance of working...peruse the available data.. Tip: Price data is harder to
come by than quantities. If you have prices you can usually get quantities, but quantities may not be
associated with prices. Pick prices first
2. Attempt to estimate the theoretical model using the data from the
2a. collect the relevant data
Here are some places to start (focus on prices) read the READ ME files!
Fruit and Tree Nut Yearbook
http://usda.mannlib.cornell.edu/data-sets/specialty/89022/
Spreadsheet Files
http://usda.mannlib.cornell.edu/data-sets/specialty/89011/
Vegetables and Melons Yearbook
(89011)
http://www.ers.usda.gov/data/sdp/view.asp?f=food/89015/
Food Consumption, Prices and
Expenditures (89015)
2.b. Once you have established your data set, estimate the demand relationship and evaluate your
success. Was the necessary data available? What variables were missing? Are the signs correct?
Are the results significant? Include this information (including your explanation of the theoretical
model) in text boxes in the final product. Explanations should be error free.
3. Use the data and the resulting model to construct a tutorial for demand using excel. The tutorial
should demonstrate how demand would shift when there is a change in one or more of the
independent variables.
Submit both hard and electronic versions of your analysis. Both versions of submission should be
free of grammatical and typographical errors and have a professional appearance
Your evaluation will be based on the following:



Completeness of the theoretical model, with appropriate expectations
Accurate evaluation of results.
An attractive, working tutorial. (The tutorial should work according to your statistical
results, not necessarily according to the theory, unless the theory and results match)
Each of the above bullets should correspond to a separate sheet in your workbook.
Name___________ Tutorial Evaluation rubric
Component
A
B
Theoretical
All necessary
Incomplete list
Demand
variables
or description
Model
(dependent and of necessary
independent),
variables. The
are adequetly
expected
described and
relationship
the expected
between each
relationship
independent
between each
variable and
independent
the dependent
variable and
variable is
the dependent
stated and
variable is
supported by
clearly stated
standard
and supported demand theory
by standard
demand theory
Data
Data collected Some readily
Collection
is the
available
appropriate to
variables were
the problem,
not collected
no obvious
missing
variables
Model
Model reflects Some
Estimation
the appropriate inappropriate
choice of
independent
independent
variables
and dependent
variables.
Evaluation of Evaluation is
Evaluation is
regression
clear and
clear and
identifies all
identifies all
problems with problems with
signs and or
signs but not
statistical
with statistical
significance
significance
The tutorial
The tutorial
The tutorial
functions
functions
does not
according to
according to
function
the model, is
the model but
according to
attractive and
is unattractive the model, and
clearly shows or does not
is unattractive
the shifts in
clearly show
…
the curve
the curve
when
shifting.
variables
change.
C
Incomplete list
or description
of necessary
variables. The
expected
relationship
between each
independent
variable and
the dependent
variable is not
clearly stated
or supported
by standard
demand theory
D
F
Incomplete or No Theory
incorrect list of
variables no
theoretical
relationship.
Only the bare
minimum
requirement of
variables was
collected
Less than the
minimum
number of
variables was
collected
No data
Inappropriate
dependent
variable
Inappropriate
independent
and dependent
variables
No model
Evaluation
does not
identify all
problems with
signs or
statistical
significance
The tutorial
does not
function.
Little
evaluation of
signs or
significance
No
evaluation
No tutorial