Supply and Demand Curve: Shifts and Movements
Demand is, in basic terms, that quantity of a certain product/good that consumers are able and willing to buy/purchase at the prevailing price (Hirschey, 2008). A product's market demand function relates its aggregate quantity demanded to the various parameters, including price, that influence the said quantity (Hirschey, 2008). The demand curve is an expression of "the relation between the price charged for a product and the quantity demanded, holding constant the effects of all other variables" (Hirschey, 2008, p. 137). When it comes to supply, the term according to Hirschey refers to the quantity of a product that sellers are able and willing to bring to the market, under the prevailing economic conditions (Hirschey, 2008). A supply curve, therefore, is an expression of the relation between the quantity supplied and the price charged, ceteris paribus (Taylor & Weerapana, 2011). Equilibrium is achieved "when the…...
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References
Hirschey, M. (2008). Fundamentals of Managerial Economics (6th ed.). Mason, OH: Cengage
Learning.
Taylor, J. & Weerapana, A. (2011). Principles of Economics (7th ed.). Mason, OH: Cengage
This means that the demand increase will produce an increase in supply at a controlled rate.
d. How can you apply what you learned about the concepts of supply and demand from the simulation to your workplace?
The simulation sheds particular light on the idea of adjusting pricing structure according to apparent market demand. This is useful to any workplace. In my case, the notion that large-scale external changes in the marketplace might bring about the need to make internal decisions within an organization seem particularly applicable. The simulation describes a scenario in which a company called Lintech makes its new home in Atlantis, bringing with it a boom in residency. The importance for a company such as Goodlife of preempting this infusion by increasing both price and supply is tantamount to accommodating rising demand. This is a scenario which applies to any organizational decision-making scheme predicated by market behaviors.
Supply and Demand, Market Equilibrium and Price Elasticity
There are a number of factors that can affect the levels of supply and demand, which are closely related. Price is one of the main things that affects supply. If the price of something is higher, there will be less of a supply as it will cost more to obtain it. There will also eventually be less of a demand for the product, as people who are purchasing the item will be less willing to buy it if the cost is high. Although there may be other factors that affect supply and demand, price is one of the most apparent. It is price that affects supply and demand most of all.
Market price is the price that is set when supply and demand interact. Market equilibrium, which is also known as equilibrium price, is the price that is the result of the quantity of…...
Supply and Demand and Its Impact Upon Pricing in the Funeral Industry
One might be tempted to assume that the certainty of death, given that it happens on a fairly regular basis every year, ensures that the funeral industry is a fairly stable industry, and its pricing structures are thus immune to consumer whims and shifts in supply and demand. However, because a luxurious funeral is not strictly a necessity, this means that the pricing structure of the industry is often impacted by outside forces, such as a decline in living consumer's family incomes as well as shifts in informational technology as well as overall economic growth. According to Richard illing, in his article about how traditional "Funeral homes fight for life," prices in the industry are becoming increasingly elastic, or subject to competition and the living consumer's desires regarding elaborate or simple funerals, and thus demand can shift more wildly…...
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Works Cited
Willing, Richard (10 Oct 1999) "Funeral homes fight for life." USA Today.
Supply and Demand Simulation
There are several factors that may affect the demand and supply curves and shift them to the right or to the left accordingly, with the respective consequences.
If we look at the demand curve first, perhaps the most important factor that causes a shift is the customers' preference or taste. For example, we may consider wheat as a product. The customers decide that wheat is not as healthy as rye and will begin to buy more rye bread than white wheat bread. In this case, the aggregate demand curve for wheat will suffer a shift leftwards. The consequences are that the equilibrium price, on a given supply curve will be lower than previously. Hence, a wheat producer or a company that commercializes wheat will probably lower its prices in order to regain some of the market share that has been lost due to consumer taste. Other factors that…...
Supply and Demand Issues
How do changes in supply and demand effect oil prices? In general, prices of crude oil behave in a similar way to most other commodities that have global demand. There are wide price swings during shortages (artificial or real) or oversupply; large swings in the graphs that show price relationships and dramatic and rather unpredictable pricing seemingly out of control from the consumer. Demand, in particularly is a major factor on supply -- with China and India vying for more and more crude oil because of their growing economies, their demand continues to skew the curve. Similarly, many oil rich nations have exhibited supply issues because of war (Iraq) or political problems (Venezuela). Thus, more demand, lower supply means higher prices.
Part 2 -- Which two countries are the largest consumers of petroleum products? The United States (#1) and China (#2).
Supply and Demand Analysis of McDonald's
In this text, I examine the demand as well as supply of one of McDonald's products. Most particularly, I describe the various things that would lead to a change in the demand as well as supply of the product produced in this case. Further, in addition to highlighting the effects of minimum wages on McDonald's, I also outline some pros and cons of price controls.
For ease of analysis, I concern myself with only one of the products offered for sale by McDonald's i.e. A chicken sandwich. Several things would change the demand for chicken sandwich offered for sale by McDonald's. To begin with, the demand for chicken sandwich could be determined by buyer numbers. As Tucker (2010) points out, population growth can bring about an increase in buyer numbers. For instance, if a certain city experiences a sudden growth in population, the various McDonald's restaurants…...
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References
Carbaugh, R.J. (2010). Contemporary Economics: An Applications Approach (6th ed.). New York: M.E. Sharpe.
The current supply and demand curve for nurses in the healthcare profession are and interesting example of a somewhat skewed market equilibrium. Although the market is currently in equilibrium, it is projected that demand will exceed supply in the near future. The United States is projected to have a nursing shortage that is expected to intensify as baby boomers age and the need for health care grows. Compounding the problem is the fact that nursing colleges and universities across the country are struggling to expand enrollment levels to meet the rising demand for nursing care (Rosseter, 2012). "It's a double whammy -- we can't get enough nurses, or the faculty to train them," says Sarah Keating, a nursing professor at the University of Nevada, Reno, "It's so tough when you see these folks coming through and they do so well on the interviews and we have to…...
Goodin, H. (2003, July 25). The nursing shortage in the United States of America: an integrative review of the literature. Journal of Advanced Nursing, 335-343. Retrieved from Journal of Advanced Nursing.
HRSA. (2002). Projected Supply, Demand, and Shortages of Registered Nurses. U.S. Department of Health and Human Services, 1-22.
.." He should be more committed to this change. It is for him to decide how to manage the change within his department, though he may need help. At this point, he may need more convincing that this change is needed to keep the company competitive. Mary Jo Moran needs to work with him on a plan to identify the current status of knowledge within his department and to identify possible mentors for training first, which should probably include Mr. Theron, in spite of his experience.
Mary Jo's knowledge of the people within the company and her background are going to be important all through this process. Regular brainstorming sessions which include her and all the major stakeholders, including the CEO, will help to keep communications lines open and to implement problem identification and trouble-shooting in a timely manner.
Strategies to Address Key Stakeholder Perceptions: Develop a clear strategy to address each…...
asic economic risk management instruments, such as hedging, were simply not used, because the confidence was uncontrollably high and investors never believed that prices would go down or that credits would become more expensive.
The important issue is whether or not the economy is following a recession at this moment and, especially, if the stock market is currently bearish as much as it was bullish in the past years. The article "5 ways to know if the bull is over" concentrates on clarifying these aspects and on identifying the traces that a bear market would leave in the current market situation.
According to the article, the first signs that a bull market is over includes lower consumer spending, concerns about the subprime mortgage loans etc. This is currently the case in the present and the stock market is keen to capitalize on all of these. Indeed, the Dow Jones index has…...
Supply Demand
Supply, Demand, Oil and the U.S. Economy
Few forces have a greater or more direct impact on the U.S. economy than the global oil trade. The industrial expansion of the American way of life has been largely dependent on an ever-greater consumption of gasoline, the vast majority of which must be imported from other nations. The result is a tumultuous history of oil trade both in terms of economics and the political and military conflicts that often accompany these economics. For the U.S., the increasingly tricky balance of oil supply and demand has had and will continue to have an increasingly profound impact on our economic affairs. Indeed, as recent headlines show, there is a close correlation between such dimensions of the U.S. economy as its continued economic stimulus program and the supply and demand of oil on the global market.
The recent article by Gorondi & Sampson (2013) underscores this…...
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Works Cited:
Ahmed, N. (2013). Peak Oil Lives, But Will Kill the Economy. The Guardian.
Gorondi, P. & Sampson, P. (2013). Oil rises sharply as Fed maintains stimulus program, U.S. oil supplies drop more than expected. The Washington Post.
Sampson, P. et al. (2013). Oil Rises on U.S. Supply, Economic Data. Rigzone.
Stonebraker, R.J. (2013). Demand and Supply Applied: Oil Prices. The Joy of Economics.
For example, new competing technology called an eventual fall in demand of video cassettes and an eventual reduction of the supply as a new equilibrium was reached. Now there are only a few VHS players and cassettes remaining on the market, while the amount of TiVo and DVR users has exponentially increased. But this took time as people replaced their systems and converted their libraries from one medium to the new medium.
The demand for some goods is more responsive to changes in prices than other goods. For example, food as a whole might seem like a very inelastic good -- people have to eat. But because there are so many substitute goods for a meal, within the category of food price is often very elastic -- consumers will respond to an increase in the price of restaurant meals by cooking at home.
The degree to which the supply curve can…...
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Works Cited
Economics basics: supply and demand. (2009). Investopedia.
The other impact is that, the quantity of sugar that is traded will rise, however the price will depend on the fall caused by subsidy enabling people to switch away from the sweetness of sugar. The chances that might arise is that, the price of the sugar will end up getting lower and lower than the pre-subsidy level.
Discussing how, ceteris paribus, would affect the market for coffee
If coffee is shown to cause cancer in laboratory rats, the consumers who take coffee will avoid taking coffee in their entire life. Because of that, the supply of the coffee will still increase, however the demand for the coffee will decrease making prices to be cheap.
If blight on coffee plants kills the Brazilian crop, the supply of coffee will without doubt fall causing the price to increase.
Gaining of higher wages by the coffee workers will force the price of coffee to increase…...
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References
Norcross, E. (2013). Rent Control is the Real New York Scandal - WSJ.com. The Wall Street Journal - Breaking News, Business, Financial and Economic News, World News & Video - Wall Street Journal - Wsj.com. Retrieved February 8, 2013, from http://online.wsj.com/article/SB122126309241530485.html
S. economy. Evers points out that gas prices ebb and flow in accordance with the law of supply and demand. Gas prices are higher because supply is limited and demand is higher. More people are concerned with gasoline because more people have cars to fill up. There is equilibrium between demanded and supplied gas. The proof of this can be found in the fact that there are not very long lines at gas stations, and there is not a gasoline shortage (Evers).
If the government were to step in and set a price ceiling on gas, people would buy more gas. This is according to a basic economic rule called the price effect (Evers). Suppliers of gasoline would react to this by providing less amounts of gasoline, and a shortage would result. Evers says it very well when she says that "Tampering with gas prices will result in price setting, shortages,…...
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Works Cited
Boyes, William and Michael Melvin. Microeconomics. Cincinatti, OH: SouthWestern
College Publishing, 2004. Print.
Central Intelligence Agency. United States of America. 5 Oct 2009. Web. 4 April 2010.
Colander, David C. Microeconomics. Columbus, OH: McGraw-Hill, 2008. Print.
1. The impact of supply and demand on interest rates in HSBC Bank 2. The role of elasticity in determining pricing strategies in HSBC Bank 3. The concept of opportunity cost in investment decisions at HSBC Bank 4. The influence of market structure on competition and pricing in HSBC Bank 5. The effects of government regulation on the banking industry and HSBC Bank specifically 6. The relationship between marginal utility and consumer behavior in the banking sector, with a focus on HSBC Bank 7. The concept of economies of scale and how it applies to HSBC Bank's operations and growth strategies 8. The principles of cost-benefit analysis....
Drug Trafficking in Italy: A Complex and Evolving Problem
Introduction
Italy, located at the crossroads of the Mediterranean Sea, has long been a strategic transit route for drug trafficking from producing countries to consumer markets in Northern Europe and beyond. In recent years, the country has faced significant challenges in combating drug trafficking, with organized crime groups playing a major role in the illicit trade. This essay will explore the current state of drug trafficking in Italy, examining its impact on society, the efforts of law enforcement to combat it, and the need for comprehensive strategies to address this complex problem.
Cinnamon is a highly valuable spice with increasing global demand. Its versatility in culinary, medicinal, and aromatic applications has led to a growing export market. Cinnamon production is concentrated in a few countries, with Sri Lanka and Indonesia being the ?????? exporters. Other producers include Vietnam, China, and India. Cinnamon export management systems vary significantly between countries. Some countries have well-organized and efficient systems, while others face challenges in meeting international standards and ensuring traceability. Key elements of successful cinnamon export management systems include: Effective quality control and grading Traceability systems to track cinnamon from farm to market ....
In a market economy, the forces of supply and demand play a crucial role in determining prices and quantities of goods and services exchanged. When the government intervenes by imposing a new tax on a specific market, such as the commercial office property market, it can have significant implications on the equilibrium price and quantity. By analyzing the situation through the use of supply and demand curves, we can understand how the market will react to the imposition of a 10% property tax on all commercial office property buyers. This essay will delve into the dynamics of the market and....
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