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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…… [Read More]
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.…… [Read More]
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…… [Read More]
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…… [Read More]
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…… [Read More]
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).
Part 3 -- Explain what…… [Read More]
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…… [Read More]
Supply and Demand
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…… [Read More]
.." 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…… [Read More]
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…… [Read More]
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…… [Read More]
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…… [Read More]
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…… [Read More]
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,…… [Read More]
Frozen Food Demand
Compute the elasticity's for each independent variable. Note: Write down all of your calculations.
Elasticity= % change in quantity demanded / % change in independent variable
Price in cents
Price of comp. In cents
Number of Microwaves
1% Change in Price
Price in cents
Price of comp. In cents
Number of Microwaves
Percentage Change in QD=
Percentage Change in Price
Elasticity = % change in QD/
% change in price
1% Change in Price of Comp.
Price in cents
Price of comp. In cents
Number of Microwaves
Percentage Change in QD=
Percentage Change in Price
Elasticity = % change in QD/
% change…… [Read More]
supply and demand curve, why Argentina had to give up fixed exchange rate in 2001
Demand and supply are normally directly proportional which means as demand of a product increases, its supply normally increases too. In the case of Argentina which had fixed exchange rate till 2001 but had to give that up, demand and supply principles came into play in different ways. For one, we must understand how demand of anything would affect exchange rate. When Argentina's economy was prospering and its products were in high demand, it was primarily because of those products were cheaper for other markets. However as soon as the demand reached a certain point, fear of overvaluation of currency also emerged which means that when it was felt that Argentina products were becoming expensive in the foreign markets not because the prices had been changed but mainly because of overvaluation of its currency, the…… [Read More]
upply and Demand Determines Market Prices
This paper will explain the meanings of the following terms: supply, demand, market price, equilibrium, and market clearing price. This paper will then go on to explain how supply and demand determines market prices.
A person or company who is selling a product(s) and/or service(s) has a "supply" of products or services. Consumers, the people who are going to purchase the product(s) or service(s), have a "demand," which is a need or want, of the products or services.
An exchange of goods or services will occur whenever consumers and sellers agree on a "price, which is how much something costs. The agreed upon price is call the equilibrium price" (upply and demand par 1). It is named that because "equilibrium" is when supply equals demand. Another name for equilibrium price is "market clearing price" (par 1).
A market price is not fair to all…… [Read More]
Supply and demand of Auntie Anne's hand-rolled pretzels
Supply and demand of Auntie Anne's hand-rolled pretzels
What are some things that would change the demand for your product?
Demand for food, particularly non-necessary food items, can be extremely volatile. When the economy sours, consumers frequently cut back on eating out. Soft pretzels decidedly fall into the category of 'treat' food. However, many fast food restaurants may see improved sales during a recession, as customers that would traditionally dine at mid-priced convenience food restaurants like Applebee's shift their buying habits to lower-end restaurants. Bur Auntie Anne's serves a limited array of meal-type items, and customers might simply buy pretzels in the supermarket to cut costs. Tastes can also change, like the low-carb craze hampered sales for Krispy Kreme doughnuts. The new gluten-free craze could likewise inhibit demand for pretzels that contain wheat.
How does quantity demanded change?
Many Auntie Anne…… [Read More]
The following diagram shows an increase in aggregate demand that exceeds an increase in short run aggregate supply and long run aggregate supply, increasing the price level.
On the demand side, the demand for gasoline appears to be price inelastic as indicated that demand is still increasing even though prices are rising. The price elasticity of demand measures the rate of response of quantity demanded due to a price change. The formula
(%?Q d)/(%?P) is used to calculate the price elasticity of demand. Quantity demanded is price insensitive (inelastic) when %?Qd < %?P, indicating that a price change causes less of a corresponding change in quantity demanded. This price is inelastic because, in the short-term, consumers have not found an effective way to conserve energy' consumers need gasoline and there are few substitutes.
A tariff is a tax on foreign goods. In the ethanol example, the American tariff is of…… [Read More]
Even in consumer’s everyday lives, the principles of economics are evident. This can be seen in the current state of the coffee market, as the beverage grows more ubiquitous worldwide, even in traditional tea-drinking nations such as China, Japan, and India, and more and more consumers in America are willing to pay premium prices for the product. According to a 2016 article in Forbes by Laura Lorenzetti, although world demand for coffee is on the rise, Americans are still driving the trend. Coffee consumption has increased and thus prices for the beverage have increased, as suppliers can command a higher price for their product. Coffee production itself has also been hard-hit by bad harvest in critical production areas such as Brazil. Coupled with physically curtailed demand and the willingness of consumers to pay more, prices have seen a corresponding increase.
Under most circumstances, producers will increase production if they know…… [Read More]
Supply and Demand for Labor as it elates to the Minimum Wage
One of the most controversial issues in politics today revolves around the question of setting the minimum wage. Opponents argue that the market should set wage levels and if the minimum wage is too high, prices go up and consumption is discouraged. Proponents of raising the minimum wage stress the social injustice of low minimum wages but also point out that consumers who receive low wages have less money to spend and traditionally low wage workers spend a larger proportion of their salary than wealthier individuals. aising the minimum wage could thus boost the performance of the economy.
In Jared Bernstein's recent article "The economics of a higher wage floor" from The New York Times, the author points out how there is a growing grass roots movement amongst fast food service workers to increase their minimum wage and…… [Read More]
22nd of April 2014 in the Wall Street Journal, it is reported that the prices for oil futures are showing a significant decline (Friedman, 2014). Contracts are quoted as falling by 2.2% for the May settlement contracts and 1.8% for the June settlement contracts (Friedman, 2014). It is noted that the prices for the oil futures contracts have fallen ahead of the release of .S. Energy Information Administration regarding the level of domestic oil reserves. The falls are believed to reflect the expected announcement that the reserves are at a significant increase in the level of the oil reserves (Friedman, 2014). In a survey 8 out of 10 analysts surveyed indicating they expected the level of reserves to rise (Friedman, 2014). It is stated that on April 11th the oil reserves were only 3.4 million barrels below the peak which was seen in May 2013, and that it was expected…… [Read More]
The airline industry is subject to a somewhat unique supply-demand curve, and it results in an unorthodox approach to pricing that takes into account a wide range of variables. Airline flights are a perishable good, so the price changes in relation to time. In addition, supply is sticky, because airlines cannot simply cut and gain access to landing rights easily. They must instead make supply decisions periodically, evaluating routes and flight times in the context of market opportunity as well as opportunity cost. Fixed costs are highly variable, especially fuel costs, and this affects pricing as well. Additionally, pricing of ancillary services such as luggage, food and other items sold to passengers factors into the ticket price. Another factor is that of substitutability, especially on medium-haul routes where driving or rail constitutes a viable substitute. Lastly, the strategy of the airline must be taken into account. Southwest, for example,…… [Read More]
Demand vs. Supply
Supply vs. Demand: Nursing Shortage
The shortage of nurses in this country is caused by a simple economic principle -- supply and demand. riefly, the demand for skilled registered nurses is greater than the supply. This may sound simple, but in reality there are many factors that contribute to the nursing shortage in today's health care industry.
Statistics from The National Council of State oards of Nursing tells us that there has actually been an increase in the number of trained nurses over the past ten years. In 2000, there were 71,475 newly certified nurses. In 2005 there were 99,187. In 2010, there were 134,708 newly certified nurses. This is a 9.8% increase during the past decade. And the demand for nurses is actually expected to be lower than the amount of nurses being newly certified. According to the U.S. ureau of Labor Statistics, the annual growth…… [Read More]
Gasoline, similar to any other commodity in the marketplace, is influenced by the forces of demand and supply. In turn, this impacts the quantity amount of the commodity that is demanded and supplied to the consumers. The following discussion will encompass the gas prices of gasoline per gallon in ten different gas stations. Thereafter, the theory of demand and supply will be utilized to ascertain the change in prices and the new prices to be set in a new market.
The following are 10 gas stations in your local area with a record of the price per gallon for each gas station.
Price per Gallon
Catt-Rez Enterprises Inc. 10910 Erie Rd & Lakeshore Rd
Big Indian Smoke Shop 597 Milestrip Rd near Farnham Rd
Wolf's Run 12795 Four Mile Level Rd near Iroquois Dr.
Signals 11024 Southwestern Blvd near Brant Farnham Rd
Heron's Landing 11186 Southwestern Blvd near…… [Read More]
Market of Grain in the United States
In the United States, millions of Americans are confronting the latest trends in the commodities markets where the costs of agricultural products have driven up costs of breakfasts of average Americans. Over the past year, the price of orange juice has increased a quarter, and the price of milk has also risen by 5%, and egg by a fifth. The issues have made General Mills and Kellogg's to increase the prices of their breakfast cereal products. The cause of an increase is due to a recent rise in the price of grains such as wheat and corn. Underpinning the rise in the price of grains is that the demand has outpaced the supply because of the growing demand for cereals for the production of biofuels such as ethanol. Thus, the author is trying to reveal the factors that lead to an increase in…… [Read More]
Marketing, Supply and Equilibrium: Head and Shoulders by Proctor and Gamble
The Head and Shoulders product of Proctor and Gamble is price inelastic for those who have brand loyalty and will buy the product no matter what the price is. For those who like the product but will go with a cheaper off-brand if the option is available, so long as the off-brand is as effective, will do so causing the product to be price elastic for this group of people.
Two non-price factors that impact the demand of Head and Shoulders are quality of the product and marketing of the product. Quality (effectiveness of the shampoo to stop dandruff) is the number one reason it is purchased, as it is a specialty shampoo that is used for this explicit purpose. If the quality is high, the demand increases. Marketing is the other factor: if it is marketed well, the…… [Read More]
The supply and demand simulation featured a number of different economic prniciples at work. In terms of microeconomic principles, two that were featured prominently was the relationship between supply and demand. The impact of these two variables on the price and availability of apartments in Atlantis was at the core of the simulation. Another was price elasticity of demand. There were also some macroeconomic principles outlined, as they affect supply and demand. One was the overall population, its growth and demographic change. These factors all contribute to the supply and demand characteristics of the Atlantis rental housing market. Another macroeconomic concept that came into play was the concept of equilibrium and the effects of price ceilings on both supply and demand.
External factors cause the supply and demand curves to shift. The supply curve is shifted, for example, if there is new supply in the market. A new building…… [Read More]
Subway Supply and Demand
Supply and Demand
Subway Corporation: Supply and Demand
Supply and demand of a good or service in economics is the basis for economic analysis in its entirety. Supply and demand centers on the different quantities that a producer or producers will make available to the market at different prices over a given period of time. The law of supply and demand is twofold. The law of supply functions that as price increases, producers are willing to produce and sell more, while if price decreases, producers are willing to produce and sell less. The law of demand is vastly similar. It functions in a manner that as price increases, the quantitiy people are willing to buy decreases, while as prices decrease, the quantity that people are willing to buy increases. The law of supply and demand illustrates a constant push-pull between the products that are…… [Read More]
Supply and Demand at Subway
Supply and demand refer to much of the product the firm produces and how much of a product the consumers want, and each of these is affected by a number of factors (Investopedia, 2011). Among the factors that affect supply are the expected demand, the expected price the firm will receive, the price of inputs and the competition in the market (EconPort, 2006). Thus, if there are more competitors, Subway might feel like demand was going to be lower, and then it would produce less. There is a relatively short lead time for ordering, which means that an individual store might be able to make changes based on changes in demand very quickly. For the company as a whole, supply decisions are about store openings and closings, and these can also be affected by internal factors, like the need for capital.
There are also…… [Read More]
The supply of workers would also increase, however, as the result of increased demand. At first, because workers in this field are highly skilled, they might be able to command a very high price for their labor, and supply might initially be constrained and lag behind demand. But the global economy has enabled many high-technology jobs to be outsourced. Furthermore, college students are likely to tailor their skills to the upturn in demand. Because many of the workers in this industry are young, and the field is geared to younger people with a high level of comfort with technology, an influx of new graduates is likely. The only possible 'cap' upon the potential supply of workers is that the field of technology is also difficult. Difficulty in mastering the field and getting a degree in computer science or engineering may pose a limit upon the supply…… [Read More]
From a short-run perspective, it would seem to be in the interest of the 'average' American worker to support limits upon immigration, given this will raise his or her level of wages and improve his or her employment prospects. On the other hand, America has always been a nation of immigrants, many of whom have created new businesses and infused the nation with new ideas. Increased immigration can thus generate greater long-term productivity, growth, and expanded opportunities for all individuals, regardless of where they were born. Immigrants also come to the United States with a desire to command higher wages and improved working conditions and although they may accept lesser conditions initially, once they gain a foothold in America's economy, they are more likely to demand change and better wages and worker's rights. "Immigration has been an important source of economic and social vitality for the United States" even while…… [Read More]
Service Demand & Supply
Service Demand and Supply Planning
Planning is considered the most important function of every project and organization (Singla, 2011). Successful organizations spend their more than 60% of the time in the planning process. It is because strong planning makes the subsequent steps easy. If planning is poor, the rest of the activities are bound to fail. It is, therefore, mandatory to spend maximum time and put in the best efforts in the phase of planning so that execution and implementation can be made possible without hassle.
In the context of business organization, the major game to play around is maximizing profitability (Tulsian, 2002). It is the core objective of every commercial organization and the very survival and existence of organization depends upon the ratio of profits it earns. The simple formula of profit calculation is revenue less expense. In order to maximize profits, organizations adopt any…… [Read More]
Apple Inc. Supply and Demand
Apple is a U.S. multinational company that specializes in manufacturing and marketing of electronic products. Top Apple brands include iPhone, iPod, Apple Computer, and iPad. Globally, Apple is ranked as the second largest global electronic company with over $215.6 Billion revenue at the end of the 2016 fiscal year. Apart from the company superior financial performances, Apple has enjoyed high demand for its products globally based on the stylish method employed in designing the products. The iPhone is one of the major products of Apple Inc., and the company has recorded superior demand for the product since the product has been launched.
The objective of the paper is to investigate the supply and demand for the iPhone.
Supply and Demand for iPhone
The theory of supply and demand illustrates the quantity demanded versus the quantity supplied in the market. (Mankiw, 2007). The study discusses the…… [Read More]
Each of these different options would have more complex influence on price, supply, and demand in the long-term. Keeping production at its current level, while leading to a short-term price increase, would eventually cut the demand for Mrs. Acres' pies; in a "perfect" world, the price would increase until the demand reached current supply levels (i.e. eight thousand pies per month). Increasing production without raising the price would eventually allow supply to meet demand, but the overhead costs will increase and profits-per-pie will be reduced, eventually leading to a price increase and a cut in demand at uncertain levels. Similar results would come from passing on production, though Mrs. Acres would be insulated from uncertainties.
The reason that supply, demand, and price will not remain consistent over both the short- and long-term is that the company is quite obviously in a period of transition, and as with any transition there…… [Read More]
Alan Greenspan's testimony starts with a comparison between the state of the U.S. economy in July 2004, time of his present testimony, and the state of the economy in February 2004, the time of his previous testimony in front of the U.S. Congress.
In February 2004, the main problem of the U.S. economy, as identified by Greenspan, was the fact that the company's increase in income and net profits were related to a better use of human resources rather than on an increase in employment. In other words, despite the fact that the economy was on the rise, it failed to produce new jobs. This was a direct consequence, in Greenspan's opinion, of the risks associated with increased employments, more notably "corporate accounting and governance scandals," a "decline in stock prices" and the overall "geopolitical tensions"
As compared to the unemployment situation in February 2004, the period up to July…… [Read More]
Foundational Econ Problems
The argument that the economy is a result of scarcity because a country must make choices on how to use its limited resources to meet the unlimited needs and wants of its population is an economic theory that takes into consideration the fact that supply and demand is what moves markets; in times of scarcity, demand equilibrium is unbalanced and prices rise until that balance is achieved. This makes it so that some goods are priced beyond the point where ordinary consumers could reasonably expect to obtain them. If this happened for such basic goods as food like grain or milk, scarcity would drive the country into a state of starvation and chaos. This can happen in third world countries where there is no strong infrastructure in place—but in a country like the U.S., the economy is not driven by scarcity so much as it is…… [Read More]
Supply Demand Simulation
Macro and Microeconomic Principles
From the simulation, the two major microeconomic principles are supply and demand. The simulation majorly focuses on the supply and demand of rental properties in Atlantis. In addition, the influences on supply and demand form the major topic discussed in the simulation. The macroeconomic factors clearly stated in the simulation are changes in the population trend, choosing to rent or buy apartments and factors that directly influence these changes. Colander (2010), states that the quantity demanded always increases with falling prices and quantity supplied reduces with receding market prices (Colander, 2004). The company's supply is almost 2,000 apartments; the company speculates at reducing the vacancy rates to 15% to increase demand, a clear applicability of the demand law.
Demand and Supply Shifts
The availability of rental apartments, demand for rentals, number of potential renters and the pricing are the common factors that affect…… [Read More]
Demand and supply are the core concepts of economics and these are what determine the price of any given item. When demand of a certain item increases, it is usually followed by a corresponding increase in supply. And thus the price is affected. However there are times when demand increases more sharply than supply and this causes price to move up. In any case, price is directly dependent on supply and demand trends of a commodity. Price elasticity of demand refers to the economic condition when any change in price of a good and service generates some kind of response in its demand. When demand is affected by price, we know that quantity demanded is elastic. On the other hand when demand remains constant or change in price produces insignificant change in quantity demanded, we consider it a price inelastic situation. When a firm wants to change the price of…… [Read More]
Supply Chain Strategy
When it comes to companies sharing business relationships, and occasionally shareholdings, as well, a Keiretsu network is often the best way to integrate and manage that group of companies (Jacoby, 2009). In that way, the relationship between the businesses becomes a partnership instead of only that of buyer-seller (Jacoby, 2009). There are many long-term benefits of this type of network, and these benefits could be carried over to the new company that builds power tools. The Keiretsu network will allow strong relationships to be created with suppliers, and that will help lower the costs of manufacturing (Heizer & ender, 2010; Nagurney, 2006).
These lowered costs are very important, as is the lean manufacturing that can be created through proper coordination with various suppliers (Heizer & ender, 2010). However, there is some risk to the Keiretsu network in that the closeness of all the companies may make shopping…… [Read More]
Price elasticity for this product was likely quite great, before the item was subsidized, as few consumers perceived it as a necessity. Only the costs of production limited the price elasticity, as the tanks are presumably not cheap to build. Of course, the government might protest that the product is a necessity, given the dire need for conservation, if Australia is to continue to have a sustainable source of drinking water. But preserving the environment is often a case where the micro interests of the household do not match up with the macro interests of the nation. Until the subsidy was created, a household in the short-term could save money by not purchasing the rain water tank, although in the long run the household may save both on water bills and also upon more costly solutions needed by the government, to ensure that the nation has a sustainable source of…… [Read More]
Supply Chain strategies are like a living thin. They must change and adapt in order to meet the ever evolving needs of the customer and the business. They need to be flexible enough to drive ideal operational and tactical decisions. It also must be precise and clear. This is because it allows for immediacy in decision-making.
For example, future opportunities require a supply chain strategy to evolve with time. Twenty years ago, the internet was not so heavily used as it is today. Things were done in paper instead of online and digitally. Things like fax machines were used instead of email and people paid with checks instead of PayPal or some other online money system.
Now that things have become digitized, people are more likely to involve their business with online activity including websites and chat interfaces to allow customers and merchants to communicate with them effectively (Song, 2013).…… [Read More]
he value inherent to freight forwarding in the modern global supply chain can be stated both in terms of finances and efficiency, which ultimately has its own effect on finances and revenues, as well. hese two value elements are largely intertwined in the supply chain itself as well -- freight forwarders are better equipped to locate available shipping space at the best possible price than are individual manufacturers or even distributors (Baluch 2005). Freight forwarders essentially offer a service to both shippers and manufacturers/those in need of shipping, creating greater value for both asset-based entities in the arrangement by creating greater efficiency in the system as a whole (Baluch 2005).
he seven economic drivers of transportation costs can be easily illustrated with the example of a standard laptop computer. Distance for many of these units is considerable, often requiring transport from parts of Asia to Europe and North…… [Read More]
Furthermore, it appeared that the consumption of alcoholic beverages among the youth increased throughout the three-year duration of the survey. In terms of the young females (in high school), the drinking path has been described as "an absolute disaster" (Fyfe, 2010). The primary explanation as to why alcopops became even more popular among the youth is given by the inability of the tax to impact the parents -- who in most cases are the very sources of alcohol. "As parents were the primary source of alcohol among current drinkers, their ongoing preference for premixed spirits may not be surprising, as it is likely that these beverages are affordable to most parents, even after the tax increase" (Fyfe, 2010).
The Australian case of the excise tax on alcopops reveals a limited efficiency in reducing binge drinking among adolescents and it is expected that the same results would be registered within the…… [Read More]
Supply Chain Management increasingly positioned a key strategic enabler helping organisations ADD VALUE push boundaries performance" ( e-business shortens supply chain) the eport yo submit largely work-based thoughts, ideas, views, opinions words.
Supply Chain Management
Supply Chain Management is increasingly been positioned as a key strategic enabler helping organisations to add value and push the boundaries of performance
The modern day buyers are more and more pretentious; the organisational staff members are more and more demanding; the competitive environment is more dynamic; the legislations change and the technology evolves. Virtually, the internal and external environments of the firms are in a continuous process of change and the organisational leaders have to devise a wide array of mechanisms by which to cope with the new challenges, to take advantage of their opportunities and to limit their threats.
One important tool used in this direction is represented by Supply Chain Management. The…… [Read More]
Supply Push to Demand Pull: Agribusiness Strategies for Today's Consumers" by Martinez and Hayden discusses supply, demand and pricing of one of the most popular and common commodities available to man in modern society today ... food!
In this article the authors discuss the change in supply, demand and pricing of food products on the open market, specifically staples including meat products such as chicken, beef and pork. They discuss the trend agribusinesses are jumping on to provide consumers with fewer natural food products and more and more processed food products during the 20th century.
The article begins by summarizing the changes that have occurred in the supply and demand for food over the last two decades. According to the article, in times of old the food demanded from agribusiness suppliers were unprepared staples that individuals could cook in their own kitchens. This included products such as beef, pork and…… [Read More]
Natural Gas Supply, Demand and Pricing
Over the past 15 years there has been a significant transformation both in natural gas supply and natural gas consumption. Wellhead price deregulation has permitted natural gas prices to adjust freely to prevailing supply and demand conditions, and open-access transportation has allowed natural gas volumes to move freely from producers to consumers. As a result of industry restructuring, natural gas supply, demand, and prices are now subject to competitive market forces, which are largely responsible for recent efficiency gains in natural gas production.
The weather is the largest single factor affecting natural gas cost and it is also the most difficult to predict ("America's Natural Gas Supply Challenge").
Most utilities use storage as a hedge against higher prices as gas purchased and stored in the summer is typically lower priced than gas purchased during cold winter months. Storage gas can then be used in…… [Read More]
Handling an epic crisis requires a swift response and a high level of organization and efficiency. It also requires the ability to meet the needs of a large number of stakeholders, whose situations and needs might be quite diverse in nature. A capitalist economic system should have a fairly high level of efficiency, but that efficiency tends to develop over time -- you don't become Wal-Mart overnight. During Katrina, one of the first companies on the scene was FedEx, which used is high level of organization and efficiency to provide goods to the area (FedEx, 2005). The drawback to this system is that while it allows for altruism and community service, it is not oriented towards it. FedEx can deliver medical supplies but it cannot reunite families or repair damaged neighborhoods. While in theory there could be a private disaster-relief company that operates privately, in practice the payer is…… [Read More]
transitioning of the Defense Transportation System towards complementing best practices in supply chain management efficiently and securely is a daunting task. Organizations like DTS that aid the DOD in various processes requires consistent, effective, and continual management of things like inventory and delivery. That is why examining ways to improve the supply chain must be addressed. One way to address this issue is seeing how other companies or similar organizations handle their supply chain demands. Best practices mean collection of information from organizations or companies that perform a certain task or adopt a strategy effectively.
The supply chain and supply chain management must be examined and through research into best practices of other organizations and business in relation to supply chain may yield favorable results. For example, the use of AIT technology could very well help increase automation and tracking for the DTS. Technology is a way to improve the…… [Read More]
al-Mart and how over the years it has managed its supply chain operations. A one of the leading successful company in the world, and ruling the Fortune 500 in 2011 and for the second year running, its success could be labeled from its continued focus on customer's needs and reducing costs through efficient supply chain management practices.
Supply Chain Management (SCM) can be defined as the running of a network of interrelated businesses with the ultimate goal of providing products and services at the required time, and as required by end/right customers and at the required time using the most efficient means. (Harland, 1996) al-Mart has been commended for doing that very well. It could also be taken to mean the process of a company design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing…… [Read More]
economic tools and concepts which can be applied in the contemporary issues and typical, dynamic situations that are existent in today's health care industry. There have been numerous economic changes in the economy of the United States which in turn have come to have an impact and fashioned the current trends in the health care of the nation. These include economic aspects such as the financial recession which have had an impact on consumer patterns which in turn influences the level of demand for health care. For instance, most dental practitioners are private doctors and therefore the consumers make appointments as much as they wish. This implies that as a result of aspects such as recessions, the consumers will cut down their appointments unless they are urgent or in case of emergencies (Keegan et al., 2013).
In the same manner, recession affects the level of demand as it brings about…… [Read More]
UU KU isk
isk is everywhere. The greatest opportunity for any organization rests in its ability to manage risk to its own advantage. The world is not that simple though, and the mysterious nature of the universe presents unknowable challenges in front of us all as we navigate through our lives and experiences. "Managing risk is the number one concern of CEOs and COOs and financial executives in North America and Europe see supply chain disruptions as the second biggest threat to their operations, " (Bidgoli, 2010). Success in any endeavor results from mindfully weighing pros and cons to find appropriate solutions that can maximize benefit. The entire journey is a narrow path, but those organizations and individuals who can navigate without fear have an opportunity to make the best of risk.
The purpose of this essay is to discuss how risk management within supply chain logistical systems can be…… [Read More]
Supply and demand are two fundamental aspects of economics. It is the combination of these elements that makes up a market. Therefore, it is paramount to understand both concepts in order to appreciate the mechanisms of economic theory.
Supply is the ability and willingness of merchants to provide commodities for sale. Quantity supplied is a definite amount of goods at established prices. A supply curve depicts the connections between the price and quantity supplied of a good or service within a certain time period.
In order to understand supply curves, one must also comprehend the law of supply, production costs, marginal costs, and profit maximization. The law of supply states that as the price of an item rises the quantity supplied similarly increases. As the price falls, so too does the quantity supplied. In other words, there is a positive relationship between price and quantity supplied.
Another major factor in…… [Read More]
Supply and demand analysis of Apple Inc. products
The concept of supply and demand are closely related and need to b well understood in order for any business or company to progress since they determine whether a company will make profits at the end of the financial year or make losses. There ae several factors that influence or affect the supply and demand of products in the market, some of which are price related and others not related to price. This paper will hence look into various factors that influence the demand and supply of the Apple products and how the interaction helps shape the future of the organization in terms of quantity produced and the changes in their products and innovation.
The two non-price variables that affect the demand for the Apple products are customer income and the geographical region. The Apple products are often priced for a given…… [Read More]
The Current State, Objective and Future Trends of isk and disruption management in supply chains
States and Trends of isk and Disruption Management in Supply Chains
After suffering for years, managers' gain ground in supporting supply and demand market of today, yet the effective assessment of managing risk as well as disruption is still an active conversation amongst project managers. Management takes a new position and arranges new strategies to support potential critical paths in product development and distribution. The supply chain is now global, thanks to the help of the internet, and thus needs active plans to support the future growth of distribution of products to a diverse and otherwise complex sociological environment. By evaluating the current state, revealing potential trends and discussing the support of potential disruptions, a better understanding for problem solving and preventative measures will ensue.
The current state of affairs for…… [Read More]
The product being studied is the Prius, the hybrid car from Toyota. The automobile industry is one the largest industries in the world. The major players are Ford, General Motors, Chrysler, Honda, Mitsubishi, Hyundai, several European companies and regional players as well (Investopedia, 2011). These firms all contribute to intense competition among rivals, especially given the size of the industry. The result is an industry characterized by competition both along the lines of differentiation and cost leadership. Firms must sell high volumes of cars at low margins in order to earn revenues, but must also load those cars with features and demonstrate technological leadership in order to attract business.
The large number of firms has an impact on the supply conditions within the industry. Supply is determined by expected sales and by the capacity of manufacturing facilities. In general, the global automobile industry suffers overcapacity. There are high costs…… [Read More]
Thus it was confidence ebbed that had ebbed actual income. The Hiscox Wealth eview of 2009 found: "The recession has left its mark on the psyche of the Working Wealthy with a lack of confidence impacting their perceptions of wealth and appetite for risk. Whilst two in five (41%) say the recession has not had an impact on the amount of money they have to spend, almost an equal number (44%) say they are fearful of the future" (PN Newswire, 2009). But, observed Vanity Fair reporter tartly: "Most 60-year-old ex-Lehman Brothers bankers likely squirreled away enough to at least scrape by on a couple of million a year" (Shnayerson 2009, p.3). If they did cut back, it was in relatively minor ways: "Why should I pay $250,000 for a private plane," said one man to the magazine "when I can pay $20,000 to fly commercial first class" (Shnayerson 2009, p.1).…… [Read More]
Supply Chain Ann
Supply Chain Management Annotated Bibliography
Chopra, S., & Meindl, P. (2010). Supply chain management: Strategy, planning and operation (4th ed.).Upper Saddle iver, NJ: Prentice Hall
The text by Chopra & Meindl (2010) is an excellent starting point for this discussion, primarily because it serves as a rather exhaustive introductory reading on the subject. Providing academic explanation of the basic premise of supply chain management and an extensive investigation of the strategies used for maintaining and evaluating this business dimension, the Chopra & Meindl text is a highly useful primary and frequently employed reference source on the subject.
Lee, H.L. (2002). Unleashing the power of intelligence. International Commerce eview: EC Journal, 2(1), 61-73.
The above source is well-supplemented by the article from Lee (2002), which adds a discussion about technological and practical advancement to the subject. Here, Lee identifies shifts both in capability and orientation, particularly vis-a-vis the…… [Read More]
n spite of subsequent attempts to control spending, the average net savings, as estimated in the NPA attained a low of negative $40 billion or negative 0.4% of GDP during the first quarter of the year. A majority of these authorities are subject to balanced -budget necessities and added rules which need them to respond to fiscal disturbances. Hence in addition to decreasing operating expenses, government relied on reserves, introduced bonds in the market, sold assets and performed lot of one-time corrections in the timing of payments to balance their books.
Of late, a lot have even enhanced taxes and fees thus countering the trend towards lower taxes, which existed during the late 1990s. Latest indications have been that the fiscal stress in this sector has started to relieve. The enhancement shows a perceptible upturn in collections of taxes in recent quarters whereas control on operating expenses on the whole…… [Read More]
From this basis of trust and a
concentrated focus on streamlining processes that enable communication
between manufacturers and suppliers, technology is often introduced, albeit
selectively. It is erroneous to look at technology in the context of
supply chain management as the panacea; rather it needs to be seen as the
enabler of efficiency and inter-supply chain collaboration, quality
management, and supplier relationship management. Technology is only
applied to supply chains after the fundamental relationships and trust have
been defined, along with a culture that is unique to the collaboration
within a given supply chain. The culture that has emanated from high
quality standards that Toyota has placed on suppliers and the development
of the Toyota supplier base as a learning organization over just
transaction partners. Toyota has rigorous standards for defining their
suppliers and use technology including many forms of online collaborative
applications to further support their quality and egalitarian…… [Read More]