Demand And Demand Essay
analytical Essay
733 words
In economics, one particular arresting feature is the price effect on demand and supply. With the aim of making commodity and service market balance, demand and supply should tend to be balanced. That is economic equilibrium. Market equilibrium is the situation where quantity supplied and quantity demanded of a specific commodity are equal at the certain price level. As the diagram shows below, at price1 quantity supplied is more than quantity demanded, a surplus occurs. That means producers cannot sell all the products because of the small demand of market. Then price will start to fall. At price 2, quantity demanded is more than quantity supplied, a shortage occurs. In this situation, more products will be made because producers have pursuit …show more content…
One factor is the increase of income rate. As the diagram shows below, it results the demand curve shift from D to D1. When people get more income, more money will be available for them to spend. Since the purchase power of customers improves, the demand of them increases as well. Make luxury handbags as the example. If a woman earns five hundred pounds per month, she may not be willing to buy a handbag in expensive price because she need to keep life going. But if this woman gets a higher salary of one thousand pounds or even more per month, or she wins a lottery in big amounts, she will be more willing to buy a luxury handbag. Thus the demand of luxury handbags will increase. As the movement of demand curve a shortage will occur. A new equilibrium will appear until the price moves from P to P1. And the quantity will rise from Q to …show more content…
According to the diagram below, the supply curve shift from S to S1, which raises price but reduces output. When people purchase goods, not only the product itself need to be considers, but also other products that is related to it. Make instance of tea and teapot. If the price of tea rises or the output of tea decreases, the number of people who drinks tea will lessen. Except the situation of teapot collection, teapots are just accessories of tea. Now that people drink tea less, the sales volume and profits of teapots will decline. Thereby, producers will cut down the output of teapots. As the movement of supply curve a shortage occurs. Since the price rises from P to P1, a new equilibrium will appear. And the quantity will decreases from Q to
In this essay, the author
- Explains that economic equilibrium is the situation where quantity supplied and quantity demanded of a specific commodity are equal at the certain price level.
- Explains that the market equilibrium will be changed by four factors. one factor is the increase of income rate, which results in the demand curve shift from d to d1.
- Explains that weather conditions can lead to a change in market equilibrium. many products have limited selling factors such as umbrellas.
- Explains that economic equilibrium is the situation where quantity supplied and quantity demanded of a specific commodity are equal at the certain price level.
- Explains that the market equilibrium will be changed by four factors. one factor is the increase of income rate, which results in the demand curve shift from d to d1.
- Explains that weather conditions can lead to a change in market equilibrium. many products have limited selling factors such as umbrellas.
- Analyzes how the supply curve shifts from s to s1, which raises price but reduces output. tea and teapots are just accessories of tea.
- Illustrates how an increase in supply shifts the supply curve to the right, which reduces price and increases output.
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- Macroeconomics: Supply And Demandexplanatory essayWe the consumer would rather pay less for any product that is needed or want. Ultimately we are the reason for high prices as well as low prices. Prices of products do not always stay the same and more popular products have higher prices than less popular products. These fluctuations, high prices and low prices are from the idea of supply and demand. Supply and demand defines the effect that the availability of a particular product and the desire or demand for that product has on price. Generally, if there is a low supply and a high demand, the price will be high (Investopedia). To understand the idea of supply and demand, the understanding of supply and the understanding of demand must be defined. The Law of Supply states that at higher prices, producers are willing to offer more products for sale than at lower prices, also that the supply increases as prices increase and decreases as prices decrease (Curriculum Link). The Law of Demand states people will buy more of a product at a lower price than at a higher price, if nothing changes, at a lower price, more people can afford to buy more goods and more of an item more frequently, than they can at a higher price and that at lower prices, people tend to buy some goods as a substitute for others more expensive (Curriculum Link). In todays economics these ideas are seen frequently in everyday life. The laws of supply and demand are seen in many ways in the company Apple Inc. Each year Apple Inc unveils a long awaited mobile operating system and IPhone. We can also see many aspects of the law of supply and demand in Nike Inc’s Jordan Brand. Jordan Brand has released a number of...
In this essay, the author
- Explains that consumers are the reason for high and low prices. supply and demand defines the effect that the availability of a particular product and the desire or demand for that product has on price.
- Explains that apple releases its ios operating system for free and releases their hand-held devices for $399, which is expensive to the average person. supply and demand are seen in apple's sales tactics.
- Explains that jordan is the second biggest brand in the country with 10.8 percent share of the overall us shoe market.
- Explains that consumers are the reason for high and low prices. supply and demand defines the effect that the availability of a particular product and the desire or demand for that product has on price.
- Explains that apple releases its ios operating system for free and releases their hand-held devices for $399, which is expensive to the average person. supply and demand are seen in apple's sales tactics.
- Explains that jordan is the second biggest brand in the country with 10.8 percent share of the overall us shoe market.
- Explains that sony's playstation console has a high demand, since it doesn't release every year and sells out on release dates. the demand for the playstation 4 began before the console went on sale.
1062 wordsRead More - Price Elasticity Of Demand Essayexplanatory essay(b) Provide an example of how a Central Bank could use monetary policy to achieve
In this essay, the author
- Explains that price elasticity of demand illiterates the change in quantity demanded as price changes.
- Explains why it is useful for firms to understand the concepts price elasticity of demand.
- Explains that allocative efficiency is an economic condition in which companies produce certain products which are in high demand and more popular in society.
- Explains that price elasticity of demand illiterates the change in quantity demanded as price changes.
- Explains why it is useful for firms to understand the concepts price elasticity of demand.
- Explains that allocative efficiency is an economic condition in which companies produce certain products which are in high demand and more popular in society.
- Explains that resources are restricted making products efficiently allows for greater levels of production if the economy cannot product anymore of the certain good without eliminating another product.
- Defines production possibility frontier as a curve showing all maximum output possible for 2 or more products while given inputs such as labour, resources and materials. productive/technical efficiency is defined as the absence of waste in the production process.
- Explains that cost push inflation occurs because of high production cost which decreases aggregate supply in the economy.
- Explains that the shortage of supply pushes the price up which represents cost push inflation.
- Provides an example of how a government could use fiscal policy to achieve an increase.
- Illustrates how a central bank could use monetary policy to achieve its goals.
- Explains that demand pull inflation is a result of too many pounds chasing too few goods.
1058 wordsRead More - The Pros And Cons Of Demandanalytical essayPaul De Grauwe published, “Yes, It’s the economy, stupid, but is it demand or supply?” on January 24, 2014 for CEPS Commentary. According to Paul De Grauwe, policy-makers are trying to fight a problem with the ‘wrong medicine’ as he puts it. He explains how before the 1970s economists focused on demand control; then when the 1970s came a supply shock that they were unprepared for hit. Due to this unpredicted supply shock, economists started developing different supply-side models that would hopefully combat this problem and keep it from happening again. However, with the corrections from the supply shock, they no longer focused on demand, and that resulted in a demand shock in 2008, where repeated mistakes occurred. François Hollande is mentioned to believe in the power of free market and that “…supply-side economics together with rejection of demand management is based on an ideological premise that markets have self-regulating characteristics, and that unemployment with therefore disappear automatically…” (Grauwe 4)
In this essay, the author
- Analyzes how paul de grauwe explains that policy-makers are trying to fight a problem with the ‘wrong medicine’ as he puts it.
- Explains that before the 1970s, economists focused on demand control, believing the supply was flexible enough to always adjust to demand.
- Explains that economists developed models that focused on supply, stating that supply creates its own demand. the supply-side models became the new generation of policy-makers, but did not apply to the market of central bankers.
- Analyzes how paul de grauwe explains that policy-makers are trying to fight a problem with the ‘wrong medicine’ as he puts it.
- Explains that before the 1970s, economists focused on demand control, believing the supply was flexible enough to always adjust to demand.
- Explains that economists developed models that focused on supply, stating that supply creates its own demand. the supply-side models became the new generation of policy-makers, but did not apply to the market of central bankers.
- Explains that economists were not getting anywhere with their predictions of demand shock and supply shock.
- Analyzes how the 'wrong medicine' continues to go to the problems, but never seems to solve them correctly. development on different models started to try to predict the shocks, and the creation of the supply-side model.
632 wordsRead More - Contraction Of Demand Essayanalytical essayThe Law of Demand states that “there is an inverse relationship between the price of a good and demand. As prices fall, we see an expansion of demand. If price rises, there will be a contraction of demand (Riley, 2016).”
In this essay, the author
- Explains that the law of demand states that there is an inverse relationship between the price of a good and demand.
- Explains that in the world of economics, demand refers to one's willingness and ability to acquire goods or services, thus creating a sense of demand.
- Explains that demand is a conventional action, but there are various possibilities that one must consider. demand is best described with the use of time units.
- Explains that the law of demand states that there is an inverse relationship between the price of a good and demand.
- Explains that in the world of economics, demand refers to one's willingness and ability to acquire goods or services, thus creating a sense of demand.
- Explains that demand is a conventional action, but there are various possibilities that one must consider. demand is best described with the use of time units.
- Explains that economic need to know is not as important as balancing one’s own budget or learning to conquer major goals in life. however, economics has an influence on every single minute of our life for one simple reason.
- Explains the basic economic concepts that consumers need to know, such as scarcity and the market system.
- Analyzes how the market system is determined by the supply and demand process, which explains the fluctuation of prices from year to year.
- Explains that cost and benefits affect a large area of economics involving balanced prospects and lucid selections. producers hire more individuals for production only when the cost of plastic validates payroll and materials needed to produce the plastic.
- Explains that incentives aspire to the world and are beneficial, but they can also be destructive. incentives that are effective often become part of the company's operating process.
- Explains that the above discussed concepts ultimately drive the choices that people make with the information that they have obtained.
- Explains reem heakal's theory that the higher the price of a good, the less people will demand it. people shun costly products especially if it forces them to give up something they desire more.
- Analyzes the demand curve represented by points a, b, and c. the points reflect an association between the price (p) and the quantity demanded (q).
1085 wordsRead More - Irrational Love Analysisanalytical essayAnother word for this is equilibrium, which is the “state in which opposing forces or influences are balanced” (). By shifting the supply curve, it can adjust the equilibrium price by changing its price and quantity. A shift of a supply curve works the same way as the shift of a demand curve. By referring back to Tim’s life, his supply of labor allows him to receive his income he needed in order to make demands for his desire – or his woman’s desire. When a woman has an expensive taste, it will affect Tim’s supply curve because he will not be able to afford songwriters, singers, and bands. This causes the supply curve to shift to the left resulting an increase in price of Tim’s music and a decrease in quantity of his music. If the supply curve continues to shift to the left, eventually Tim will go out of business, and his girlfriend will ditch him because he can no longer keep up with her wishes. So far, everything is going downhill and the opportunity cost Tim made was not worth because it affected his career and his life. However, if Tim decided to his focus on his career rather than his wife, then the supply curve will shift to the right. This depends on the opportunity cost as well as if he is willing to spend less money on his wife and more towards his profession. By having a right shift of
In this essay, the author
- Analyzes how people become irrational when they fall in love with their mates, but are blind to the opportunity costs they are exchanging to win their devotion.
- Analyzes how the phrase "love is the reflection of an inelastic demand curve" helps one realize when he or she is becoming irrational upon love.
- Explains that an opportunity cost is the cost of an alternative that must be forgone in order to pursue an action.
- Analyzes how people become irrational when they fall in love with their mates, but are blind to the opportunity costs they are exchanging to win their devotion.
- Analyzes how the phrase "love is the reflection of an inelastic demand curve" helps one realize when he or she is becoming irrational upon love.
- Explains that an opportunity cost is the cost of an alternative that must be forgone in order to pursue an action.
- Analyzes the demand curves of a love life like tim mcgraw. the shift of the curve determines whether there is an increase or decrease in demand.
- Explains that the supply curve is ineffective because it determines the price of a certain quantity when interacting with the demand curve.
1068 wordsRead More - Supply and Demandexplanatory essay...ess supply, leading some producers to keep their goods, as they won’t be able to sell them. Consequently, producers tend to reduce their prices in order to make their product more appealing as well as remain competitive in the market. In response to lower prices, the demand will increase, moving the market toward of an equilibrium. As opposed to surplus, there is a shortage, which refers to the excess of demand. The shortage makes consumers unable to buy as much of a good as they would like. Therefore, producers will raise both the price of their product as well as the quantity they are keen to supply. Consequently, the increase in the price might be really significant for some people and they will no longer demand the product. On the other hand, the increased quantity of available product might satisfy other consumers, where eventually equilibrium will be reached.
In this essay, the author
- Explains the relationship between supply and demand, which is the chief support of a market economy, and the allocation of resources in the most effective way.
- Explains the law of demand, which states that the higher the price of a product, the less buyers will demand it. consumer income, tastes and fashions, alternative and/or complementary goods, and sociocultural factors determine the demand relationship.
- Explains that there are two examples of price and demand. the first example shows that, at price p1, the quantity demanded would be equivalent to q1 (bigger quantity).
- Explains the relationship between supply and demand, which is the chief support of a market economy, and the allocation of resources in the most effective way.
- Explains the law of demand, which states that the higher the price of a product, the less buyers will demand it. consumer income, tastes and fashions, alternative and/or complementary goods, and sociocultural factors determine the demand relationship.
- Explains that there are two examples of price and demand. the first example shows that, at price p1, the quantity demanded would be equivalent to q1 (bigger quantity).
- Explains that supply refers to the market's capacity to offer the product or service at a given price. the correlation between supply and price is known as the supply relationship.
- Explains that the supply diagram shows an inverse situation to the demand diagram.
- Analyzes how the relationship between supply and demand affects the price of a product.
- Explains the two phenomena that occur in both supply and demand curves, the movements along and the shifts.
- Explains that a movement along the demand curve implies that the supply relationship remains consistent. it occurs when the price of the good changes, so does the quantity supplied.
- Explains that a shift in demand or supply curve takes place when the quantity supplied or demanded changes, but the change is related to anything other than price, as it remains the same.
- Explains that when the supply curve shifts to the right side, it means that there is an increase in the quantity supplied, making p1 q2 the s2 point.
- Explains that when supply and demand function intersect, it can be called market equilibrium or equilibrium price. in the real marketplace, equilibrium does not exist and can only be reached in theory.
- Explains that when the market is not in equilibrium, the cause is either an excess supply or excess demand, also known as surplus and shortage.
1178 wordsRead More - Supply and Demandexplanatory essayThe quantity of a commodity demanded depends on the price of the commodity, the prices of all other commodities, the incomes of the consumers as well as the consumer’s taste. The quantity of a commodity supplied depends on the price obtainable for the commodity as well the price obtainable for substitute goods, the techniques of production, the cost of labor and other factors of production. It is supply and demand that causes a market to reach equilibrium. If buyers wish to purchase more of a commodity than that of which is available at a given price, then the price will to tend to rise. If they wish to purchase less of a commodity than that of which is available, then the price will tend to drop. Consequently, the price will reach equilibrium at which the quantity demanded is just equal to the quantity supplied.
In this essay, the author
- Defines supply and demand as the relationship between quantity that producers wish to sell at various prices and quantity of a commodity that consumers want to buy.
- Explains that the invisible hand is the natural force that guides the market to this competition for scarce resources. without the "invisible hand" theory, prices would be determined almost free of debate.
- Explains that supply and demand is the root of all economic pricing. economic pricing uses the theory of the invisible hand to create a market demand that avoids monopolistic tactics.
- Defines supply and demand as the relationship between quantity that producers wish to sell at various prices and quantity of a commodity that consumers want to buy.
- Explains that the invisible hand is the natural force that guides the market to this competition for scarce resources. without the "invisible hand" theory, prices would be determined almost free of debate.
- Explains that supply and demand is the root of all economic pricing. economic pricing uses the theory of the invisible hand to create a market demand that avoids monopolistic tactics.
348 wordsRead More - Supply and Demand Simulationanalytical essayThe demand curve follows a distinct line unless some other factor causes the line to shift. The demand curve operates under the principle if the demand goes up the price goes down, and likewise if the demand goes down the price goes up as long as all other things are constant. A shift in the demand curve indicates something is not constant. In the simulation, a company named Lintech expanded its operations to Atlantis. The expansion increased the population of Atlantis changes the demand for apartments, but does not change the supply of apartments in the area. The sudden shortage of apartments created a demand curve shift. The shift permits Goodlife to offer a higher price for their 2 bedroom apartments, and still be able to fill the same number of units. By increasing the price, Goodlife brought the price and quantity available back into equilibrium (University of Phoenix, 2014).
In this essay, the author
- Describes how the applying supply and demand concepts simulation guides users through making decisions for goodlife, a management company for 2 bedroom apartments in atlantis.
- Explains that the demand curve follows a distinct line unless some other factor causes the line to shift.
- Analyzes how the demand curve shift triggers goodlife to reduce rental rates to maintain occupancy in their apartments.
- Describes how the applying supply and demand concepts simulation guides users through making decisions for goodlife, a management company for 2 bedroom apartments in atlantis.
- Explains that the demand curve follows a distinct line unless some other factor causes the line to shift.
- Analyzes how the demand curve shift triggers goodlife to reduce rental rates to maintain occupancy in their apartments.
- Explains that the supply curve follows a similar concept as the demand curve. goodlife decided to convert some of their apartment homes to condominiums in response to growing interest in detached homes.
- Analyzes how the city of atlantis imposes rent control to assist middle-income families in finding affordable housing. goodlife reduces their supply of apartment homes to match the cost of operations.
- Explains that microeconomics is the smaller events on an individual level. lintech expanding its operations to atlantis caused a change on the demand curve by increasing the number of potential renters.
- Explains that macroeconomics is larger events on societal level, such as the massive increase in the technological industry in atlantis. the large increases in population drove the city to implement rent control.
- Describes how the large influx of amazon.com employees caused a demand shift, and prices for each unit had risen substantially.
- Analyzes how goodlife's strategy was to match the price and quantity available with what the consumer is willing to pay.
- Explains that goodlife, like many companies, strove to match and change with the market. supply and demand are not a constant, but an ever-changing model.
1008 wordsRead More - Owner Occupied Housing Case Studyexplanatory essayIf the price for one good increases, consumers will turn to a different good to satisfy their needs (Substitute Goods, n.d.), thereby decreasing demand for the original good and increasing the demand for the substitute good.
In this essay, the author
- Explains that rising ratios, which means the market is becoming stronger for home ownership, also impacts contractors, lenders, suppliers, and landlords.
- Opines that the rent/price ratio is a key ratio in determining the value of buying home, but it is not the only factor in making that decision.
- Explains supply and demand theory and how prices are set, how the market is at equilibrium, and human behavior in the context of a free market economy.
- Explains that rising ratios, which means the market is becoming stronger for home ownership, also impacts contractors, lenders, suppliers, and landlords.
- Opines that the rent/price ratio is a key ratio in determining the value of buying home, but it is not the only factor in making that decision.
- Explains supply and demand theory and how prices are set, how the market is at equilibrium, and human behavior in the context of a free market economy.
- Explains that when the rent/price ratio increases, it is more cost-effective to buy than to rent. marginal benefit is the amount of satisfaction one experiences from consuming a good or service.
- Explains that contractors are those involved in home construction and home improvement. this is in line with the increased demand for new rental units, the preference of millennials, and the ever-increasing cost of single-family homes.
- Explains that building suppliers support the construction and home improvement industries. suppliers provide building material from lumber and insulation, drywall and flooring, to appliances and fixtures.
- Explains that mortgage lenders will benefit directly as home sales and new home construction increase in higher rent/price ratios. lenders also benefit from homeowners who are investing in home improvements.
- Explains that landlords are also impacted by fluctuations in the rent/price ration and invest in property improvements. low vacancy rates and supply and demand are leading to increased rental prices.
1639 wordsRead More - The Concept Of Scarcityanalytical essayThis is where the supply and demand models intersect each other and make the equilibrium point on the graph. Money has made it easier to associate prices rather than quoting prices with other goods and services. In chapter 3, we see how the Flintstones characters are negotiating prices for the goods or services (pg. 31). The consumer received the product he desired however; he had to give something of value for it. While the supplier on the other hand, received something of value from the buyer but it also costs him his product. This illustrates that the demand and supply models reflect the balance between scarcity and the value of the product to create the equilibrium
In this essay, the author
- Explains that scarcity is defined as the inability to satisfy the unlimited wants of consumers with the limited resources available for suppliers.
- Analyzes how scarcity reveals the value of an item is different for each individual and their willingness to pay for it.
- Analyzes how the two concepts of scarcity and value come together and create markets where society can exchange goods or services at a price where the consumer and supplier both agree on.
- Explains that scarcity is defined as the inability to satisfy the unlimited wants of consumers with the limited resources available for suppliers.
- Analyzes how scarcity reveals the value of an item is different for each individual and their willingness to pay for it.
- Analyzes how the two concepts of scarcity and value come together and create markets where society can exchange goods or services at a price where the consumer and supplier both agree on.
- Explains that production incorporates pieces of each concept when suppliers are striding for the end product. profit or capital is a major factor as it affects every other aspect of production and an indicator for prosperity.
- Explains how south korea became the eleventh largest steel company in the world by becoming more productive in its inputs. this reflects in both the supply and demand models.
704 wordsRead More - Economics: Demand and Quantity Demandedargumentative essayThe law of demand states that if everything remains constant (ceteris paribus) when the price is high the lower the quantity demanded. A demand curve displays quantity demanded as the independent variable (the x-axis) and the price as the dependent variable (the y-axis). http://www.netmba.com/econ/micro/demand/curve/
In this essay, the author
- Explains that they will distinguish demand and quantity demanded by stating the differences between both terminologies.
- Explains that economics is the study of resource allocation, distribution and consumption, capital and investment, and management of the factors of production.
- Illustrates the law of demand in the graph. as the price increases, the quantity demanded decreases to 10, but increases to 18, 26, 38, and 53.
- Explains that they will distinguish demand and quantity demanded by stating the differences between both terminologies.
- Explains that economics is the study of resource allocation, distribution and consumption, capital and investment, and management of the factors of production.
- Illustrates the law of demand in the graph. as the price increases, the quantity demanded decreases to 10, but increases to 18, 26, 38, and 53.
- Analyzes how the taste and preferences of consumers constantly change due to what they see, their age plus education. with the knowledge that they take in their everyday life, it shapes a different feeling or thinking.
- Explains that some consumers have this thing of knowing what is going to happen to the prices in the future. this is not where the consumer consider themselves as a shrink or fortune teller.
- Explains that in a country or state or region, there will be changes in the population, such as an increase or decrease due to the birth rate and death rate.
- Explains that there are two types of goods: complementary goods and substitutes goods.
- Predicts that with the introduction of new taxes, especially taxes for goods bought, the demand will decrease. the curve will shift to the left.
- Explains that the law of demand states that if everything remains constant when the price is high the lower the quantity demanded.
- Explains that quantity demanded is associated with the movement along the demand curve. the curve is downward sloping from left to right as it shows the law of demand.
- Explains that the higher the income, the more things consumers will buy. this applies to normal goods but not for inferior goods, such as coca-cola bottles imported from usa.
- Explains that demand is where the price is not the factor which will shift the demand curve to the left or right.
1410 wordsRead More - The Workings and Effectiveness of the Price Mechanismargumentative essayincentive to producers to supply more and will discourage consumers from buying so much. Price will continue to rise until the shortage has thereby been eliminated. The exact
In this essay, the author
- Explains that consumers are able to vote with their money by offering more of it for products that are in greater demand.
- Explains that the government sets a maximum price below the equilibrium to eliminate shortages. this would lead to black markets and monopolies in the market place.
- Explains that the government offers unemployment benefits to those who are out of work, re-trains people for jobs that have a shortage of supply, subsidies to companies' equivalent to the benefits of installing machines, and encourages companies to set up factories.
- Explains that consumers are able to vote with their money by offering more of it for products that are in greater demand.
- Explains that the government sets a maximum price below the equilibrium to eliminate shortages. this would lead to black markets and monopolies in the market place.
- Explains that the government offers unemployment benefits to those who are out of work, re-trains people for jobs that have a shortage of supply, subsidies to companies' equivalent to the benefits of installing machines, and encourages companies to set up factories.
- Analyzes the workings and effectiveness of the price mechanism as a means of allocating and reallocating scarce resources.
- Compares the command economy and the free market economy.
- Explains how government intervention disrupts the price mechanism.
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