Supply and Demand
analytical Essay
1724 words
Different market decisions determine how an economy is run. There are several different factors that account for how markets make their decisions, which determines how they function. The theory of markets mostly depends on supply and demand. However, it is key to note that there is a difference in demand/supply and quantity demanded/supplied. A demand is how much the buyer plans to purchase at various markets prices and the quantity demanded is what the buyer actually purchases at a particular price. Supply is the producer or the seller’s plan of the amount the seller will make available at different market prices and the quantity supplied is the actual amount that the seller makes available at a particular market price. It is important to differentiate between supply/demand and quantity supplied/demanded and not assume they are the same thing. A surplus is when the quantity supplied is greater than the quantity demanded at a specific price. A shortage is when the quantity demanded exceeds the quantity supplied at a specific price. All of these key terms play a significant role in the theory of markets and how markets make decisions. The features of a market can be seen in real world situations: lab methods to pick gender, opportunity to buy wine online, a shortage of the iPhone 4S, a surplus of chicken for farmers and gluten-free grocery stores, all of which will be discussed in the next few paragraphs. The demand is one essential factor in a market system; if there is a demand a producer will supply a buyer’s demand and both sides are content. The buyer gets what they want and the supplier makes a profit. More recently, there has been an increase in demand to pick the gender of a child before pregnancy and people are satisfyi... ... middle of paper ... ...line-WSJ.com.” Wall Street Journal. Business News & Financial News - The Wall Street Journal - Wsj.com, October 15, 2011, accessed October 23, 2011, http://online.wsj.com/article/SB10001424052970203499704576624891779371806.html?mod=WSJ_LifeStyle_Lifestyle_5. Tomson, Bill, “As Chicken Prices Rise for Consumers, U.S. Steps in to Help Farmers- WSJ.com.” Wall Street Journal. Business News & Financial News - The Wall Street Journal - Wsj. August 18, 2011, accessed November 5, 2011, http://online.wsj.com/article/SB10001424053111903596904576516560956498024.html?KEYWORDS=surplus. Troianovski, Anton, “Sprint Jumps Into iPhone Frenzy- WSJ.com.” Wall Street Journal. Business News & Financial News - The Wall Street Journal - Wsj. October 15, 2011, accessed October 21, 2011, http://online.wsj.com/article/SB10001424052970204002304576629413133310144.html?KEYWORDS=iphone+4s.
In this essay, the author
- Explains that different market decisions determine how an economy is run. the theory of markets mostly depends on supply and demand, but there is a difference in demand/demand and quantity demanded/supplied.
- Explains that there has been an increase in demand to pick the gender of a child before pregnancy and people are satisfying that demand by infertility specialists.
- Illustrates how a shift to the right in the demand curve signifies an increase in demand.
- Analyzes how factors such as consumer tastes and preferences, income, consumer expectations, prices of other related products, and the number of buyers contribute to a shift in demand.
- Illustrates how supply has changed for online wine auctions. with the help of the internet, there are companies that help consumers purchase the wine that they desire to buy.
- Explains that the increase in the supply curve can be attributed to technology and the number of producers or sellers.
- Explains that a shortage creates higher prices of products due to low supply. sprint jumps into iphone frenzy and sells out of the new iphone 4s.
- Explains that a surplus is created when the quantity supplied is greater than demand, which affects the supply and demand markets.
- Analyzes how changes in quantity supplied or demanded affect how markets function in a supply and demand market.
- Explains that supply and demand, shortages, surpluses and changes in quantity supply affect the theory of markets.
- Analyzes how stacey delo's "gluten-free grocery targets a niche- wsj.com." business news & financial news.
- States teague, lettie, "click, click, sold! bidding for bottles online-wsj.com." business news & financial news, the wall street journal, accessed october 23, 2011.
- States tomson, bill, "as chicken prices rise for consumers, u.s. steps in to help farmers."
- Analyzes troianovski, anton, "sprint jumps into iphone frenzy- wsj.com." business news & financial news.
Related
- explanatory
- analytical
- opinion
- argumentative
- comparative
- Supply And Demandexplanatory essayRecent medical advances have greatly enhanced the ability to successfully transplant organs and tissue. Forty-five years ago the first successful kidney transplant was performed in the United States, followed twenty years later by the first heart transplant. Statistics from the United Network for Organ Sharing (ONOS) indicate that in 1998 a total of 20,961 transplants were performed in the United States. Although the number of transplants has risen sharply in recent years, the demand for organs far outweighs the supply. To date, more than 65,000 people are on the national organ transplant waiting list and about 4,000 of them will die this year- about 11 every day- while waiting for a chance to extend their life through organ donation (Yoakam 1). This figure, when looked at from an economic standpoint, exemplifies a case of supply and demand between organ donors and patients “with a diseased organ”. Just as there is a supply and demand in any given market, there are also complementary and substitute goods. Who decides who gets transplants and who doesn’t? This question implies that the organ market also needs to have various, effective allocation mechanisms. The organ market has complementary and substitute goods and can use various effective allocation mechanisms.
In this essay, the author
- Explains that recent medical advances have greatly enhanced the ability to successfully transplant organs and tissue.
- Explains that a person who receives an organ transplant requires several complementary goods, such as medical care and follow-up doctor's visits.
- Explains that allocation mechanisms in the organ market are frowned upon for their lack of morality. the president of the united states launched the national organ and tissue donation initiative in 1997.
- Opines that although morals can play a part in the organ market, economic principles are definitely present.
- Explains that in the organ market, a substitute good depends on what organ is being considered. people with diseased livers are particularly at risk because there is no medical alternative to transplantation.
991 wordsRead More - Supply And Demand In Economicsexplanatory essaySupply and demand is a tool used in Economics to describe, and show, how an economy functions. Supply and demand is used to show how prices are determined. Demand exists when an individual or group desires a good or service to the point where they are willing to pay or trade for it. The amount of a good or service purchased at a certain price is known as the quantity demanded. (Pg. 74) When the price of a good increases, consumers tend to respond by purchasing less of the good or something else, such as a substitute to that specific good. As price goes up, the quantity demanded goes up. When a price goes down, the quantity demanded goes up. The inverse relationship between the price and the quantity is known as the law of demand (p. 76). A table that shows the relationship between quantity demanded and price is known as a Demand schedule. (p. 76) The demand schedule is used to graph the Demand curve. The demand curve is the graph that shows the relationship of law of demand. The demand curve is often drawn as a straight line, with price on the Y-Axis and quantity demanded on the X-Axis. An increase in demand will show by a shift to the right of the demand curve, while a decrease in demand leads to a shift to the left. Market demand is the sum of all the individual quantities demanded at each price. Demand is increased when more individuals enter the market. An instance where more
In this essay, the author
- Explains that supply and demand is a tool used in economics to describe, and show, how an economy functions.
- Explains that demand is the amount of a good or service that producers are able and willing to sell. higher prices will lead to an increase in the quantity supplied.
- Explains the law of supply, which shows the relationship between the price of a good and how much of that good is supplied at the corresponding price.
- Explains that the supply curve shifts left when the cost of an input goes up, business taxes increase, or subsidies decrease, while a shift to the right can indicate lower taxes, the number of sellers increases, and more efficient technology.
- Explains that equilibrium is the point where supply and demand curves meet. when demand and supply are the same price, the entire stock of a good will sell.
- Explains that fluctuating markets and competition are good for the individual, and also bad. the oil business is an example.
- Explains that companies can lower their production costs by revamping the way a product is made by outsourcing jobs to countries like china.
- Explains that the labor market follows the same trends for a market that sells goods. the supply curve for each worker is different as each firm faces different opportunity costs and preferences.
- Explains that even when there is a recession and/or depression, the rules of supply and demand still play an effect.
- Explains that seasonal demand affects the supply and demand of certain goods. for most products there will be seasonal peaks and troughs in production and/or sales.
- Analyzes how americans will spend $17.3 billion on clothing, food, decorations, and other holiday items this easter, up from $16.4 billion last year. millennials spend more money on easter than other age groups.
2363 wordsRead More - Demand And Supply Research Paperexplanatory essayEverything we need is in our daily life is based on demand and supply. The country is based on the effects of both demand and supply. Whenever demand is affected it lead to shortage of various needs that are in demand and whenever supply is affected it leads to shortage of supply in the country’s economy. Moreover the things we need in our daily life is also affected on both demand and supply. Demand leads to the total quantity on goods or services that are needed to buy various commodities and supply is the quantity of goods and services business will make available to make profits. Thus in our daily life everything is based on the demand and supply from a small commodity to a large corporations. Moreover the company’s shares or bonds are also based on the effect off demand and supply. Lower the demand will be the lower price of goods and services and vice-versa. And higher the supply will lead to high price of goods and services. Demand lowers supply in a simple case price of each and every commodity will be affected by demand and supply. Whenever the demand change it will lead to change in the taste of the customer and will lead to change in the taste of fashion for customers, also lead to change in price of related goods i.e goods are not related with each other thus they are of different taste of preference is different. Change in demand will lead to change in number of buyers of economy because when demand changes or exceeds it leads to increase in number of commodity and whenever demand lowers it leads to increase in prices of goods and services. For instance – The price of canada’s farmland is rising on strong demand so that this will increase the number of buyers for various reasons and there will be effect on price of va...
In this essay, the author
- Explains that everything we need in our daily life is based on demand and supply. demand leads to the total quantity on goods or services that are needed to buy various commodities, while supply is the quantity of goods and services business makes available to make profits.
- Explains that the price of canada's farmland is rising on strong demand so that this will increase the number of buyers for various reasons.
- Explains that demand and supply are effected on basic reasons as every other country's economic transactions and various types of goods and services are affected by the forces of supply and demand.
- Explains that the director had real fallout yet reduced prices for agricultural commodities. this increased demand and supply issue to much extent as both are affected through same number of days.
814 wordsRead More - demand and supplyanalytical essayThe Keynesian theorists believe that the changes in the aggregate demand whether it is unanticipated or anticipated, have their impact on the real employment and output, not on the prices. This concept has been portrayed in the Philippines curves that indicate the inflation changing very slowly whenever the unemployment changes. They believe that the long run will eventually last long enough to matter in the end (King, 1993). The Keynesian theory of economics was named after the famous British economist John Maynard Keynes. John Maynard Keynes lived between the years 1883 to 1946. His ideas were reported to have been based on the circular flow of money. This subsequently gave rise to several interventionist economic policies during the period of the Great Depression. According to the school of thought, the spending of the person A contributes to the earning of the person B. In this case, when person A purchases services or goods from person B, and consequently, person B goes ahead to spend his money and thus contributing to the earnings of person C. Thus; Keynes believed that this circular system of the exchange of money will enable the economy function normally (King, 1993).
In this essay, the author
- Explains the company's strategy of splitting into two new entities to reward shareholders. exploration and production is a low-cost, integrated business that repositions it through increased earnings growth and enhancement of returns.
- Analyzes how conocophillips and its acquisition of burlington resources: the strategic fit? viewed on 07 march 2014 from http://www.dundee.ac.uk/cepmlp/gateway/files.php
- States king, r g., "will the new keynesian macroeconomics resurrect the is-lm model?"
- Explains the keynesian theory of economics, named after the famous british economist john maynard keynes.
697 wordsRead More - There are means to select the gender of one’s child and everyone should be allowed the option of using these means to select the gender of their child if that is what they want. People should always be allowed the choice. Gender selection should always permissible because restricting it would be limiting the ri...
In this essay, the author
- Analyzes how a woman's doctor might exclaim, "congratulations, you've gotten your baby girl!" after giving birth to her daughter. did she know by ultrasound that she was pregnant?
- Explains that a gynaecologist can easily perform an ultrasound and tell parents what gender to expect their child to be.
- Argues that fundamental rights cannot be restricted except for valid reasons. reproductive choice is a fundamental right.
- Opines that everyone should be allowed the option of using these means to select the gender of their child if that is what they want. gender selection should always be permissible because restricting it would limit the right to reproductive choice.
- Opines that they are sympathetic to people who choose not to select the gender of their children.
- Imagines a world where people were forced to decide the gender of their child. that would be restricting reproductive liberty because there is limitation on choice.
- Opines that it is an infringement of liberty to limit reproductive choice in this way.
- Argues that the most important argument against gender selection for non-medical reasons is that it is always sexist.
- Opines that it would be wrong to say that gender selection is always sexist; it does not follow that if i prefer x that i automatically dislike y.
- Opines that sexist assumptions about gender selection are false. however, there are reasons for choosing the gender of a child.
- Opines that allowing gender selection, even if it's sexist, is a better alternative in countries like india.
- Argues that restricting reproductive choice by prohibiting gender selection on the basis that it is sexist should not be seen as a relevant idea. gender selection should always be allowed regardless of the reason.
- Analyzes how dickens, b.m., harris, john, savulescu, julian, and dorothy c. wertz, "preconception sex selection: a question of consequences."
722 wordsRead More - The Innovating Iphone : A Game Changerargumentative essayUnveiled at one of its parent company presentations, the iPhone was given to us early January of 2007. Steve Jobs wanted to revolutionize the mobile phone industry with internet access mainstreamed on your mobile phone, a touch-screen that was capable of the “pinch-pull” methods of ease, piggybacked concepts that came from the iPod predecessor, along with all of the other features you could find on the current mobile phone technology network. Steve Jobs had hit a homer with his product! Upon its initial release, the phone was priced at around $600 if you wanted the eight gig model and a modest $500 for the four gig option if you signed on board with it’s exclusive service partner/provider AT&T.(1) Even though the skeptics said that the price was way too absurd to jump on board with, its initial hype was excessive. Consume...
In this essay, the author
- Explains that steve jobs promised to deliver something revolutionary: a massive upgrade to its already popular ipod. the birth of the iphone came to fruition.
- Explains that apple's iphone revolutionized the mobile phone industry with internet access, a touch-screen, piggybacked concepts from the ipod predecessor, and all of the other features.
- Explains that the iphone 3g was released in 2009, but with new technology the price was now $199 and $299 depending on the amount of memory.
- Compares the iphone 3g to the first iphone that sold one million in 74 days. the 3gs was introduced at the typical $199/$299 price.
- Explains that apple was ready to change everything up again when they came out with the iphone 4. the iphone 4 replaced the previous models with improvements like a fast a-4 processor, improved graphics, battery life, and improved gyroscope.
- Analyzes apple's ipod and iphone history. apple, n.d. web.
- Explains how to log in to library databases. what's in your iphone. access science.
- Explains that apple's iphone 5 was redesigned with new features, including a larger screen, faster processor, slimmer, and light-weight.
1722 wordsRead More - What Is The Relationship Between Supply And Demandcomparative essayIn this essay, I will be explaining the concept of supply & demand and the factors that will show the relationship between costs and revenues in International business and I will also show how a manager might use these factors in order to maximize profit and use examples and diagrams to explain.
In this essay, the author
- Explains how volkswagen competitors could shift the demand curve to the right if they raised their prices of their cars, which would increase the price and output, and a new equilibrium point would be shown.
- Explains how a manager will use factors to maximize profit in the long run.
- Concludes that managers have to use factors to benefit their supply and demand, decrease their costs, and increase the revenue.
- Explains the concept of supply & demand and the factors that will show the relationship between costs and revenues in international business.
- Explains that the supply curve can shift to the right, but a negative external factor can affect both the cost and revenue.
1001 wordsRead More - The Long Tail: A Modern Look at Supply and Demandopinion essayChris Anderson’s book title The Long Tail refers to a concept he created in 2004 to define how the curve of consumption of all sort of goods looks like today. In a world where abundance is the mainspring, the Long Tail is a curve in which the tail is very long – it actually never comes to zero – in relation to its head. This, in other words, represents the new phenomenon of consumption, boosted mainly by the Internet, where basically hits are being replaced by niches, meaning that a far larger number of products are available and being sold – and although each product sells less it is still being sold. “A very, very big number (the products in the Tail) multiplied by a relatively small number (the sales of each) is still equal to a very, very big number. And, again, that very, very big number is only getting bigger”, says Anderson (24).
In this essay, the author
- Describes chris anderson's book title the long tail as a concept he created in 2004 to define the curve of consumption of all sorts of goods.
- Analyzes anderson's argument that the long tail is based on freedom of production and consumers' demand.
- Describes mallu magalhaes, a brazilian songwriter and singer who saved her own expenses to record four songs and uploaded them on her myspace page. she has already recorded two albums, the latest produced by the famous bossa nova musician.
- Opines that offering convenience is key strategy for a company that wants to succeed in the new scenario.
- Opines that bricks and mortar companies must adapt to the new culture to survive. anderson points out the democratization of tools of production, distribution, and recommendations.
- Analyzes how anderson's arguments reflect what we can easily identify today. consumers are now the ones who decide what, where, and how to buy.
- Opines that corporations are increasingly trying to gain their space in the long tail culture to take advantage of the opportunities its forces bring.
- Opines that the long tail is a global phenomenon because the internet reshapes companies-clients relationships, but its performance depends on each country's economy, availability of resources, culture, and even social scenario.
1684 wordsRead More - The Biofuel Problemanalytical essayMost people can easily relate a price increase of corn products when every year, more corn is diverted to refineries. However, corn used for general human consumption in the form of starches, sugar, syrups, cooking oils, etc. only make up 12 to 15 percent of the crop. Prior to the ethanol boom, seventy-five percent of all the corn produced in the United States fed livestock consisting primarily of cows, hogs, and chickens (Magness and Markle Par 9). Faced with rising feed prices every year due to the short supply and high demand of corn, livestock farmers have passed those costs on to the consumer. Consumers are directly affected, whether at the checkout line with groceries or sitting down at a re...
In this essay, the author
- Argues that the united states needs to abandon detrimental ethanol legislation to safeguard food stocks and remove this destructive fuel from the pumps.
- Explains that corn used for general human consumption only makes up 12 to 15 percent of the crop. before the ethanol boom, livestock farmers passed those costs on to the consumer.
- Explains that biofuel refineries are in full swing, and environmentalists have come to question just how much "greener" is ethanol.
- Explains that ethanol is a very destructive fuel. lawn equipment has taken the brunt of the damage inflicted by it in recent years.
- Argues that the united states needs to abandon detrimental ethanol legislation to safeguard food stocks and remove this destructive fuel from the pumps.
750 wordsRead More - Supply and Demandanalytical essaySupply 1 The rubber supply in Japan is at an all time low. The article chosen discusses how the low supplies of rubber are not typical for the time of year. Tokyo rubber or TOCOM is the Tokyo Commodity Exchange which regulates the rubber market in Japan. A rally was held recently which was the largest in years because of the concerns about low supplies and historically low rubber stocks.
In this essay, the author
- Explains that rubber supplies have been low due to a delay in shipments from thailand, which is the world's largest manufacturer and exporter of natural rubber.
- Explains that production returns to normal by beginning of may, but buyers are still not getting enough shipments.
- Analyzes how goodyear saves money by switching to natural rubber because the new tire may not hold up as well as the old and consumers get into accidents. the company may face larger expenses with a lawsuit than continuing with synthetic rubber.
- Explains that supply, price and demand (milligan, coulton, york, & register, r.); new york.
- Explains how the low supplies of rubber in japan are not typical for the time of year.
- Explains that rubber stocks in japan have decreased to the lowest level in forty years due to short supply and high oil costs. manufacturers are considering shifting to natural rubber from expensive synthetic rubber.
693 wordsRead More