Premium Essay

Eco 365 Week 2 Paper

In:

Submitted By alexpaul64
Words 1240
Pages 5
Microeconomics and the Laws of Supply and Demand

The Laws of Supply and Demand
The laws of supply and demand are detrimental to our economy today. It is what actually drives our market economy. Buyers determine the quantity produced of a particular product based on their demand for that product and the price he or she is willing to pay for it. Supply is then created by producers when and if they are willing to accept the current rate for which they will get from production of that product. At the end of the day, price is what drives supply and demand.
“The law of demand states that, if all other factors remain equal, the higher the price of a good, the less people will demand that good. In other words, the higher the price, the lower the quantity demanded. The amount of a good that buyers purchase at a higher price is less because as the price of a good goes up, so does the opportunity cost of buying that good. As a result, people will naturally avoid buying a product that will force them to forgo the consumption of something else they value more” (Heakel, 2014).
“Like the law of demand, the law of supply demonstrates the quantities that will be sold at a certain price. But unlike the law of demand, the supply relationship shows an upward slope. This means that the higher the price, the higher the quantity supplied. Producers supply more at a higher price because selling a higher quantity at a higher price increases revenue” (Heakel, 2014).
The simulation exercise gave a real life scenario regarding a property management company named GoodLife that owned and leased apartments throughout the United States, focusing on a particular city, Atlantis, which was in the middle of an industrial growth.
A Shift in the Demand Curve
GoodLife began with 2,000 apartments in the city Atlantis. They had a high vacancy rate with overpriced apartment rates. The

Similar Documents

Premium Essay

Eco 365 Week 2 Reaction Paper

...Joe should say that he could not have ratified, because this requires that he have regained his normal mental abilities. Maybe Sue would have a better opportunity if she argued that Joe's reasonable time for disaffirmance has already passed. Under the circumstances, it is unlikely whether that argument would work. Joe could claim intoxication was a key factor of getting into the contract, but the fact that was voluntary might affect the outcome of the dispute. Lonely Jean would be able to disaffirm the contract but as the coat counts as a necessary based on the details provided, she will have to pay $80 that counts as a reasonable value for the coat. It seems unlikely that Willy can disaffirm. Perhaps one could argue that he disaffirmed...

Words: 403 - Pages: 2

Premium Essay

Get Online Help with Ur Assignment Ashford a+Material

...http://homeworktimes.com/downloads/acc-202-complete-course-acc-202-entire-course/ http://homeworktimes.com/downloads/acc-206-entire-course-new/ http://homeworktimes.com/downloads/acc-206-new-week-1-assignment-chapter-one-problems/ http://homeworktimes.com/downloads/acc-206-new-week-2-assignment-chapter-two-three-problems/ http://homeworktimes.com/downloads/acc-206-new-week-2-journal-institute-management-accounting/ http://homeworktimes.com/downloads/acc-206-new-week-3-assignment-chapter-four-five-problems/ http://homeworktimes.com/downloads/acc-206-new-week-3-journal-hershey-company/ http://homeworktimes.com/downloads/acc-206-new-week-4-assignment-chapter-six-seven-problems/ http://homeworktimes.com/downloads/acc-206-new-week-5-assignment-chapter-eight-problems/ http://homeworktimes.com/downloads/acc-206-new-week-5-assignment-final-paper/ http://homeworktimes.com/downloads/acc-212-financial-accounting/ http://homeworktimes.com/downloads/acc-250-complete-course-acc-205-entire-course/ http://homeworktimes.com/downloads/acc-290-complete-course-acc-290-entire-course/ http://homeworktimes.com/downloads/acc-291-complete-course-acc-290-entire-course/ http://homeworktimes.com/downloads/acc-340-entire-course-acc-340-complete-course/ http://homeworktimes.com/downloads/acc-400-complete-course-acc-400-entire-course/ http://homeworktimes.com/downloads/acc-407-entire-course/ http://homeworktimes.com/downloads/acc-455-complete-course/ http://homeworktimes.com/downl...

Words: 3197 - Pages: 13

Premium Essay

Eco 365 Week 2 Lt Organization Industry Overview

...This archive file includes ECO 365 Week 2 Learning Team Organization Industry Overview Introduction For many years, people across the United States has sought out ways in which to make money, and at the same time, provide for people a place where they can go and buy the necessities they need. Entrepreneurs from across theUnited Stateshad ideas that seemed logical, but in actuality were not. Stores, business, and companies have been built, only to last for a short time. Not every store or business built has been successful. Business - General Business Individual SDLC Value Paper Write a 700- to 1,050-word paper that explains the components of a formal SDLC process.  ·  Includea discussion of the basic elements of the SDLC.  ·  Identify types of employees involved in the SDLC process and their roles (project manager, system analyst, developer). Include a minimum of 2 references relevant to the assignment, in addition to the textbook. Format your paperconsistent withAPA guidelines. Individual Work-Related Project Analysis, Part I Writea 1,400- to 2,100-word paper that analyzes a work-related project using systems analysis for a selected business system at the departmental or divisional level from your workplace, an organization, or a case study (which doesn’t have to be a health care facility). ·  Includea discussion of the information-gathering techniques and design methods used...

Words: 354 - Pages: 2

Premium Essay

Microeconomics and the Laws of Supply and Demand

...Microeconomics and the Laws of Supply and Demand In this paper we will be discussing the law of supply and demand. First of all, what is demand curve? Demand curve is the graphical representation of demand that shows the quantities consumers are able and willing to buy at various prices. A normal demand curve is downward sloping in accordance with the law of demand. Supply curve is also a graphical representation of supply that shows the quantities producers are able and willing to sell at various prices. A normal supply curve is upward sloping in accordance with the law of supply. Equilibrium is a state of balance where dynamic forces have canceled each other out and there is no tendency for change. The laws of supply and demand are the ones that determine our economy today. During the simulation it showed that the numbers affect dramatically towards the economy. “ For example, if the demand curve shifted to the left, it would show a decrease in demand from consumers and cause fewer apartments to be filled.” (Supply and demand Simulation, Linda R, July 21,2014) In this situation what happened is that due to a widespread desire of having property ownership and been forced from the management company to lower their prices for them to compensate. Equilibrium price becomes lower because the demand decreased, while the supply and the quantity remained the same. “If the supply curve were to shift to the right, it would indicate an increase in available apartments rent.” (Supply...

Words: 748 - Pages: 3

Premium Essay

Eco 365

...ECO/365 Principles of Microeconomics Professor Alex Gialanella December 9, 2013 Good APA compliant cover In this paper I am going discuss the simulation I viewed in Week 2, which is about a city called Atlantis. It is a well maintained and has everything to offer its residents/tenants a decent number of parks, close to highways, clean litter free sidewalks and a low crime rate. The GoodLife Management is the property management firm that handles seven apartment complexes in the city of Atlantis. They have over 2,000 two-bedroom apartments and only a 28% vacancy rate, it’s very essential to use the supply and demand curve to determine the equilibrium in the market. It is also important to understand movements along the shift of the demand and the supply curves to determine how the equilibrium is established after the shift in curves. Supply and Demand are the most used words in the world of economics today, according to Colander , D. (2010). Supply and demand is a critical part of microeconomic and macroeconomics and it assist in determining the economy. This is an excellent, clear intro – good level setting and use of reference As for the principles of microeconomic shown in the simulation is supply and demand. In the simulation they wanted to lower the cost of rent in order to lower the percentage of vacant apartments to 15%. This would raise the revenue for the management firm, at one point the employment rate, population and housing demand...

Words: 1067 - Pages: 5

Premium Essay

Gadgets

...The Negative and Positive Ecological Impacts of Technology Introduction In today's society more people are working longer hours and utilizing more technology in their everyday life. As a result of these longer hours and increased use of technology, more energy is being consumed. (Hayden and Shandra 575) The impact that this is having on the environment is substantial in both negative and positive ways. It is hard to deny the benefits modern technology has produced for the world, in industry and in everyday life. With more and more technological breakthroughs, there have been many positive ecological impacts. However, it is also hard to deny that there are considerable negative impacts as well. Supporters of a work reduction scheme maintain that the reduction in hours will have a positive effect on the environment and the raw materials that are used on a daily basis. (Hayden and Shandra 576) Though the argument that a reduction in hours will result in a better quality of life is largely agreed upon, the theory that a reduction in hours will reduce the negative impacts on the environment is still one of contention as there is no concrete evidence to back it up. (Hayden and Shandra 576) To counter this theory, there are those who argue that a reduction in hours will not result in a redution in damage to the environment. Each year, technology is making advances in producing low energy products that will reduce the damage to the environment. It is argued that with these advances...

Words: 3416 - Pages: 14

Premium Essay

Eco 265 Final Studyguide

...ECO/365 Final Examination Study Guide This study guide prepares you for the Final Examination you complete in the last week of the course. It contains practice questions, which are related to each week’s objectives. Highlight the correct response, and then refer to the answer key at the end of this Study Guide to check your answers. Use each week’s questions as a self-test at the start of a new week to reflect on the previous week’s concepts. When you come across concepts that you are unfamiliar with, refer to the Student Guide for that particular week. Week One: Fundamentals of Microeconomics Objective: Differentiate between macroeconomics and microeconomics. 1. Macroeconomics is  the study of individual choice and how that choice is influenced by economic forces the study of the pricing policies of firms and the purchasing decisions of households the study of aggregate economic relationships an analysis of economic reality that proceeds from the parts to the whole 2. The invisible hand theorem comes from microeconomics macroeconomics sociology political science Objective: Analyze the effect of changes in supply and demand on the equilibrium price and quantity. 3. The law of demand states that the quantity demanded of a good is inversely related to the price of that good. Therefore, as the price of a good goes  up, the quantity demanded goes up up, the quantity demanded goes down down, the quantity demanded goes down down, the quantity demanded...

Words: 1923 - Pages: 8

Premium Essay

Competitive Strategies and Government Policies

...Competitive Strategies and Government Policies ECO/365 Principles of Microeconomics October 28, 2013 Feedback from Instructor (Published: Sat 11/02/2013 07:04 PM MST) Earned Points: 9.6/10 Comments: Week 5: Team Paper Assignment Grading Rubric =========================================================== CONTENT 70% Address the following topics: (1) New companies entering the market, mergers, and globalization, on pricing and the sustainability of profits: Identify the type of merger activity in your industry or one with which you are familiarhorizontal, vertical, or conglomerateand explain why you made that choice.: Content Grade / Comments: Good, meets expectations. Good amount of detail about auto industry globalization and competition. (2) Current and expected government policies and regulations, including taxes and regulations in place to address issues related to externalities Content Grade / Comments: Mostly good. You could have gone into more detail about the incentives created and the (unintended) consequences of regulations and how this impacts decisions made by the firm. (3) Global competition on the decisions made by management with regards to change in labor demand, supply, relations, unions, and rules and regulations in your chosen industry Content Grade / Comments: Good, but this section seems more hypothetical and less applied. You should have given more details related to banking, but overall good points. (4) Recommend how the industry you chose may respond...

Words: 1857 - Pages: 8

Premium Essay

Wal-Mart Analysis

...Wal-Mart Analysis Axia University of Phoenix ECO 365 May 04, 2013 Wal-Mart Analysis Wal-Mart is one of the biggest retailer stores in the United States and throughout the world. Since 1962 Wal-Mart has grown from a small business into a successfully large business. For Wal-Mart to have achieved such success Wal-Mart has gone through market structure change, price change, productivity, and many other changes and challenges. Wal-Mart’s first priority is to have lower prices around the country and worldwide. To understand the success of a business one would need to have its market analysis. Market analysis includes productivity, market structure, price, technology, competitors, wages, benefits, supply and demand, etc… Wal-Mart is to be considered a perfect competition market structure. Wal-Mart is known throughout the United States as well as worldwide (“Wal-Mart,”2-12). Because Wal-Mart is a retail store providing goods and services to the consumers that can also be provided by another store and is one of the reasons Wal-Mart is considered a perfect competition market. There are retail stores all over that offer the same or similar products that Wal-Mart offers and all products give or take a few cents provide similar pricing; however not all stores offer similar services such as optical, pharmacy, automotive, making Wal-Mart a one stop kind of shop. These types of retail businesses are relatively easy to enter and exit the market without hardship. Wal-Mart...

Words: 2036 - Pages: 9

Premium Essay

Market Research Analysis

...Competitive Organization and Product in Organization ECO/365 Market Analysis and Recommendations Team B is a strategic planning group assigned to complete a competitive market analysis of the smart phone industry in preparation for our company’s potential new smart phone product. This paper is intended to summarize the research findings on the current leading competitor in the market, the iPhone s5 and our recommendations on how to successfully compete and maximize profit in the smart phone market. History of Apple Apple Computers was founded in April 1976 by Steven Jobs and Steven Wozniak. The company built computers and operating systems that were revolutionary for the industry. The company has had some competition, and therefore has had some ups and downs financially. Top management in the company has changed over the years and the company had difficulty competing with other computer companies. However, in the late 90s and early 00s the company had an increase in profits because of innovative products. In 2001, the company introduced the iPod. This little device was just a small music player. It played and stored music files that the customer could download on the Internet. Apple Inc. dropped the “computer” out of its name in 2007; the same year it introduced the iPhone (Sanford, 2013). The first phone made by the company was a success. In the following years the company continued to improve its product; introducing the iPhone 3g, iPhone 3gs, then the iPhone4, iPhone4s...

Words: 2339 - Pages: 10

Free Essay

Sustainable Consumption

...interscience.wiley.com) DOI: 10.1002/sd.394 Sustainable Consumption: Green Consumer Behaviour when Purchasing Products William Young1*, Kumju Hwang2, Seonaidh McDonald3 and Caroline J. Oates4 1 Sustainability Research Institute, School of Earth and Environment, University of Leeds, UK 2 Department of Business Administration, College of Business Administration, Chonnam National University, South Korea 3 Aberdeen Business School, Robert Gordon University, UK 4 Management School, University of Sheffield, UK ABSTRACT The ‘attitude–behaviour gap’ or ‘values–action gap’ is where 30% of consumers report that they are very concerned about environmental issues but they are struggling to translate this into purchases. For example, the market share for ethical foods remains at 5 per cent of sales. This paper investigates the purchasing process for green consumers in relation to consumer technology products in the UK. Data were collected from 81 self-declared green consumers through in depth interviews on recent purchases of technology products. A green consumer purchasing model and success criteria for closing the gap between green consumers’ values and their behaviour are developed. The paper concludes that incentives and single issue labels (like the current energy rating label) would help consumers concentrate their limited efforts. More fundamentally, ‘being green’ needs time and space in people’s lives that is not available in increasingly busy lifestyles. Implications for policy...

Words: 7596 - Pages: 31

Free Essay

School of Management

...Fashion Industry Analysis From the Perspective of Business Model Dynamics Author: Lisa Gockeln University of Twente P.O. Box 217, 7500AE Enschede The Netherlands ABSTRACT The fashion industry is a dynamic and volatile place, continuously exposed to macro-environmental factors that trigger fashion business models to change. The fast fashion model is currently at the forefront of the apparel market casting questions on whether its underlying philosophy is about to change as well. Therefore, the purpose of this study is to identify external drivers that might lead to such dynamic changes in the fast fashion model. Moreover, it will be investigated whether these may allude to a possible convergence to the newly emerged slow fashion model which is currently trying to penetrate the fashion market. The international retailer Zara has served as fast fashion representative for this analysis and has been examined for business model adjustments, which might have been triggered by macroenvironmental factors. It was found that especially social, environmental and technological factors have influenced developments in the fast fashion model and that it has indeed adopted slow fashion principles in some of its building blocks to respond to such emerging trends. The future of the fashion industry appears to be tailored by such externalities, continuously reshaping the fast fashion model to eventually arrive at a version that brings a long-lasting competitive edge. However...

Words: 17049 - Pages: 69

Premium Essay

Consumer Preference While Buying Tablets

...guidance, which helped me in completing the project through various stages. I would also like to express my special gratitude to all the respondents without who this project would not have been possible, thank you for sparing your valuable time in filling my questionnaire. Deepika Sharma Contents Introduction ............................................................................................................................................ 3 Different operating systems for tablets .............................................................................................. 4 Review of Literature .............................................................................................................................. 6 Research Paper Reviews: ................................................................................................................... 6 Article Reviews: ............................................................................................................................... 10 Objectives of our project ...................................................................................................................... 12 Research Design & Methodology ........................................................................................................ 13 Design: ............................................................................................................................................. 13 Methodology:...

Words: 6533 - Pages: 27

Free Essay

A Feasibility Study on the Commercialization of the Coconut Cream Pie

...CHAPTER 1 INTRODUCTION Brief Background of the Study The Philippines remains as the world leading supplier of traditional coconut products. The Industry is also finding new products and uses for the “Tree of Life”: Coco Peat, geotextiles, activated carbon and virgin coconut oil. The coconut industry is a dominant sector of Philippine agriculture composes of 12 Million Hectare of farm lands, 3.25 Million is devoted to coconut and 68 out of 79 provinces are coconut areas. One of the provinces that have an abundant supply of coconut is Tagaytay. Coconut industry gives an opportunity for the locals to create and develop a lot of products that is made from coconut. The coconut is known for its great versatility as seen the many domestic, commercial, and industrial uses of its different parts. Coconuts are part of the daily diet of many people, which lead to the reinvention of an ordinary Cream Pie into Coconut Cream Pie. The original ingredients of Coconut Cream Pie are package refrigerated pie crusts sugar, cornstarch, egg yolks, butter, sweetened flaked coconut, vanilla extract, and whipping cream. Marisol Amparo Habelito, an entrepreneur, comes up with the idea on how to make the procedures of the Coconut Cream pie become easier and affordable. Instead of using expensive ingredients, Marisol used crushed biscuits, filling of sweetened strips of coconut meat and heavy cream on top as alternative ingredients. The Coconut Cream Pie by Marisol Amparo Habelito was initially sold...

Words: 8008 - Pages: 33

Premium Essay

Effects of Cloud Computing in the Global Business Environment

...Effects of Cloud Computing in the Global Business Environment Table of Contents INTRODUCTION…………………………………………………………………………………………………….…..............3-4 CLOUD COMPUTING REDUCTION IN COST……………………………….………………………………….....….4-7 CLOUD COMPUTING AND THE CHANGE OR CREATION OF SERVICES ………………….………….7-10 ECONOMIC IMPACT OF CLOUD COMPUTING………………………………………..………………..……….10-12 COMPARISON OF COMPANIES BEFORE/AFTER CLOUD COMPUTING…….………………………12-15 US ENERGY AND CLIMATE POLICY………………………………………………………………………………………15 CLOUD COMPUTING PROVIDERS………………………………………………………………………………….....16-21 Salesforce.com……………………………………………………………………………………………………………....16-17 Amazon-Web Services…………………………………………………………………………………………….....17-19 Cisco Systems…………………………………………………………………………………………………...…..19-21 CLOUD AND INDUSTRY’S FUTURE………………………………………………………………………….……... 21-22 CONCLUSION…………………………………………………………………………………………………….……...……. 22-23 EXHIBITS…………………………………………………………………………………………………………………….…...…. 24 Annual Financials for Salesforce.com…………………………………………………………………..……..24-26 Annual Financials for Amazon-Web Services……………………………………………………….….27-29 Annual Financial for Cisco Systems………………………………………………………………………30-32 Financial Ratios……………………………………………………………………………………………………………….……….33 Grow Customer Base……………………………………………………………………………………………………………….33 Grow Market Share………………………………………………………………………………………………………….……..33 Salesforce Historical Stock Chart……………………………………………………………………………..………………34 ...

Words: 6829 - Pages: 28