...Microeconomics and the Laws of Supply and Demand Terry Cerami ECO/365 September 21, 2015 David Flesh Microeconomics and the Laws of Supply and Demand Utilizing the supply and demand simulation ("University Of Phoenix", 2014), I will illustrate two macroeconomic and two microeconomic principles demonstrated in the simulation and expound on why these principles are categorized as microeconomic or macroeconomic. Also, one shift of the demand curve and one shift of the supply curve from the simulation will be identified with explanations for the shifts. Further, I will analyze the influence on decision making in correlation with quantity and the equilibrium of price and how these concepts of demand and supply can be pragmatic in everyday business or within the current work environment. Finally, I will explain how price elasticity of demand has an immense impact on products pricing strategy and its purchase from the consumer. Macroeconomic and Microeconomic Principles The first macroeconomic principle demonstrated within the Supply and demand Simulation is Price Ceilings. Price Ceilings ensue through legislation as laws are enacted establishing a lawful ceiling of how high the cost of a product can be ("Price Ceilings", n.d.). When a price ceiling is established, there is further demand than what is available at the equilibrium price. This is a result of there being a sufficient supply in quantity of demand than supplied quantity. For example, in the simulation the...
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...Lanette Polak University of Phoenix MMPL 501/ Forces Influencing the 21st Century Mr. Frank Kingsland May 21, 2011 |Concept |Personal Example |Reference to Concept in Reading | | | | | |Microeconomics |In the natural gas market, gas is in supply all year round. |Microeconomics is a measure of | |The branch of economics that analyzes the |Natural gas to heat people’s homes is in increases in demand |specific economic units, which are an | |market behavior of individual consumers and|in the winter time. The supply could eventually run low |individual industry, firm, or | |firms in an attempt to understand the |depending upon where Shell gets its gas from. Natural gas is |household. | |decision-making process of firms and |in less demand in the summer time. There is no control over if| | |households. It is concerned with the |the price of a therm may go up anytime with People’s Gas. I |We measure | |interaction between individual buyers and |worked for Just Energy for one week last year in June and quit|The price of a specific product, the | |sellers and the factors that...
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...F.Y.B.A. Paper – I Economic Theory (Micro Economics-I) SECTION – I Module 1 : Introduction Meaning, nature, scope, significance and limitations of micro economics. Ceteris Paribus – use and significance. Concept and types of equilibrium : stable, unstable, static and dynamic equilibrium – partial equilibrium and general equilibrium, positive economics and normative economics, managerial economics. Basic concepts – wealth, welfare and scarcity. Basic tools of economics analysis (equations and functions, graphs and diagrams, slope and intercepts) Module 2 : Consumers Behaviour and Demand Marishallian Approach : Equi-marginal utility, Law of demand – Determinants of demand. Elasticity of demand and its measurement. Price – Income – Cross and Promotional elasticity of demand. Consumer’s Surplus. Hicksian Approach : Indifference curves – properties of Indifference Curve, Consumer’s Equilibrium, Price effect, Income effect and substitution effect – Derivation of demand from Price Consumption Curve (PCC) – Giffen’s paradox. Samuelson Approach : Revealed Preference Theory. Module 3 : Production and Cost Analysis Concept of production function : short run and long run – Cobb – Douglass production function. isoquants – iso-cost line – producer’s equilibrium. Law of variable proportion and Law of returns to scale – Economies of scale – Economies of scope. Concepts of costs : Money and real cost, Opportunity cost, Social cost, Private cost – Derivation of short run and long run cost curves–...
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...and Demand Simulation Leticia Shamma ECO/365 July 24, 2013 Karl Bitter Supply and Demand Simulation The Supply and Demand Simulation was very insightful. I related to it since I am in property management although I did have some difficulty with the reasoning. The simulation was designed to help us understand demand and supply as well as the effect of a price ceiling on a specific quantity as well as the quantity supplied. According to our textbook, Microeconomics is the study of individual choice and how that choice can be influenced by economic forces. In this simulation, the city of Atlantis has a property management company by the name of Goodlife Management who is responsible for leasing two bedroom apartment homes that are in high demand. The two microeconomics principles are the supply of the two-bedroom apartments and the demand for renting them. Macroeconomics is the study of the economy as a whole. It considers the problems of inflation, unemployment, business cycles, and growth. The macroeconomic principles that are a factor is the increase in the population and growth of the city that has caused an increase in the demand of the apartments. The increase of the population had to deal with the economy because of a new business opening up and therefore creating job opportunities. Since the city of Atlantis ‘employment rate is rising the demand for the apartments will increase and decrease as is the concept of macroeconomics. The simulation accurately details what...
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...in an economic decision. The economic perspective also incorporates the view that to achieve a goal, people make decisions that reflect their purposeful self-interest. The third feature considers that people compare marginal benefits against marginal costs when making decisions and will choose the situation where the marginal benefit is greater than the marginal cost. You will develop a better understanding of these features as you read about the economic issues in this book. Economics relies heavily on the scientific method to develop theories and principles to explain the likely effects from human events and behavior. It involves gathering data, testing hypotheses, and developing theories and principles. In essence, economic theories and principles (and related terms such as laws and models) are generalizations about how the economic world works. Economists develop economic theories and principles at two levels. Microeconomics targets specific units in the economy. Studies at this level research such questions as how prices and output are determined for particular products and how consumers will react to price changes. Macroeconomics focuses on the whole economy, or large segments of it. Studies at this level investigate such issues as how to increase economic growth, control inflation, or maintain full employment. Studies at either level have elements of positive economics, which investigates facts or cause-and-effect relationships, or normative economics, which incorporates...
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...Marginal Utility Theory………………………….3 1.2 Development of Marginal Utility Theory…………………..3 2. The analysis of marginal utility theory...4 2.1 The definition of marginal utility theory………...…………4 2.2 The understanding of marginal utility theory………...……5 2.3 The main influences on marginal utility……….……………5 2.4 The paradox of water and diamonds………………………..8 3. Discussion on marginal utility theory….8 3.1 The limitation of marginal utility theory………………….8 4. Conclusion………………………………..9 5. Reference………………………………..10 1. Introduction 1.1 Origin of Marginal Utility Theory The origin of marginal utility theory can date back to Aristotle. It is widely considered that Aristotle was the first man to bring forward the idea of value in use. He pointed out that goods gain their value from personal utility, scarcity and costs. And an increase in a specific good will bring an decrease in value and the value can even become a negative one. This is the original form of the principle of diminishing marginal utility. The term marginal utility was first used in this connection by the Austrian Wieser. (Marshall Alfred 1920 Principles of economics chapter Ⅲ.Ⅲ ,p14) Adopted by Prof. Wicksteed, it corresponds to the term Final used by Jevons. His list of anticipators of his doctrine is headed by Gossen, 1854. (Marshall Alfred 1920 Principles of economics chapter Ⅲ.Ⅲ ,p14) Not until the 18th century, did Adam Smith base a system of political economic entirely on marginal utility calculation...
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...problems. Next, we examine the specific methods economists use to examine economic behavior and the economy, including distinguishing between macroeconomics and microeconomics. We then look at the economizing problem from both an individual and societal perspective. For the individual we develop the budget line, for society the production possibilities model. In our discussion of production possibilities, the concepts of opportunity costs and increasing opportunity costs, unemployment, growth, and present vs. future possibilities are all demonstrated. Finally, in the Last Word, some of the problems, limitations, and pitfalls that hinder sound economic reasoning are examined. The Appendix to Chapter 1 provides an important introduction to graphical analysis. While this will be review material for most students, for some this may be new. Instructors are strongly urged to confirm that their students understand this section before proceeding. The software supplement can provide effective remedial help for those students who are not familiar with graphical analysis, or just need a refresher. WHAT’S NEW There is a new learning objective for this chapter: Explain the individual’s economizing problem and how trade-offs, opportunity costs, and attainable combinations can be illustrated with budget lines. The definition of Macroeconomics has been broadened to reflect all of the issues in the field. The “Consider This” discussion in the Individual’s Economizing Problem section...
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...UB18416BBU26251 INTRODUCTION TO MICROECONOMICS A Final Thesis Presented to AIU The Academic Department Of the School of Business and Economics In Partial Fulfillment of the Requirements For the Bachelors Degree in Business Administration Atlantic International University (AIU) @@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ @@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ @@ INTRODUCTION TO MICROECONOMICS @@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ @ Emmanuel Kasozi Atlantic International University (AIU) – School of Business and Economics August 15, 2012 School work, Micro economics @@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ @@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ @@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ Atlantic International University (AIU) CONTENTS 1 1.0. Microeconomics and Business Markets an overview 2.0. Economics is defined 3.0. Opportunity cost 4.0. 3 Production curve 2 5.0. Microeconomics is defined 6.0. Business Markets 7.0. Market 8.0. 8 Assumptions of markets 3 Demand, Supply and market Equilibrium 9.0. 10 Demand 10.0. Factors influencing Demand 11.0. Demand curve 12.0. Ceteris Paribus 4 13.0. Supply 14 14.0. The law of supply 15.0. Supply schedule 16.0. Supply curve 17.0. Factors influencing supply Atlantic International University (AIU) 18.0. Equilibrium 19.0. Reference 21 MICROECONOMICS AND BUSINESS MARKETS An...
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...EcoNomIcs mIcroEcoNomIcs macroEcoNomIcs Course Description Effective Fall 2012 AP Course Descriptions are updated regularly. Please visit AP Central® (apcentral.collegeboard.org) to determine whether a more recent Course Description PDF is available. The College Board The College Board is a mission-driven not-for-profit organization that connects students to college success and opportunity. Founded in 1900, the College Board was created to expand access to higher education. Today, the membership association is made up of more than 5,900 of the world’s leading educational institutions and is dedicated to promoting excellence and equity in education. Each year, the College Board helps more than seven million students prepare for a successful transition to college through programs and services in college readiness and college success — including the SAT® and the Advanced Placement Program®. The organization also serves the education community through research and advocacy on behalf of students, educators, and schools. For further information, visit www.collegeboard.org. AP Equity and Access Policy The College Board strongly encourages educators to make equitable access a guiding principle for their AP programs by giving all willing and academically prepared students the opportunity to participate in AP. We encourage the elimination of barriers that restrict access to AP for students from ethnic, racial, and socioeconomic groups that have been traditionally underserved. Schools...
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...Professor Owen R. Phillips University of Wyoming Ross Hall 124 COURSE SYLLABUS FOR INTERMEDIATE MICROECONOMICS 4020 Course Description and Prerequisites Economics is broadly defined as a way of thinking about problems of allocation. This course entails the use of intermediate microeconomic theory in the analysis of problems facing decision-makers, not only in business, but also in government and other nonprofit organizations. Intermediate microeconomic theory can be described as the theory of choice. It has application to all decision problems. Specific theoretic tools are developed and applied to real world settings in order to illustrate optimal decision guidelines. The prerequisites for this course are a beginning economics class in microeconomics and a basic understanding of algebra and geometry. Required Textbook Required: Pindyck, Robert S. and Rubinfeld, Daniel L., Microeconomics, Third Edition, Prentice-Hall, 1995, ISBN 0-02-395900-2. Determining Your Grade During the course there are two “midterm” examinations. At the end of the course there is a comprehensive final examination; in the final exam there is some emphasis on the material following the second examination. All of the exams consist of multiple choice questions. Questions will be of a problem-solving nature much like those assigned in the homework. The homework questions are excellent preparation for the examinations. Answers to many of these questions are worked in the...
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...|scarcity| ANS: E PTS: 1 DIF: 2 NAT: Financial theories, analysis, reporting, and markets LOC: Scarcity, tradeoffs, and opportunity cost TOP: Economics | Scarcity and Choice 4. Which of the following disciplines is not a social science? a.|psychology| b.|mathematics| c.|economics| d.|political science| e.|sociology| ANS: B PTS: 1 DIF: 1 NAT: Financial theories, analysis, reporting, and markets LOC: The study of economics, and definitions of economics TOP: Economics | Scarcity and Choice 5. What does economics have in common with sociology? a.|Economics and sociology ask fundamentally the same questions.| b.|Economics and sociology use the same tools to analyze issues.| c.|Both are social sciences.| d.|What and how economists study is very similar to what and how sociologists study.| e.|Explaining something about society is only a secondary purpose in both areas.| ANS: C PTS: 1 DIF: 2 NAT: Financial theories, analysis, reporting, and markets LOC: The study of economics, and definitions of economics TOP: Economics | Scarcity and Choice...
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...Elasticity Paper: Substitute Products vs. Complement Products Annette Nunnally, Bobby Whitfield, Dwayne Brown, Reginald Lockhart ECO 365 Principles of Microeconomics February 24, 2015 Mr. Rick Pretzsch Elasticity Paper: Substitute Products vs. Complement Products Products or services are introduced into the market with the intention of fulfilling the desires or needs of a specific group. Most of the products need another product to function properly. The use of a printer requires an ink cartridge to be purchased in order to function. The higher the printer usage the more ink is consumed. Also, the free marketplace gives manufacturers the ability to create or produce goods or services serving the same purposes. This now creates a competitive market that is beneficial to the consumer. Economist use terms such as complements and substitutes to explain these policies. Substitutes A substitute product or service is basically another product or services that could be used for the same purpose (Economics Help, 2013). Usually a substitute product is less expensive thus creating a positive elasticity into the market. With the price increase of a product, the substitute product will become more appealing to the consumer. Colander (2013) compared the Big Mac and the Whopper, when the price of the Big Mac goes up people shift to the Whopper as a substitute product. An economic substitute applies to the sports world also, when a team tries to hire a high profile player. The...
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...Terms Comparison Paper Health Care Economics/HCS 552 November 18, 2013 Professor Alex Kadrie Terms Comparison Paper Economics is defined as a social science that examines how resources, particularly scarce resources are produced, distributed, and consumed. Health economics is a field of study that applies the principle of economics to the study of health care (Dewar, 2007). Economic understandings are essential to any discussion of health care policy or expenditure. Economics is divided into two categories macroeconomics and microeconomics. Macroeconomics focusses as the economy as a whole, where microeconomics focuses on exchanges, and decisions made between entities. Health care economics falls under microeconomics, focusing on exchanges between physicians, hospitals, insurance companies, and patients. Economics and health care economics use similar terminology, but with different meanings. Some of these terms include resources, opportunity costs, and technology. Resources A resource is a product needed to accomplish an activity, or a means to achieve a desired outcome (Business dictionary, 2013). Resources in health care include medical supplies, medical staff, and capital inputs. Medical supplies entail items like patient gowns, medications, syringes, and bandages. Medical staff consists of physicians, nurses, administrative staff, technicians, and support staff. Areas that fall under capital input include hospitals, other health...
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...the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Licensed to: CengageBrain User Economics for Today © 2012 Cengage Learning Australia Pty Limited 4th Edition Allan Layton Copyright Notice Tim Robinson This Work is copyright. No part of this Work may be reproduced, Irvin B. Tucker stored in a retrieval system, or transmitted in any form or by any means without prior written permission of the Publisher. Except as Publishing manager: Alison Green permitted under the Copyright Act 1968, for example any fair dealing Publishing editor: Michelle Aarons for the purposes of private study, research, criticism or review, subject Senior project editor: Nathan Katz to certain limitations. These limitations include: Restricting the copying...
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...Research Paper: Market Structure Professional Sports ABSTRACT Economic theory introduces us to four different types of markets: perfect competition, monopolistic competition, oligopoly, and monopoly. Professional sports teams operate in an environment that is different than the typical business structure. The goal of this paper is to look at this industry, in particular the NFL, in an economics context and gain an understanding of the market structure of this unique industry. To do this I will discuss a brief history of the National Football League in the U.S. and how this organization is structured. I will also discuss typical market structures and type of market structure that professional sports may fit into. Further I will briefly discuss the economic concept of a monopsony and how sports leagues such as the NFL exhibit those characteristics. Market Structure and Professional Sports Teams Introduction Teams like the Carolina Panthers, New York Yankees or the L.A. Lakers are part of national leagues of professional team sports such as the NFL, MLB, and NBA. These professional sports teams operate in an environment that is different than the typical business structure. The National Football League is an economic juggernaut. As of 2011, it reportedly makes an estimated $6 billion per year in ticket sales, merchandising and contracts with television networks...
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