...Running Head: Assignment: Supply and Demand Paper Assignment: Supply and Demand Paper XECO/212 University of Phoenix Appendix C Differentiating Between Market Structures Table and Questions Fill in the matrix and describe differences in public and private goods, common resources, and natural monopolies. Use your book and the Tomlinson video tutorials as a tool to help you answer questions about market structures. | |Example |Is there a rival in consumption? |Is it excludable? | | | | | | |Private Good |Ice-Cream Cones |Yes |Yes | | | | | | |Public Good |National defense |No |No, this is a non excludable item. | | | | | | |Common Resource |Fish ...
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...The good I have chosen for this supply and demand paper is buying a new car. I just bought a brand new 2012 Honda Accord LX from the Crystal lake, Illinois Honda dealer. I traded in my old 1999 Honda Accord EX which had 195000 miles on it. I had bought that car new as well from the Honda dealer. I was going to get my old car fixed but it would have cost me 2000.00 the Honda dealer said. They suggested I buy a new one and I was promised a good deal because sales were low for them. I made the decision to trade my old Honda Accord for 4000.00 and get the new one. I am so happy I made the right choice of buying a new car instead of throwing money away in the old one. In this paper I would like to talk about factors that could cause possible changes in the supply and demand when buying a new car. Determine at least two substitutes there may be for new cars. Also, check at least two complements there may be for new cars. Lastly, determine the key determinants of the price elasticity of demand. Some of the factors that could cause possible changes in supply and demand when buying a new car are when there are high unemployment rates and lower wages, the demand for new cars will be less. When people have a good job and make more than minimum wage they may buy a car for every driver in the house and then the demand for new cars will automatically increase. Also, when gas prices are really high people may avoid buying new cars especially since a lot of newer models have really...
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...Supply and Demand Paper A good that I have experienced purchasing, which has factors of supply and demand is a new house. One factor that can determine the supply and demand ratio, which can lead to an increase or decrease of price is the area that the house is purchased in. I live near a large college, Virginia Tech, which employs and educates thousands of individuals. The factor of this situation is the closer to the college an individual chooses to live, the more expensive products will cost to live there. If Virginia Tech's athletic program made a turn for the worse, then that could downsize the amount of people in this area, which would decrease the need of housing in the area. Second is the economy, with the ups and downs of the economy, individuals are afraid of making drastic change involving money because of the scare of losing his or her job. Basically with this situation, someone that has a good job and good credit can determine certain outcomes by buying a house at a better price because others are scared to. A motivated seller will not hesitate to sale a house to an individual that offers a fair price for a house that has set on the market for a time period. This type of situation generally drops the demand factor, which decreases the value of the product. There are a couple substitutes that can establish a comfortable market value for a house around the area I live. If an individual wants to live in this area but cannot afford the housing...
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...Eric Cundiff Supply and Demand Paper 08/25/2013 The one good that I purchased and have experience with is buying a new car. Buying a new car was very beneficial for me, but I had to shop around at many car lots before I chose the car that I bought. The reason I had to shop around is because the type of car that I wanted was not available at a few of the places I went due to the economy. That is one of a few reasons why a certain car may not be available in a certain area. The supply and demand for cars can change in a matter of hours, because of the economy. It takes money to pay workers to make cars and it takes money for potential customers to shop around for those cars. If the economy is not doing so well, then that means that jobs will be hard to find and the demand for cars will start to decrease. The price of gas may fluctuate and that changes the demand for cars, because people choose to use public transportation instead. When the demand for cars starts to decrease then the supply of the cars will start to decrease, because they are not selling enough to make room for the others. Another factor that could change the supply and demand of cars is the weather. That sounds crazy, but it’s true. A lot of our cars in the U.S. comes from overseas. Japan is well-known for their import cars and many people in this country buy those types of cars. If there are a lot of hurricanes during hurricane season then the supply could start to decrease...
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...SUPPLY AND DEMAND Monica Minj SUID: 1834386 Seattle University Supply and Demand Supply and Demand is the most fundamental concept in economics and it plays a vital role in determination of price of goods in the market. Supply is the ability of a market to offer a product at a particular price and demand is the quantity of a product or service demanded by the people at a given price. The correlation between the price and quantity supplied is known as the supply relationship whereas the relationship between the price and quantity demanded is known as the demand relationship. To analyze the concept of Supply & Demand, we assume that we have a perfectly competitive market, which is a market where we have so many buyers and sellers for a product that no single buyer or seller can affect the price in the market. From economics point of view, the businesses have to see the demand and supply as two forces that act together to determine the price for various goods. Law of Demand Law of demand states that, higher the price of goods, lower the demand for that good will be. When the price of a good goes up the quantity of that good purchased by the buyers goes down as it prevents them from buying other goods that they could have bought. The demand curve is a negative slope as shown in the diagram below. D1, D2 and D3 are three points on the demand curve. From this curve we can clearly see that if the price of the good is increased, the quantity demanded will go down(D1),...
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...1 Supply and Demand Jesse Cisco XECO/212 8/13/2012 Jaime Medina Supply and Demand 2 I have chosen to write about purchasing a computer. There is such a variety of computers and with technology improving every day, many factors are encouraging or discouraging people to buy them. For example, when I bought my new computer I was very specific on what I was looking for in a new computer. I wanted a lot of memory, a very large monitor, and it had to have windows 7, and of course the price had to be reasonable. As a consumer, once I found a computer that had all these aspects, I purchased it without a second thought. There are factors that change the supply and demand curve for any good or service offered to consumers, this is what makes the manufacture know how much to sale and at what price. There are many aspects that could affect the demand of computers, for instance there would be a greater demand for computers when college started up. Consumers would be more willing to buy because they need to have computers to complete their school work. You might see a negative change in demand when college is on summer break and students are not worried about purchasing a computer. The holidays would show an upward change in the demand curve, because of the purchasing of computers as gifts. The sales during the holidays would have consumers willing to buy computers. Factors could also positively and negatively affect the supply curve as well. Price of manufacturing...
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...Supply and Demand Simulation Sandra Torrey ECO/365 February 24, 2014 Bert Wheeler Supply and Demand Simulation Supply and demand can happen in either real life situations or at the work place or both. When certain things happen with supply and demand there can be a shift in the supply and demand curve, which will be explained. Another item that can be impacted is the equilibrium price on decision making and on quantity. These will be analyzed as well. Supply and demand can be influenced by the movements that are associated with both macroeconomics and microeconomics and also influenced by the equilibrium price and quantity. Price electricity of demand also has an impact on the consumer’s purchasing and on the pricing strategy of the company. All these items were either shown or demonstrated in the simulation online in a city called Atlantics and this is how I see them. Macroeconomics and Microeconomic Principles Supply and demand of apartments being rented in Atlantics are the two microeconomic concepts that are present in the simulation. On the other hand, at macroeconomic level, there were changes in population trends when it came to choosing to rent or not to rent apartments as well as factors that influenced these changes. According to Colander (2010), the law of the demand says that quantity demanded increases as price falls, other things constant. The law of supply asserts that the quantity supplied decreases as price falls, other things constant. The supply...
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...Demand Verses Supply Paper HCS/552 – Health Care Economics March 4, 2013 James Brown Demand Verses Supply Paper Demand of health care services within the health care industry will inherently continue to rise as American society ages. Technological advances in diagnostics and treatment provide individuals the opportunity to seek quality care that can prolong health and wellness for those seeking treatments. The key for the health care industry is to attempt to meet the demand with an adequate supply of quality services that enhance the health and well-being of those seeking care. The value of a new medical technology is determined by supply and demand (Getzen, 2007). Diagnostic radiology is a prime example of the value being determined by both supply and demand. As radiologic imaging advanced from two dimensional x-ray images to three dimensional ultrasound images, magnetic resonance imaging (MRI), and Computed tomography (CT) providing better image quality and increased accuracy of diagnoses, the demand for these services rose. Statistics show that from 1996 to 2006 the frequency of radiology imaging increased nearly 60%, from 61 million studies to 99 million (Klein, 2008). This significant increase in use is directly related to enhance image quality used for diagnosis. This figure will continue to rise as more baby-boomers use these services to diagnose potential health issues that can be determined through radiologic imaging. This paper will discuss the demand...
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...365 Wednesday, March 13, 2013 William Mason Supply and Demand Simulation Paper In the simulation, Goodlife Management is a company who rents and leases two-bedroom apartments in the city called Atlantis. The simulation helped students understand shifts in demand and supply, the effect of a price ceiling on the quantity demanded and quantity of supplied two-bedroom apartments, and the equilibrium point as well. “Microeconomics is the study of how individual choice is influenced by economic forces” (Colander, 2010). Individuals in this case refer to both people and businesses. Two microeconomic principles that are apparent in the simulation are the supply of two-bedroom apartments for rent, and the demand for renting them. In all the scenarios, students were challenged to either increase or decrease rental rates on behalf of Goodlife Management, depending on how high or low the demand of two-bedroom apartments were. On the other hand, macroeconomics is the study of the economy as a whole and considers problems of inflation, unemployment, business cycles, and growth (Colander, 2010). The increase in population, or growth, had an impact on the apartments because there was a parallel increase in demand for rented apartments. The reason for an increase in population was the fact that a new business was opening up in Atlantis, thus creating job opportunities in the city. Because the employment rate in Atlantis was rising, the demand for renting apartments increased as well and falls...
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...Supply and Demand Simulation Paper Roberta Barker ECO/365 August 25, 2014 Dennis Mc Guckian Supply and Demand Simulation Paper The simulation presents real-world scenario of how shifts of the supply and demand curve affect the equilibrium price and how understanding these concepts aids in the decision-making process. At each stage, new variables are introduced causing the shifts of the supply and demand curves the challenge is to determine the new equilibrium price correctly. This paper will explain what parts of the simulation are categorized as microeconomics and which are macroeconomics and why. In addition, identify a shift of the supply curve, a shift of the demand curve, and what caused the shift. I will also discuss what I have learned about supply, demand, and equilibrium price, and how microeconomics and macroeconomics principles or concepts affect it all. Microeconomic Principles or Concepts The first scenario I categorized as a microeconomic concept is the first challenge to reduce the number of vacancies in GoodLife’s two bedroom, temporary month-to-month lease apartments from 40 percent to less than 15 percent, finding a rental rate that will net maximum revenue. The second scenario I also put in this category involves an increase in in the number of rental units the company handles (from 2,000 to 2,500 units) and the rent increase to cover the additional maintenance required to rent all 2,500 units. My reasoning is microeconomics is the study of individuals’...
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...Demand Versus Supply Paper Robin Wanamaker HCS/552 March 26, 2012 Jim Brown Demand Versus Supply Paper “Demand refers to one of the fundamental concepts in economics. Demand refers to how much (quantity) of a product or service is desired by buyers. The quantity demanded is the amount of a product people are willing to buy at a certain price; the relationship between price and quantity demanded is known as the demand relationship” (Hekla, 2012). Supply represents the amount the market can offer. Quantity supply is the amount of a certain product that can be produced for certain prices. Price is the relationship between supply and demand. “The law of demand is if factors remain equal, the higher the price of the supply the less demand there will be. The law of supply is the quantities that will be sold at a certain price, and the higher the price the higher the quantity supplied” (Hekla, 2012). This in turn increases revenue because with high demand, comes high supply due to wanting or needing the product. With high supply and low price, than comes high demand due to the lower price. Demands and supply for health care products and medications continues to be in high demand as products are developed. The newer the product, the higher the demand, and the higher the price. Product Lovenox is a product used to treat and prevent deep vein thrombosis or pulmonary embolisms. This medication is given subcutaneously by a care giver or the patient may be trained to give...
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...Supply and Demand and Price Elasticity Paper Betty Hargrove ECO/212 January 30, 2013 Vivek Singhal Introduction After careful evaluation of our daily commodities we have chosen, soap, oil, sugar, salt, tissue, flour, toothpaste, deodorant, electricity, and wheat. These lists of commodities are necessary in a basic style of life. Our chosen product to focus on throughout our paper is sugar. We will address the supply and demand shift of sugar in a market economy. Furthermore, we will address supply and demand and price elasticity as well as whether our chosen commodity is a necessity or a luxury. Supply and Demand Shift There are limited explanations of why the demand and shifts in sugar vary. One of these reasons is because of the federal tariffs that are put on sugar. A tariff or tax on the import or even export increases the price and make it less in demand. No one wants to pay more for anything that we were paying less for a week ago. Also now there are a few different substitutes of sugar then using the real things. There are brands such as Equal, Splenda, and Sweet and Low. These are known as artificial sugar substitutes. These artificial sugar substitutes are sometimes found in food that we consume daily depending on our likes. Items that are, labeled as “diet” or “sugar free” use artificial sweeteners. There is “sugar free gum” and “diet soda”. These products typically have artificial sweeteners. The demand for the sugar is how much the consumers are willing...
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...The Supply and Demand Simulation that was taken through the University of Phoenix utilizes the principles of microeconomics and macroeconomics concepts and theories. These concepts and theories are explained and relate to the principle of microeconomics and macroeconomics. The simulation actually presents relative reasons in the supply and demand curve, as well as an explanation for the shift. Each shift in the supply and demand curve is analyzed, which forecasts the effects of equilibrium price, decision making for the company presented and the quantity. The obtained concepts in the simulation will enable me to utilize and apply them to my current workplace. With the explanation of price elasticity, one can understand the effects that demand has on the pricing strategy for consumers and companies and how important a strong strategy is relevant to success. Atlantis is a nice neighborhood within the simulation that has many amenities that consumers look for (University of Phoenix, 2012). The simulation neighborhood of Atlantis utilizes two bedroom apartment rentals to present the effects of supply and demand for potential customers. The simulation also presented many other scenarios that the management company encountered with the two bedroom apartment rentals, such as how the apartment rental price can affect supply and demand while trying to stay competitive in the market of real estate. The simulation utilizes microeconomics concepts to illustrate the reasons for change in...
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...ECO 372 Principles of Macroeconomics Week Three Team Assignment Aggregate Demand and Supply Models Linette Pugh, Jyenna Baeza University of Phoenix Online Professor: Leo Stevens Unemployment The United States is recovering from a recession and high unemployment numbers. As of December 2013 the Bureau of Labor statistics reported that unemployment is down 6.7% from 7%. The number of unemployed persons declined by 490,000 to 10.4 million in December, and the unemployment rate declined by 0.3 percentage point to 6.7 percent. 2013 reported 11 million Americans out of work and 4.4 million people who have been unemployed for six months or longer. Over the year, the number of unemployed persons and the unemployment rate were down by 1.9 million and 1.2 percentage points, respectively ("The Employment Situation 2013", n.a). Michigan and Indiana are the two states that are reporting the highest unemployment which are 8.5% and 8.7% ("Important Unemployment Figures", 2013). While the numbers are starting to decline, unemployment is on the minds of many Americans. Since the future is so unsecure people are saving instead of spending, they are preparing for that day in case it comes. Demand starts to go down and the aggregate demand curve shifts to the left. President Obama realizes that incentives need to be made to help our economy prosper. On April 5, 2012, the president signed a bill called the (JOBS) Act. This bill allows starters to raise capital more quickly from...
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...Supply and Demand University of Phoenix XECO/212 When prospective homebuyers are looking to buy a new home in their area, they should consider the health their local real estate market is in. A prospective homebuyer needs to have an understanding of the many different economic trends a real estate market can have, There are many different business cycles and real estate trends that will have an affect on why a homebuyer would purchase a home and there are different monetary advantages depending on what kind of business cycle going on at the time. The major factor that has an influence on the price of housing is supply and demand of your local real estate. The most basic economic principal on a products price is supply and demand, Supply and demand determines the price of products based on the availability products. If a products demand is high and the supply is low then the price will increase, because people are buying large quantites of the product and if supply is high and the demand is low, It’s probable that people are not buying the product at that time so the price will generally be lower than it would if people were buying a large amount of the product. There will always be a need for homes because there will always be people that need them which makes homes inelastic. The terrorist attacks in September of 2001 created a substantial amount of uncertainty within our economy and spawned a consumer confidence crisis...
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