Demand And Supply College Essays Samples For Students

Changes in Market Equilibrium

The interaction of the forces of demand and supply determines the equilibrium price and quantity in a perfectly competitive market. A market is in equilibrium when no buyer or seller has any incentive to the change in the commodity that he or she buys or sells at the given price.
The equilibrium price of a commodity is the price at which the quantity demand of a commodity equals the quantity supply and the market clears. The process by which the equilibrium is reached is shown by the intersection of the demand and supply curve of the commodity.

Summary of the Video

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Assignment 1: Demand Estimation

Demand and Supply Estimation
Based on the given information, we will calculate the elasticities of different variables.
For the first demand function, QD = - 5200 - 42P + 20PX + 5.2I + 0.20A + 0.25M
Price of the microwave oven, P = 500,
Price of leading competitor’s product, PX = 600
Per capita income, I = 5,500
Monthly advertising expenditure, A = 10,000
Substituting the values of P, M, PX, I and A in the above equation, we will get the value of quantity demanded as,
QD= - 5200 – 42(500) + 20(600) + 5.2(5500) + 0.20(10000) + 0.25(5000) = 17,650 units
Price Elasticity ( ...

Abstract

Using the regression equation and given values of independent variables, we estimated the elasticity of each of them and ascertained that the product is highly elastic to price levels and therefore, the firm can consider to decrease the price levels in order to increase their market share. At the same time, cross elasticity and income elasticity were also significant in relation to the demand of the product, although advertisement expenditure has negligible impact on the product’s demand. Hence, own price, price of related goods and income of consumer are three major factors which the firm should incorporate while ...

1) The supply is the amount of goods and services offered for sale on the market at a certain price. It depends on prices: the higher they are, the higher is the offer from the seller, since the latter is interested to get as much money from the sale of goods (services) that makes his economic interest. This is called the law of supply. Quantitative dependence suggestions from a change in the price of goods called "supply elasticity". It is measured as the ratio (in percent) growth of volume of supply to higher prices.
2) The term "demand" in ...

Executive summary

Demand and supply is the basic concept of economics and hence it is the backbone of market economies around the world. Demand implies the willingness and potential on the part of a consumer to purchase a product at a specified price while supply indicates the quantity of the same product available in the market for sale. The price is a major factor determining the demand for a product in the market even though the consumer’s income and preference along with the price of certain other complementary products tend to influence the price. Supply of a product in the ...

The Canadian healthcare and social assistance sector falls under the NAICS classification. The sector entails a publicly funded healthcare system. The sector is guided by the provisions of the Canada Health Act of 1984 (Belchetz). The sector, relative to its peers in most other countries including the U.S and Mexico, is unique. Its uniqueness arises from the fact that despite being predominantly publicly funded, most of the healthcare services at the point of sale are provided for by private practitioners.
The Canadian healthcare and social assistance sector has been billed in many quarters as a model to be followed ...

Demand function (QD) = -5200 - 42P + 20PX + 5.2I + 0.2A + 0.25M
Where; P= 500, PX=600, I=$5,500, A=$10,000 and M=5,000

Replace values in the equation;

QD = -5200 - 42(500) + 20(600) + 5.2(5,500) + 0.2(10,000) + 0.25(5,000)
= -5200 – 21,000 + 12,000 + 28,600 + 2,000 + 1,250
= 17,650
Price elasticity of demand = ∂QD∂P×PQD
∂QD = change in quantity demanded, ∂P = change in price; P= price, QD = quantity demanded
∂QD∂P = -42 QD= 17,650 P= 500
Price elasticity of demand = -42 ×50017,650
= -1.1898
The above elasticity indicates that the product’s quantity demanded ...

Cash is the main means of settlement in pricing gold and silver in the future markets. It is however not consistent with the demand and supply situations observed in the actual market. Trade in the current market is done using bullion. Increase in bullion supply in future markets results from the printing of uncovered contracts which represent gold claims. This is temporary and false. The rise in paper bullion supply contracts results in a decrease in the price in future markets regardless of the high bullion demand in the physical market and its reduced supply. Using empirical evidence and ...

Introduction

In economics, a market is an institution or a mechanism that brings together buyers (bearers of demand) and sellers (suppliers) of certain goods and services. At the same time, markets may take various forms, including the form of the labor market. The labor market not only covers employees in all sectors of the economy of various skilled workers, but also working-age people who are not involved in the social production at the moment (for example, temporarily unemployed people).
In the most general form, the labor market is the economic relationship between the demand and the supply of labor. The ...

Introduction

There exist multiple factors that influence the level of reward paid to different workers. The wage rates, just like prices of other commodities are greatly determined by the forces of demand and supply. The kind of economic significance attached to wage differentials cannot be overlooked since they have a direct influence on the distribution and allocation of economic resources. Workers with equal abilities in a competitive market receive rewards that are meant to cancel out the non-wage differences between their jobs. These differentials represent the variability and diversity of abilities of different workers both physically and mentally to contribute ...

The Economic system is a way in which a country allocates the production, distribution, and consumption of goods. Several economic systems are in existence; these are; traditional, command, market and missed economies. The traditional economic system relies on traditions to determine what is done for a living. Industries, shelter, and clothing are similar to those in previous generations. It is therefore not used as there are developments taking place in the world of production and distribution, and the needs and demands are changing in the command system, the government controls all economic activities. In this system, the market plays ...

Volatile Prices of Primary Goods Preventing Economic Development in LDCs

Background
The primary goods refer to the products that are obtained directly from agricultural activities and are not subjected to the process of manufacturing. The most important primary products in an economy include those that are obtained from the sector, such as the fishing, agricultural, forestry, and mining industries. In terms of the least developed nations, which are mainly located in Africa, Asia, and the Latin America, the trade characteristics of their economies include the dependence on the developed, industrialized nations, and, significantly, the reliance on primary products. Accordingly, in international trade, the least developed nations’ exports are primary ...

Determination and interpretation of elasticities

Demand function, QD = -3,500 – 150P + 30A + 75PX + 10 Y
P = 300 cents, A = $750, PX = 200 cents and Y = $10,000
QD = -3,500 – (150 × 300) + (30 × 750) + (75 × 200) + (10 × 10,000)
= -3,500 – 45,000 + 22,500 + 15,000 + 100,000
= 89,000 units

Price elasticity of demand

Price elasticity of demand = ∂QD∂P × PQD

Change in quantity demanded/change in price, ∂QD∂P is the coefficient of price, P in the demand equation.

∂QD∂P = -150
QD = 89,000
P = 300 cents
PED = -150 × 30089,000
= -0.5056
The above price elasticity of demand indicates that the quantity demanded of the low-calorie, microwavable food decreases by 0.5056% for every increase in price by one cent. The elasticity is less ...

What are the determinants of the Deadweight Loss?

Introduction
The deadweight problem happens when the government through an attempt to increase their earnings from the goods in a country increases the taxation on them. It happens when they impose a certain amount of tax on certain commodities in the market and the end consumer as well as the producer in charge of the production process forced to lose the whole or part of their surplus. The loss they both suffer is the deadweight loss. The government has the right to earn some form of income from the trade activities within their borders. However, they also need to ...

Oil Prices Fluctuating In the Middle East

Introduction
Oil being a commodity is subject to high levels of fluctuations as opposed to the stable investments like bonds and stocks. In particular, Organization of Petroleum Exporting Countries (OPEC) plays a significant role in influencing the prices of oil across the globe. As a result, OPEC controls around 40 percent of the global supply of oil by setting the production levels that caters for the world demand and it can determine the prices of gas and oil by reducing or raising the levels of production.
At a particular point in time, OPEC vowed to maintain the prices above $ ...

Introduction

There is no state decided minimum wage in the state of Tennessee; therefore, they follow the federal minimum wage. Therefore, there is no promised wage law in the state that requires states to pay their wages promptly. Like many other states throughout the United States of America, FLSA (Fair Labor Standards Act) applies to Tennessee workers set according to the Federal Minimum Wage and Labor Law. According to federal minimum wage in 2015, businesses throughout the state of Tennessee need to pay $7.25 per hour. The majority of workers in Tennessee gets $7.25 per hour for their daily labor ...

Introduction

Modern global economic system is a considerably distinct from the dogmatic frameworks of political economy (Mankiw, 2014). Professor Blanchard contests that extreme increase in production and substantial automation of the business processes have seriously changed the global economic landscape (2011). In order to stay competitive the companies have to develop and implement new business solutions, as well as they have to stay socially and environmentally responsible (Goldin, 2014). In addition, Gartner wrote that there is an increasingly important need to stay in line with the perpetually evolving customers’ preferences (2006), and the smallest disharmony with their predilections may result ...

The Qatar Stock Market

Before discussing Qatar’s stock market, let us gain some relevant information about the country itself. Qatar is located in the continent of Asia and covers over 11,000 square kilometers of land which makes the country the 168th largest nation when looking at land area. Qatar became an independent state in 1971 gaining its independence from the United Kingdom with a population of 1,951,591 people in 2012. The currency is the Qatari Rial (World Atlas, 2015).
When viewing the stock market, there is information that every investor should know about Qatar before investing in the market ...

Introduction

The US and global consumers shows different consumer behavior for products. The economy possesses the largest technology companies such as Google Inc. and Apple Inc. in the world.

High consumption of technology products in the US and all over the world.

The mobile phone industry is very innovative and important to the society. Product that I will be looking at is the iPhone and its rising demand in the US market despite the increased competition from Samsung Inc.
iPhone has acquired the largest market share in the United States in spite of its price.

The paper discusses about the key players in the industry and their impact on product pricing, demand and supply.

iPhone’s influence in the industry and the forces that drive the demand and supply of the product.

Analysis

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Reasons for the severe decline in Chinese Stock market in 2015

Between June 2014 and June 2015, the CSI 300 Index rose by 150%, reaching the peak at 5,166.3 on 12th June 2015. What follows was a severe decline in the stock index. Within just one month, the CSI 300 index had lost 30% to 3,507 on July 8. Several factors caused the fall.

Short selling

In the run-up to the stock market decline, investors were aggressively involved in short selling and margin trading. Short-selling and margin trading allowed investors to purchase shares using borrowed money thereby increasing the demand for stocks. Investors engaged in short-selling sell stocks borrowed from ...

The question of minimum wage introduction for low-skilled workers offers conflicting research findings. Some theorists suggest that the introduction of minimum pay for low-skilled labor may affect the whole employment. However, the general model of competitive market for labor assumes that the introduction of minimum wage will cause job loss among the low-skilled employees. This report is dedicated to the economic analysis of this model.

What Economic Theory Predicts Will Happen

The simplest approach includes the analysis of one separate labor type. In such market, the minimum wage that overshoots the competitive equilibrium in the market causes harm to employment from two standpoints. First of ...

(A)Principles of increasing/diminishing marginal returns.
Principles of economics include returns to scale. Most firms experience increasing returns to scale when at the beginning of the business the costs in the long-run are decreasing this is so because a unit of the available resources produces more returns. On the other hand decreasing returns to scale in most cases occurs when the unit resources produce fewer returns. Organic products on the article exhibit increasing returns to scale, (Arthur, 2003). From the article companies such as wall-mart improved and became big firms this helped them to scale up, and make high ...

Introduction

While at my early level of education I had a compelling drive within that one day I be one of the accommodation service providers in the country. Hospitality entails a lot of dealing with people which even made it more interesting and appealing to me. On completing my university education I was immediately absorbed in one of the leading hotel service providers in the country, Hilton Hotel. I encountered and dealt with several people of different walks. This gave me experience enough, and after working with Hilton Hotel for five years, I decided to quit my job and start my own ...