Laws of Supply and Demand

Course Description Principles of Macroeconomics deals with consumers as a whole, producers as a whole, the effects of government spending and taxation policies, and the effects of the monetary policy carried out by the Federal Reserve Bank. Macroeconomics is concerned with unemployment, inflation, and the business cycle. Text Required: Macroeconomics, Roger A. Arnold, 7th Edition, 2005 Recommended: Macroeconomics Study Guide, Roger A. Arnold, 7th

Ten Principles of Economics Thinking Like an Economist Interdependence and the Gains from Trade The study of economics is guided by a few big ideas. Economists view the world as both scientists and policymakers. The theory of comparative advantage explains how people benefit from economic interdependence.

Chapter 3 introduces the law of demand, the law of supply, and the equilibrium markets for goods and services. We’ve also learned under what conditions the demand and supply curve will shift and the inverse relationship of price and quantity will cause movement along the demand curve. The chapter also included illustrations and impact of price ceilings and price floors. While Chapter 4 demonstrates the same principles - law of demand and law of supply also applies to the labour and financial markets.

The Supply and Demand simulation was reviewed on the student website demonstrated the concepts of the concepts of microeconomics and macroeconomics. The principles of microeconomics and macroeconomics were explained and applied throughout the simulation demonstrate the rationale for the shifts in the supply and demand curve. Each shift is analyzed showing the effects of the equilibrium price, quantity, and decision making process for the simulated company represented. The concepts encountered in the simulation provide an opportunity to better understand how each can be applied to my current workplace. The Scenario provides an

The Supply and Demand Simulation consist of microeconomics and macroeconomics concepts. The concepts are explained and how they apply to the principle of microeconomics and macroeconomics. The simulations presents shifts in the supply and demand curve, the rationale for the shift is given. Each shift is analyzed showing the effects of the equilibrium price, quantity, and decision making for the company presented. An explanation of the price elasticity affects the pricing strategy for consumers and company.

Goodlife Management experienced an increase in the demand curve of rental apartments due to the decrease in the rental rate. This shift in the demand curve would cause the equilibrium price to slightly increase because the demand curve would shift to the right and the supply curve would stay the same causing the price to fall higher upon that demand curve. The quantity of the apartments available would stay the same and ultimately would encourage the property manager to follow through with the decision to decrease the rental price. A great example of a shift in the supply curve occurred when the property manager was asked to rent all of the 2500 apartments available in order to obtain zero percent occupancy. With the increase of the monthly rental price, Goodlife Management shall have more incentive to lease more apartments to tenants. This shift in the supply curve would drive the equilibrium price in a more positive direction to further encourage the rental of more apartments. The quantity of apartments would obviously increase caused by the increase in the supply available for rent. Such a decision to rent additional apartments at a higher price would more than likely be a definite alternative as revenue shall increase as the vacancy rate gets closer to zero percent. Ebara Technologies, Inc. (ETI) is a nationwide corporation who manufactures vacuum pumps in which one of the corporate offices resides

Demand can either decrease or increase based on price of a product or service. Consumers have a tendency to buy products when there is a decrease in price. Companies have to kick off discounts to the consumers to increase demand. Pricing strategies for consumers are to buy when prices are low, although companies have to change prices to increase and decrease demand when needed. The simulation showed the same effect from the property management company. When supply was low of apartments the company had to increase price to decrease demand. When supply was too high the company had to decrease price to increase demand. The price elasticity of demand is flexible in which it can be changed and in return have an immediate effect. However, this can be harmful for

In year one GoodLife Management wanted to fill the apartments with a less than 15 percent vacancy rate while gaining the most possible revenue. They did this by lowering prices to $950

The change in expectations of management caused the supply of two-bedroom apartments to decrease. The expectation was that more individuals would prefer to live in a condo vice the two-bedroom apartment. It also eventually occurred and as a result, this factor caused the supply curve to shift to the

The market price of a good is determined by both the supply and demand for it. In the world today supply and demand is perhaps one of the most fundamental principles that exists for economics and the backbone of a market economy. Supply is represented by how much the market can offer. The quantity supplied refers to the amount of a certain good that producers are willing to supply for a certain demand price. What determines this interconnection is how much of a good or service is supplied to the market or otherwise known as the supply relationship or supply schedule which is graphically represented by the supply curve. In demand the schedule is depicted graphically as the demand curve which represents the

In the third scenario, the Atlantis Housing Survey provided statistics regarding the demand for two-bedroom rental apartments in Atlantis. The survey found an imbalance in the quantity demanded and quantity supplied at the current rental rate of $1,550. Lowering the rental rate to $1,050 removed the imbalance and created equilibrium in the market.

One of the central notions pertaining to economics is the conception of supply and demand. In a free market economy, or even in an economy in which there may be certain regulating agencies such as governmental forces, one expects for supply to meet demand at some point (Asif, 2012). These primary market equilibrating processes affect everyone involved in that particular economy, even me. By nature people are consumers, and they must learn to balance out their desires with what it is they can reasonably afford to consume, which relates to certain notions of scarcity and choice (McConnell, 2011, p. 4).

A smarty-pants old story says that if you want a "learned economist," all you have to do is get a parrot and train the bird to squawk "supply and demand" in response to every question.

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.

Broadly speaking, the modern economic science has two major components: microeconomics and macroeconomic. Compared to microeconomics, macroeconomics is a wider branch of economics. In 1936, macroeconomics emerged as a separate division of economics with the publication of John Maynard Keynes’ revolutionary book “The General Theory of Employment, Interest and Money”. In the study of microeconomics, it is examined how individual units, whether they be households or firms, come to a decision on how to allocate resources and whether those decisions are appropriate. On the other hand, in macroeconomics, the economy is studied as a whole. Macroeconomics studies the aggregate outcomes of all the decisions that households, firms, and the government make in an economy. Accordingly, the study of the behaviour of and structural changes in, aggregate or national production, aggregate consumption, aggregate savings, aggregate investment, general price level, total exports and imports and a country’s balance of payment position can be considered as the subject matters of macroeconomics. For the purpose of macroeconomic studies, all