Micro Economic Analysis Paper

-The role and significance of prices in the market economy has to do with supply and demand. If there are the same amount of buyers as products, the price will settle. If there are more buyers than products, the price of the product will rise. And, if there are more products than buyers, the price of the product will decrease. This occurs until the supply of the product matches the demand of the product.

55). Products priced below equilibrium price cause a shortage of supply because of an increase in demand for lower priced assets (McConnell, Brue, & Flynn, 2009, p. 55).

It is basic economic principle that states that when there is an oversupply of a good or service, prices fall. When there is a high demand, prices tend to rise.

Red line goes up. Not enough supply. New equilibrium point (higher on the price axis) *shift to the right. * price increase and quantity increase.

If a good in itself is available and on the pricey side the consumer in today’s society will look for a substitute that complements the budget, therefore creating a competitive market. A competitive market begins when the substitute for the good is marketed at a lower price and the sale of this product begins to increase. When the supply and demand for the substitutions become larger the manufacturer will adjust the costs of the original good to increase sales of the product. If the consumer notices that there was a particular reduction of the good or it can be purchased in a larger quantity of a more reasonable price, then the consumer will change back to the original product at hand. Therefore lending a hand in creating today’s society of price elasticity.

Although the market is softening, Sheraton Hotel should continue to realize that now is not the time to ignore facility and room maintenance. The guests expect clean surroundings and rooms with everything in working order. Sheraton Hotel should not sacrificed maintenance standards in order to save on operating costs that could result sacrificing the satisfaction of guests. The technology amenities also need to be in top working order to avoid disappointing guests. In addition, while guests who visit luxury hotels tend to be somewhat more immune to price pressures, parking fees are becoming more commonplace and an increasing source of dissatisfaction among these guests, recommend complimentary and free valet parking for the customers. Sheraton Hotel should also continue to look for other resources or partner with other company that in order to continue to meet the supply and demand of Sheraton Hotel’s services.

Microeconomics is the economic influences that impact at the micro, or firm, rather than macro level. The study of this subject is one that is highly valuable for any studying business with the provision of knowledge that will increase understanding of different influences and support the decision making processes. With the knowledge gained, along with the skills in applying that knowledge developed through class work and exercises for the different modules, there has also been the development of increased confidence, both personal and in the theories, in using the relevant concepts and tools in a practical setting.

As the cost of product increases, the buyer is unable to come up with the money to buy the product, so the buyer will buy the product in lesser quantity and ultimately affecting the demand of that product. If prices increase, user will try to find the substitute for that product at lower prices and switch to alternative of that product. So, a person can affect the demand factors. For managerial decision making, prime focus is on market demand. Market demand is the aggregate of the quantities of the product demanded by all individual over a specified given time period. Market demand may be influenced by distribution of wealth and income in the community, general standard of living, and growth of the population, age structure/ratio of the population, future expectations, and level of taxation. On the other hand, there is also individual demand which is a single consuming entity’s demand. There are several factors that determine market demand i.e. income in the community, standard of living, price of goods and price of commentary of substitute of a good. Samsung’s phones and TVs are considered as consumer goods. Therefore in electronic industry, the main purpose for purchasing electronic devices is to satisfy some sort of a need. Samsung products are used by the business people in firms as well as by individuals for individual purposes. People often use the TV for

Apple Incorporated, formerly known as Apple Computers Incorporated, and more commonly known just as Apple, has lead the way in technology and innovation for consumer electronics with their slender storage capacities, vibrant displays, and incredible touch screen products. When they first started, their focus was more on personal computers for customers, but as the company has aged, so has their focus expanded towards this idea of consumer electronics as a whole. Seeing as they now offer popular devices including, but not limited to, computers (Mac Book), home theater (Apple TV), phones (iPhone), tablets (iPad), and media (iPod), it can clearly be

The price mechanism allows the price to change following a change in demand and/or supply. The price will rise or fall until supply equals demand. Therefore, the price mechanism allows the market to clear up shortages or surpluses.

• There are several factors that need to be taken under consideration before deciding your product pricing strategy.

Another threat that is very apparent to Apple is the very high level of competition.   The major competitors with Apple are Dell, Microsoft, and Hewlett Packard.

Economic factors the main impact every product and service is inflation. When there is inflation it has a ripple effect on all products and services. As a result companies incur an increase in their cost of production, and that leads to an increase in retail and wholesale prices. This can decrease the consumer buying

In a perfectly competitive market or what is sometimes referred to as a free market economy, prices are determined by the interaction of the forces of demand and supply. The determination of prices by the interaction of the invisible forces of demand and supply is known as the ‘price mechanism’ or ‘price system’.

The collective way of all the decisions on demand and supply, use of resources and opportunity costs made by millions of people or firms sets the price for goods, services, assets and labour demand and supply therefore form the main principle that underlines all microeconomics (ESRC).