Supply and Demand Simulation Paper

The Market Forces of Supply and Demand Elasticity and Its Application Supply, Demand, and Government Policies How does the economy coordinate interdependent economic actors? Through the market forces of supply and demand. The

Constructit is a company which does not presently have any employees with health insurance benefits. The company employs 1000 people and are willing to fund annual premiums as long as they can pay $4,000 per person. The employees comprise of 550 men and 450 women, ranging in ages 26 to 45. Furthermore, the workers 57% of the workers range from high activity to moderate activity while the 43% that remain are in predominantly sedentary positions. The employer must calculate what kind of risks the employee will face when considering what type of insurance to offer the employees. In this scenario, 38% of the employees are not at any major risk whatsoever.

4) For each article describe causes of changed price and the effects of the changed price.

a. This particular industry has a constantly increasing cost. There will be an increase in the demand for input factors for one key reason. Every day, new companies will be introduced into this market of remodeling, economic profits being the encouraging factor. Because of this, there will be a bid up on input prices for the companies in the industry of remodeling. “When a market is characterized by a large number of small producers, the demand curve facing the manager of each individual firm is horizontal at the price determined by the

This is a result of a demand shift to the left related to a lack of available tenants for the apartments. The property management company has to decrease rental rates allowing the quantity supplied to decrease as well (University of Phoenix, 2012), creating a downward swing in the supply curve. The price of rentals decreased to create less quantity that is available for rent creating equilibrium and a decrease in surplus. This is a difficult decision to lower price significantly but will continue to create revenue for the property management company while decreasing supply of vacancy.

Health care system has evolved tremendously in the last few years, with many changes with the health care laws including but not limited to Universal Health Care, many individuals have choices when it comes to their coverage. According to healthcare.gov, in January of 2015, an employer with 50 or more full time employees will have to make an Employer Shared Responsibility Payment if a full time employee gets a lower health coverage premium cost if insurance is purchase in a marketplace. However, employers are not subject to this law if the numbers of employees are lesser than 50 but are still

Castor Collins Health Plans, a regional health maintenance organization (HMO), in the state of Pantome provides HMO health insurance and health care services to enrollees through its statewide network of physicians and hospitals. E-Editors, a company with 1600 employees has asked Castor Collins to find an employee health insurance plan that accepts preexisting conditions at a maximum premium of $4,500 per person. Caster has two plans, which may fit the client’s demands. This paper converses the selection method including risk factors as compared to premiums that the company is willing to pay. In addition, the paper also considers the

The plan that fits Constructit is the Castor Enhanced Minor plan because the plan has lower risks by including fewer services. The premium being charged to constructit is

This causes the price and the quantity move in opposite directions in a supply curve shift. Also, if the quantity supplied decreases at any given price the opposite will happen.

Rheaco was experiencing major problems within their organization. The problems were leading to a loss in revenue and a loss in customers. Rheaco was behind on their deliveries and their product quality was declining. Rheaco was falling behind on 50% of their deliveries to their customers, which wasn’t creating a positive customer relationship. When the customers finally received their deliveries they filed complaints on the quality of the product. Another problem for Rheaco was that, their customer base was on the decline due to customers reducing their suppliers. The customers were cutting ties to their suppliers to help improve the quality of their company’s products. Their customer base was also on the decline due to defense spending cutbacks.

If the price set for rent control is set below the clearing market price causing a shortage to develop.Price ceiling are used to help halt rising real estate prices in certain areas with rapid growth. If the price is set too low there will be a market shortage because quantity demanded will be higher than quantity supplied. New York City uses rent control because real estate price in that area were higher than the government felt was just for the everyday man.

You are the manager of a firm selling product X in a competitive market. You consider writing a market report on X. Due to some economic changes, there is significant increase in the wages of workers. Please write a report about the expected effects on the market equilibrium price and equilibrium quantity of product X. the following points help you organize your report:

DigiVal & DigiVal Plus Manufacturing Company sells a range of computers, notebook computers, desktop computers, high-end servers and has a market share of 22 percent, along with another office in the U.K. with sales in Europe at 30 percent total sales. There are three team members who are qualified to get the companies market back on track. CEO, B.J. Downey, who targets the strategies, goals and revenue targets has steered DigiVal for the past 12 years. George Hernandez, Group Economist, who handles the analysis of economic trends in the market, Linda Jacobs, Product Manager, contributed vision and strategies within the company and Brent Richardson, Product Manager, that has a strong background

3) Describe how you would use Supply and Demand to determine the products/services your company would provide. Include how this affects the pricing of your company’s product/service.

II. ESSAY QUESTIONS. Answer any TWO questions. Answer all parts of each question that you choose.