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Effects of monetary and fiscal policy
Effects of monetary and fiscal policy
Effects of monetary and fiscal policy
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Supply and Demand, in economics is the relationship between the amounts of a Product that the producers are selling at a various prices and the amounts of the consumers desire to buy. There is a law in the Supply and Demand which explaining the interaction between the supply of the product or resources and the demand of it to the consumers. Both of it is connected to each other. The Law of Supply and Demand pull against each other that cause to it to increase or decrease in some various ways. There are so many factors that can affect both supply and demand.
Here are some factors that affect the supply of the product. One of the most common factors that affect the supply of the product is the Weather because some or many of the products
Let’s begin with the theory of Scarcity. The concept of demand is directly relatable to the scarcity of an item. Let’s look at Jackson Pollock’s work for example. If only 20 paintings were available created by Jackson Pollock, there would be a much greater demand than if you could purchase them easily at your local art gallery.
In economics, particularly microeconomics, demand and supply are defined as, “an economic model of price determination in a market” (Ronald 2010). The price of petrol in Australia is rising, but the demand remains the same, due to the fact that fuel is a necessity. As price rises to higher levels, demand would continue to increase, even if the supply may fall. Singapore is identified as a primary supplier ...
i. The economy is said to be ‘booming’ when demands for certain products and services rise. When demand rises, the prices will also increase. Increase in price can boost up the company’s profit. This enables companies to hire more workers thus increasing the numbers of employments. The increase in company’s profit also allows employers to raise the employees’ wages. When companies have more workers, they would be able to produce more products. Overtime, these outputs will then be sold to the people with jobs at a higher price because of the scarce amount of resources available.
Price gouging is increasing the price of a product during crisis or disaster. The price is increased due to temporal increase in demand while supply remains constrained. In many jurisdictions, price gauging is widely considered as immoral and is illegal. However, from a market point of view, price gouging is a correct outcome of an efficient market.
This essay will highlight some of the main characteristics used in distinguishing between llamas and alpacas, such as physical attributes, difference in temperament, and the common things they are cultivated for. A very significant telltale way of differentiating between llamas and alpacas is their conformation, or how they physically appear. There is a drastic and obvious difference in size between these species and it is often the easiest way to differentiate between the two. The articles states, “The llama is roughly twice the size of the alpaca. Most alpacas weigh between 100 and 175 lbs when fully grown. Llamas on the other hand weigh in the neighborhood of 200 to 350 lbs. with some as heavy as 400 lbs” (Openherd). Not only do llamas weigh much more than the standard alpaca but they also have a remarkable difference in height. The ears on these beloved pets and producers are another extremely easy way to see the
The American auto industry is in a crisis, their vehicles are not in demand and they need government bailouts to keep their businesses afloat. American vehicles are not on demand because people want fuel-efficient, the car companies that are not at the point of bankruptcy, longer lasting vehicles, and hybrid cars. The American car companies are at a point of bankruptcy and people don’t want to buy cars from a company that may not be there in a couple of months. The foreign car companies are doing well and they much more dependable now that we are in an economic crisis. American cars are not fuel-efficient, not as long lasting, and don’t make many hybrids, so this affects their business negatively. I got some ideas that will make American car companies be on top of the industry again.
In Book V of his Principles Alfred Marshall describes what he denominated “the state of arts” of the supply and demand theory, going back to Adam Smith. The assumptions then applied to the matter was that 1) demand comes first, 2) it is up to sellers to adjust supply to demand through production and marketing, a mix where the price is the most important variable, and 3) production takes time. Marshall summarized statement 2 later on into a single phrase: “Production and marketing are parts of the single process of adjustment of supply to demand” (MARSHALL, 1919, p. 181). This set of three assumptions suggests that the basic principles of the supply and demand theory collected by Marshall from the work by some scientists were then laid, requiring therefore only the right mathematical treatment.
The law of demand states that if everything remains constant (ceteris paribus) when the price is high the lower the quantity demanded. A demand curve displays quantity demanded as the independent variable (the x-axis) and the price as the dependent variable (the y-axis). http://www.netmba.com/econ/micro/demand/curve/
Subjective value arises from individuals' preferences, and so influences economic agents' behaviors. In microeconomic theory, supply and demand attempts to describe, explain, and predict the price and quantity of goods sold in perfectly competitive markets. It is one of the most fundamental economic models and it is used as a basic building block in a wide range of more detailed economic models and theories. Price is the going rate of exchange between buyers and sellers in a market. Price theory charts the movement of measurable quantities over time, and the relationship between price and other measurable variables.
When a suppliers' costs changes for a given output, the supply curve shifts in the same direction. For example, assume that someone invents a better way of growing corn so that the cost of corn that can be grown for a given quantity will decrease. Basically producers will be willing to supply more corn at every price and this shifts the supply curve outward, an increase in supply. This increase in supply...
... quantity of helium supplied has also decreased due to refinery closures and privatization which this is a determinant of supply known as “decreasing number of sellers”, which will cause a rise in the prices of helium. As the number of sellers in this particular market decreases, our supply of helium decreases as well shifting the supply curve. Also, we have a change in a non-price determinant of supply such as the cost of factor production, which equals to a change in supply. This change in supply shifts the supply curve to the left because helium is becoming more difficult to find and the cost of natural resources has increased causing a decrease in the helium supply.
The business needs to identify demand, supply and product related phenomena that influence the demand forecast.
With supply solely, factors involved with regulation of the supply also control some aspects of demand. Things such as production costs and desired net profit can determine whether a business succeeds or not. Having a balance between quantity and price is the greatest control any business can have. Pricing is obviously one of the most beneficial, or destructive, parts of a business. Pricing is the first and most valuable thing an individual will look at, which will overrule most other judgments based off of quality and detail. Balancing the price, however, helps to create a pristine product, with just the right amount of detail that will fuel the market, while still generating a steady net income.
When the price of raw material will go up or down, the production coats will rise or fall. Secondly, the price of substitute products also affect the supply curve. Because the relatived products are competitive relationship, when the price of one product goes up, another will goes down. It will affect suppy. Thirdly, production technology will affect the supply curve. When the level of technology is rising or falling , the production costs will go down or up. finally, the government policies will affect the supply curve. Positive policies will make the supply go up, conversely, it will go down. For example, the govenrment limit the amount of cars which people can buy, it will caused the supply curve down. In addition, the price of product in the future and the development of product company will also affect the supply
When it comes to the supply, demand and price of coffee there are certain factors that can fluctuate these characters to rise or fall. Weather is one example that affects the consumption of coffee.