Discussion Question 2 Week 1 Supply and Demand - Assignment Example

Supply and Demand: Discussion 2 Week al Affiliation Supply and Demand: Discussion 2 Week E-Activity - Select a good or service in which you are interested. Use the Internet to locate information regarding the supply and demand of this good or service. Be prepared to discuss. The recent launching of iPhone 6 revealed that the demand for the product far exceeded the supply (Etherington, 2014). The supply was reportedly established using historical figures of previous iPhone sales and using information of pre-demand orders (Etherington, 2014).

The figures on the number of iPhone 6 units sold during the first weekend confirmed that a total of 10 million units were sold and still, more people are waiting to be served.1. From the e-Activity, examine the key factors that influence the supply and demand of the selected good in general. Discuss two ways or reasons in which business organizations may utilize the information on determinants of demand and supply in their economic decision making.The factor that influenced supply and demand for iPhone 6 included the determinants of demand: price of substitute goods, the price of complementary goods, income, preferences or tastes, and the number of buyers (ECO550 Week 1 Scenario Script: Models of Supply and Demand, and Non-Price Determinants of Each, 2014).

Likewise, the determinants of supply include the price of the iPhone 6 as well as the quantities of units produced (initially pegged at 10 million). The reasons in which business organizations, like Apple, utilize information on determinants of demand and supply in their economic decision making are: to achieve the targeted profits and to plan for future growth (McGuigan, Moyer, & Harris, 2014). With targeted profits being achieved, the organization could plan on venturing into other profitable endeavors which would be consistent with their mission and vision, as well as the overall goals of the firm.

ReferencesECO550 Week 1 Scenario Script: Models of Supply and Demand, and Non-Price Determinants of Each. (2014).Etherington, D. (2014, September 22). Apple Sells 10 Million iPhone 6 And 6 Plus Devices During Launch Weekend. Retrieved October 8, 2014, from Tech Crunch: http://techcrunch.com/2014/09/22/apple-sells-10-million-iphone-6-and-6-plus-devices-during-launch-weekend/McGuigan, J., Moyer, R., & Harris, F. (2014). Managerial Economics: Applications, Strategy and Tactics. Cengage Learning.