Assignment Name Assignment The two macroeconomic principles in the simulation are investments and employment; these have been coupled as macroeconomic because these concepts will help individuals as well as firms to understand their own standing with respect to prosperity…
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The shift in the demand curve in the simulation may take place because of any determinant other than price; therefore, there may be a shift in the demand curve due to the availability of a supermarket or grocery store near the apartment because if people are not able to find a store for daily needs near to their homes, that would not encourage them to buy the apartment. Furthermore, if there is a change in the prices or the quality of the Oakridge Builders’ homes, then the consumers may buy those and not the Goodlife apartments. This shift would reduce the number of homes being sold to families and thus the curve would go below the equilibrium price level. The supply curve would mostly shift due to a technological innovation and thus if the Company is able to bring about some technological innovation in their homes, that is, make them more digitalized, have proper security systems inserted then consumers will be interested in purchasing them. This shift will cause an increase in the supply of homes to consumers and thus result in going above the equilibrium price level due to the want of more homes by consumers and possible lack of the equal amount of supply. From the simulation the supply and demand can be understood as follows; taking products made by Apple and Microsoft, they may be similar in terms of usage however are different in terms of technological innovation. In the same way, Goodlife apartments appeal to families more than the retail homes from Oakbridge thus providing a clear competition for Goodlife to dominate the market just like Apple does even though it produces more expensive products, but it has a certain unique selling price. The concepts of microeconomics help in understanding the factors that affect supply and demand shifts on the equilibrium price and quantity as they talk about the shifts on an individual level; for example, if in a household, an individual had to choose between buying tea or coffee as a preferred beverage, the prices of the same would affect his personal choice. Furthermore, if there was a shortage of supply of one of them, he would go for the other and similarly, if there was an increase in the price of one, he would choose the other as a substitute. This would affect the demand and supply curves to move up and down affecting the equilibrium price levels as per the quantities. The concepts of macroeconomics on the other hand refer to an aggregate demand and aggregate supply which takes place on a market level taking into account the personal needs and choices of all the consumers in a given area. Thus, from the point of view of households as well as firms, the factors that affects the shifts in demand and supply curves in macroeconomics may be understood by looking at the aggregate equilibrium price and quantity levels. Price elasticity helps in understanding how an individual’s demand can be lowered or increased by fixing a certain price for a particular commodity. As seen in the simulation, when the prices for the apartments are lowered, the demand for the same will be higher. At a higher price however, the demand will remain consistent for the group of people belonging to the category that can afford the apartment. At this point, the supply of the number of apartments is not taken into consideration to determine where the price of a single apartment will be set. The main
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This paper is aimed at analyzing the supply and demand theories as have been used it microeconomics. Demand is the total quantity of goods that a consumer is willing and able to buy from the market. There exists an individual demand as well as a market demand.
The interplay of these factors makes up the law of supply and demand which governs the dynamics of the market and affects the price of goods and services (Englander and Moy 291). II. How a change in demand for a good or service in one market can have an effect on the supply of a different good or service in another market.
Demand refers to the quantity of a commodity that an individual desires to have and the supply is the ability of the producer to be able to provide that particular quantity and commodity to the individual who requires it.The economic problem of scarcity refers to the problem of choice that most people have because their purchasing power is limited, or the ability to purchase products is limited despite them having a high demand for the commodities they wish to purchase, however at the same time, they have scarce options to choose from in order to make the best choices with their given purchasing power or wealth bundles.
The very recent mega blast by apple I phone 5 has astonished people around the world, its brilliant success has been the headline strokes all over (Trudy Muller , 2012). Supply and Demand The demand graph for the iphone 5 has taken an interesting and profitable turn in market, and its popularity among people is increasing day by day.
On the other hand, an increase in price of goods and services may lead to an increase in supply as the suppliers are willing to supply at higher prices to make substantial profits (Mankiw, 2011). The simulation will focus on micro and macro economics, shifts in supply and demand curves as well as their affect on equilibrium prices and quantity.
The paper discusses the key issues discussed in the article and also explains how it relates to the syllabus that is given. The chosen article is about demand supply and market equilibrium. It also discusses the elasticity of demand of a product. To start with, the article describes utility as the amount of satisfaction that a consumer derives from consumption of a good.
Seven crucial factors have been identified by the U.S. Energy Information Administration which contribute to as well as influence “the spot price of crude oil” (Fessler, 2011). These factors are production, supply, global oil stock, financial markets, demand, non-OECD demand and spot market.
In the current world where price is a paramount factor, supply and demand of substitute products can be significantly influenced by changing customer interests. This paper will specifically analyze various factors affecting the supply and demand of cell phones with particular attention given to effects of macroeconomic events and global economy.
The firm can thus place its price wherever it wishes to, and it may or may not take into account the demand of the people in order to supply. If the firm places the price of the product at a higher range then the consumers are bound to buy it at that price due to the lack of
ETFs can also be referred to as the middle children when it comes to the trading of stocks. Exchange traded funds are more innovative financial products offering the benefits of mutual funds while at the same time also offering the
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