We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Explain the neoclassical arguments that (a) the price of a good reflects how scare it is, and (b) competitive markets are efficient. Make sure that you go through all the supporting concepts, such as the nature of supply and demand, that underpin these a - Essay Example

Comments (0)
Summary
Furthermore, demand and supply go on further in determining the scarcity of a good or service. The creation of scarcity, in essence,…
Download full paper
GRAB THE BEST PAPER
Explain the neoclassical arguments that (a) the price of a good reflects how scare it is, and (b) competitive markets are efficient. Make sure that you go through all the supporting concepts, such as the nature of supply and demand, that underpin these a
Read TextPreview

Extract of sample
Explain the neoclassical arguments that (a) the price of a good reflects how scare it is, and (b) competitive markets are efficient. Make sure that you go through all the supporting concepts, such as the nature of supply and demand, that underpin these a

Download file to see previous pages... The idea behind supply and demand concept is a huge factor when it comes to price and scarcity of goods and services. On the other hand, a competitive market entails a market in which many buyers and suppliers exist, and as a result, there is eradication of the idea of monopoly and creation of competition. A competitive market is efficient since no single entity, be it buyers or suppliers can control or influence the pricing of goods and services to their advantage. Additionally, in a competitive market, the high competition among buyers determines the demand price while the high competition among supplies determines the supply price. This paper is an explanation of the neoclassical arguments that the price of a good reflects how scarce it is, and that competitive markets are efficient.
The price of a good can be classified as being high, low or moderate. The three classifications are highly influence by demand and supply of goods and services in the market. Moreover, the number of sellers and buyers in the market influence the demand and supply of goods and services. A high number of buyers in the market result, in a high demand, while a low number of buyers result in about a low demand. A high number of sellers in the market result in a high supply while a low number of sellers result in a low supply. A price of a commodity will be high when the supply of the commodity will not match up the demand by buyers. Alternatively, a price of a commodity will be low when its supply is higher than its demand thus creating a surplus. A moderate price comes as a result of market equilibrium that is when the supply of commodities equals the demand for commodities. In essence, the price for a good or a service fluctuates according to its supply, and the supply can be scarce, moderate or abundant. In relation to the theory of demand and supply when a market has many suppliers there will be an abundant supply of goods and services and in turn, a competition for buyers ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Supply and demand: Markets, Prices and price setting
Fig. 2. Shift of demand In Fig. 2, we see a new demand curve that is a result of substitute of soya milk. Here we see that the original demand for milk is DA, and a shift to substitute milk leads to a new demand curve which is DB. This means that the demand for milk will be reduced.
4 Pages(1000 words)Admission/Application Essay
How the theory of supply and demand affects activities in the property markets
a price at which the quantity of goods demanded equals the quantity supplied. The property market also operates in somewhat a similar manner. The main factors outlaying the demand for property include the demographic structure of a society along with the level of disposable income.
6 Pages(1500 words)Essay
Define supply and explain what causes change (shifts) of supply and how supply can determine prices. Explain what is price elast
Price is a key determinant in the product quantity for supply. Supply is usually monitored by a specific graph drawn based on a supply schedule. The Supply schedule comprises of price listed against quantities supplied and the graph is referred to as a supply curve as shown in Figure 1.
5 Pages(1250 words)Essay
Supply, Demand and Equilibrium Price
The above diagram represents on way in which Mrs. Acres can act. Here, suppose the initial equilibrium occurs at the point where Demand meets Supply curve at D = S. The equilibrium quantity here is 8000 pies at a price of $4.5. However, Mrs. Acres find that this quantity is not meeting the current demand.
4 Pages(1000 words)Essay
Supply and demand: markets, prices and price setting
The basic cost concepts were easy to understand, but I did try the exercises related to marginal costs and to diminishing returns, which were harder to understand and apply. The exercises were useful in clarifying and applying these concepts.
2 Pages(500 words)Essay
Case- 2 Supply and demand: Markets, Prices and price setting
At this juncture, we assume that there is no control or administration by government in the production, supply or distribution of milk. Milk is produced, marketed or traded in the totally
4 Pages(1000 words)Essay
Supply and demand: Markets, Prices and price setting
With an increase in the demand, there will also be an increase in the prices. Coffee prices will hence increase all over the market since suppliers want to increase their revenues from the increased demand. When the producers see that
4 Pages(1000 words)Essay
Using supply and demand analysis, examine how recent events over 2012/13 have affected short and long run price changes in commodity markets
Being a basic commodity, food has an inelastic demand. This implies that demand for food does not correspond to prices in the ordinary sense (Shaw 630). For instance, the prices of corn, wheat, soybeans rose by 4% within the last six months. However, demand for these
1 Pages(250 words)Essay
Supply and Demand Concepts
Price floor is government regulation that set a base price for particular goods. When a price floor is set at 16, is become bidding because it is way above the equilibrium price
4 Pages(1000 words)Assignment
The nature - nurture controversy is a constantly recurring theme in developmental psychology. In an essay, discuss this issue, making sure that you cover the following points: (a) define the terms nature and nurture; (b) discuss the implications of takin
In psychology, nature’s definition leans on genes and other factors that human beings can inherit affecting their physique and other aspects that define their personality. Psychologists, scientists and
9 Pages(2250 words)Essay
Let us find you another Essay on topic Explain the neoclassical arguments that (a) the price of a good reflects how scare it is, and (b) competitive markets are efficient. Make sure that you go through all the supporting concepts, such as the nature of supply and demand, that underpin these a for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us