Sample Essay On Supply And Demand,References
WebIn the world today supply and demand is perhaps one of the most fundamental principles that exists for economics and the backbone of a market economy. Supply is represented by how much the market can offer. The quantity supplied refers to the WebSupply and demand have relationship, and affects price in different ways. However, they are they are believed to be at equilibrium when both demand and supply are equal. WebView Supply and Demand blogger.com from PSY PSY/ at University of Phoenix. Supply and Demand / Macroeconomics Essay Name Economics – Name of Instructor 1 WebMar 9, · Demand states that people will buy more of a product at a lower price than at a higher price, if nothing changes states that at a lower price, more people can WebDec 2, · Supply and Demand. Demand for a product indicates the relationship between the price of the product and the quantity demanded, or the amount of a ... read more
The above demand — supply mismatch has had its consequences felt by the consumers of these services in the US. Basic economics dictate that the most likely effect when demand outstrips supply is the rise in price of goods and services. Mercer , p. Stewart concurs in his analysis when he says that the shortage of endocrinologists negatively impacted access to care by patients with diabetes, obesity, adrenal disease and thyroid cancer. This shortage of endocrinologist has led to limited access and care of endocrinology patients. There are verified reports of patients waiting up to 6 months to gain access to an endocrinologist.
As expected, the costs associated with accessing the services have risen. This is partly because of the negative consequences of the failure to treat the condition appropriately due to waiting time and largely because of the economical factor of less supply. Instead they have adopted the volume solution to resolve the problem. Additionally, the industry has adopted an approach of engaging primary care physicians to handle endocrinology patients. This primarily aims at availing wide access to the services to the people who need them. Rizza et al , p. According to a supply model developed by the Rizza, the difference between the demand and supply of these services will reduce in the first decade of the 21 st century as new professionals enter the field.
However, expected retirement of many endocrinologists who will be above 50 years during the decade will widen the demand and supply mismatch. There is sufficient reason to believe that improved supply of endocrinologists to the market in the US will eliminate most of the problems brought by the shortage. There is need to prop up the supply of endocrinologists in the US through the implementation of measures influenced by the factors of supply. Secondly, there is need to raise the retirement age of medical practitioners but the raise should mainly target the endocrinology profession. That way the rate of attrition from the profession will be stemmed and effectively improving supply of the professionals.
The above factors are expected to boost supply of the professionals to the market to end the bridge the gap between their demand supply deficits. The above analysis represents the integration of the principles of economics especially demand and supply in the healthcare industry. Medical services in this case endocrinology are treated like any other commodity that I available in the market for the highest bidder. Like in pure economics, the economic variables of cost and access to good and services are affected by demand and supply. A rational analysis on the number of professionals in the field of endocrinology in the US and the demand that is currently available easily suggests a deficit in supply. The mismatch between the forces of demand and supply therefore has led to the rise n the costs associated with endocrinology services.
Additionally, access to the services has also been affected. For example, demand for cars might be influenced by changes in prices of substitutes: If the price for public transportation whether for train, bus, or subway or motorcycles decreases dramatically might lead to less demand for cars Mankiw, That is because consumers can pay less money and still receive similar benefits. Another key demand side factor is interest rates charged on car loans or the availability of credit. Since a majority of cars are bought on credit, a reduction in interest rates would lower the cost of financing and ultimately the car making cars more attractive to consumers. By the same token, if the standards for credit availability were lowered, this might also lead to greater demand for cars.
A contraction in credit or higher interest rates would likely lead to a contraction in demand as the price of the car increases. For example, many car makers are making more energy efficient cars that have less of an impact on the environment. Lastly, consumer sentiment plays a key role in shaping demand for automobiles: During the depths of the global recession, demand for cars plummeted as consumer sentiment over the future, including the ability to make car payments, deteriorated. As the economy and consumer sentiment gradually improved, so did the market for automobiles.
The first factor is the price of inputs used in building cars. Cars are composed of many parts that vary in price over time. If the prices of inputs increase, the manufacturer has to decide whether to raise the price of the car which may lead to decreased supply. On the other hand, if there is a significant decrease in the price of inputs, the car manufacturer might be willing to supply more cars. The second main factor in deciding supply is the market structure of the car industry. Traditionally, the car industry is extremely competitive, particularly after car manufacturers from India and China have now started to export cars. With an increase in the number of manufacturers, and arguably competitiveness in the car industry, manufacturers may choose to reduce supply in order to avoid the situation of unsold cars.
On the other hand, if there is an overall decrease in the number of manufacturers, other manufacturers may choose to increase supply to make up for lost production in the market. For example, a producer may look at factors such as consumer demand and price in order to decide how many cars to supply in the market. Future expectations are very important as car manufacturers typically make production decisions years in the future based on existing trends. Demand and supply for cars may also have an impact on complementary goods such as GPS tracking systems. GPS systems are a complementary good because car manufacturers or consumers who purchase cars also purchase GPS systems.
Another complementary good for cars is gasoline. Gasoline must be purchased in order for a car to properly operate. Higher prices for cars may have an adverse impact on the quantity of gas purchased, especially during times of an economic downturn or high gas prices. An increase in the price of gas may also influence the quantity and type of car purchased. A demand schedule shows the different quantities that will be bought of a good, given various prices. This demand may reflect an individual schedule of a consumer, or a market schedule of a group consumers. Order custom essay Supply And Demand Essay with free plagiarism report.
A demand function show how the annuity demanded of a good is dependent on its determinants, the most important of which is the price of the goods itself. The demand curve is the graphical presentation of the demand schedule. Supply The supply of product is the quantity of goods that sellers are willing to sell. The supply schedule shown the different quantities that will be offered for sale at various price. This supply schedule may reflect an individual schedule of only one producer, or the market schedule showing the aggregate supply of a group of sellers or producers.
A supply function shows how the quantity offered for sale of a good is dependent on its determinants, the most important of which is the price of the good itself. The supply curve is the graphical presentation of the supply schedule. Supply schedule Economics By lamentation good and the quantity supplied. A supply curve is a graph that illustrates that relationship between the price of a good and the quantity supplied. Under the assumption of perfect competition, supply is determined by marginal cost. Firms will produce additional output while the cost of producing an extra unit of output is less Han the price they would receive. By its very nature, conceptualizing a supply curve requires the firm to be a perfect competitor, namely requires the firm to have no influence over the market price.
This is true because each point on the supply curve is the answer to the question "If this firm is faced with this potential price, how much output will it be able to and willing to sell? If a firm has market power, its decision of how much output to provide to the market influences the market price, then the firm is not "faced with" any price, and the question is meaningless. Economists distinguish between the supply curve of an individual firm and between the market supply curve. The market supply curve is obtained by summing the quantities supplied by all suppliers at each potential price. Thus, in the graph of the supply curve, individual firms' supply curves are added horizontally to obtain the market supply curve.
Just like the supply curves reflect marginal cost curves, demand curves are determined by marginal utility curves. Consumers will be willing to buy a given quantity of a good, at a given price, if the marginal utility of additional consumption is equal to the opportunity cost determined by the price, that is, the marginal utility of alternative consumption choices. The demand schedule is defined as the willingness and ability of a consumer to purchase a given product in a given frame of time.
Paper Types. You are free to use it as an inspiration or a source for your own work. The everyday occurrence of buying a new car has profound lessons for the discipline of economics. On the demand side, there are numerous factors that affect purchasing a new car. For example, demand for cars might be influenced by changes in prices of substitutes: If the price for public transportation whether for train, bus, or subway or motorcycles decreases dramatically might lead to less demand for cars Mankiw, That is because consumers can pay less money and still receive similar benefits.
Another key demand side factor is interest rates charged on car loans or the availability of credit. Since a majority of cars are bought on credit, a reduction in interest rates would lower the cost of financing and ultimately the car making cars more attractive to consumers. By the same token, if the standards for credit availability were lowered, this might also lead to greater demand for cars. A contraction in credit or higher interest rates would likely lead to a contraction in demand as the price of the car increases.
For example, many car makers are making more energy efficient cars that have less of an impact on the environment. Lastly, consumer sentiment plays a key role in shaping demand for automobiles: During the depths of the global recession, demand for cars plummeted as consumer sentiment over the future, including the ability to make car payments, deteriorated. As the economy and consumer sentiment gradually improved, so did the market for automobiles. The first factor is the price of inputs used in building cars. Cars are composed of many parts that vary in price over time. If the prices of inputs increase, the manufacturer has to decide whether to raise the price of the car which may lead to decreased supply. On the other hand, if there is a significant decrease in the price of inputs, the car manufacturer might be willing to supply more cars.
The second main factor in deciding supply is the market structure of the car industry. Traditionally, the car industry is extremely competitive, particularly after car manufacturers from India and China have now started to export cars. With an increase in the number of manufacturers, and arguably competitiveness in the car industry, manufacturers may choose to reduce supply in order to avoid the situation of unsold cars. On the other hand, if there is an overall decrease in the number of manufacturers, other manufacturers may choose to increase supply to make up for lost production in the market. For example, a producer may look at factors such as consumer demand and price in order to decide how many cars to supply in the market. Future expectations are very important as car manufacturers typically make production decisions years in the future based on existing trends.
Demand and supply for cars may also have an impact on complementary goods such as GPS tracking systems. GPS systems are a complementary good because car manufacturers or consumers who purchase cars also purchase GPS systems. Another complementary good for cars is gasoline. Gasoline must be purchased in order for a car to properly operate. Higher prices for cars may have an adverse impact on the quantity of gas purchased, especially during times of an economic downturn or high gas prices. An increase in the price of gas may also influence the quantity and type of car purchased. Due to the wide range of cars available, price elasticity plays a significant role in the type of car purchased.
For example, due to the segmented nature of the car market, lower-priced cars likely have a higher price elasticity of demand. For example, if Ford raises prices too high on a lower-end model, consumers will likely simply purchase another type of car. At the upper end of the car market, however, price elasticity of demand is likely quite low. This is because consumers at higher price levels are less sensitive to changes in price. Pre-Event Phase, Event Phase, and Post-Event Phase, Essay Example. Art and Artist Interpretation, Research Paper Example. Need a professionally written Custom Essay? Right now, you can get a professionally written essay in any discipline with a. We're now sending you a link to download your e-book, please check your e-mail.
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Get a Free E-Book! Supply and Demand, Essay Example. Pages: 3 Words: Essay. This Essay was written by one of our professional writers. Need a custom Essay written for you? HIRE A WRITER! References Mankiw, G. Principles of Economics. New York: Southwestern Press. Baumol, W. Microeconomics Policy. Stuck with your Essay? Get in touch with one of our experts for instant help! Messenger Live chat. Tags: APA Economics Undergraduate. Pre-Event Phase, Event Phase, and Post-Event Phase, Essay Example Essay. Art and Artist Interpretation, Research Paper Example Research Paper. Get instant essay writing help! It's a Free, No-Obligation Inquiry!
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Demand and Supply Essay,Introduction
WebMar 9, · Demand states that people will buy more of a product at a lower price than at a higher price, if nothing changes states that at a lower price, more people can WebDec 2, · Supply and Demand. Demand for a product indicates the relationship between the price of the product and the quantity demanded, or the amount of a WebSupply and demand have relationship, and affects price in different ways. However, they are they are believed to be at equilibrium when both demand and supply are equal. WebView Supply and Demand blogger.com from PSY PSY/ at University of Phoenix. Supply and Demand / Macroeconomics Essay Name Economics – Name of Instructor 1 WebNov 12, · Sample Essay On Supply And Demand Type of paper: Essay Topic: Oil, Demand, Curve, Production, Economics, Energy, Vehicles, New York Pages: 2 Words: WebMay 16, · According to a supply model developed by the Rizza, the difference between the demand and supply of these services will reduce in the first decade of ... read more
The discussion will focus on the above principles of economics as they apply to the healthcare industry in the US. Custom Writing. The measures suggested in the last part of the discussion are meant to increase the supply through the supply chain which in this case is the training institutions. Please try again later. Forgot password? Cars are composed of many parts that vary in price over time.
The above demand — supply mismatch has had its consequences felt by the consumers of these services in the US. According to the article, the change in the oil price and quantity can be explained by the economics of demand and supply Krauss, Sec. The elasticity in microeconomics as explained by John is the relative change in the demand with respect to the changes in the pricing of the commodity in question. com, Dec There supply and demand essay both hardware and software complements of the computer, supply and demand essay. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly.
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