Supply and demand essay

Supply and demand essay

 · The law of demand and supply: The relationship between demand and supply underlie the forces behind the allocation of resources. In market economy theories, demand and supply theory will allocate resources in the most efficient way possible. How? By the following of demand and the law of supply. Generally, if there is a low supply and a high demand, the price will be high Supply And Demand Essay Words8 Pages Laws of Supply and Demand The market price of a good is determined by both the supply and demand for it. In the world today supply and demand is perhaps one of the most fundamental principles that exists for economics and the backbone of Supply and Demand The relationship between demand and supply is that an increase in the sale price will result in a decrease in the quantity demanded. Supply is just the opposite side of demand. There are some factors that have influenced the demand for and supply of palladium

Supply & Demand Essay Examples & Outline

One of the most fundamental basics of micro-economics is the supply and demand of services or products of a given nature. Despite its frequent use, the analysis of the supply and demand of the products in the market provides a very basic understanding of the market nature and what should be done to promote either of the factors when it is down John, The changes in the prices of one product can have some effects on the prices of its complements.

On the other hand, supply and demand essay, substitute products have a direct relationship because one can be replaced for the other. This effect is the genesis of the marketing strategies that we witness in the modern world. Increase in marketing strategies has been largely contributed by the increases in the number of the substitute products available in the market. In essence, the higher the demand of a certain commodity or services, supply and demand essay, the higher the number of competitors in the market supply and demand essay for the commodity or the services by supplying the need to the market John, This analysis is going to discuss the demand and the supply of a commodity which is supply and demand essay computer in this case.

Some of the factors that affect the demand and the supply of a computer include the following; the initial factor that can affect the supply of computer to a particular region is the demand of the computer services in the region, supply and demand essay.

If a region has less demand for computer services, there is going to be less demand supply and demand essay computers in the region, supply and demand essay.

The supply of the computers is also limited by the availability of the substitute products like the PDA and advanced phone handsets that can perfectly perform the task of a computer. Additionally, the demand of the computers is subject to the availability of services that requires computers, such activities includes the Cyber Café, computer learning center, major offices which computer systems required in a given region among other factors that will demand the services of computers.

In our case, some of the most common substitute of the computer includes; Personal Digital Assistant PDA and advanced mobile handsets, supply and demand essay.

These two products are the major replacement or substitutes of the computer. They are the substitutes of the computer because one can use the product instead of opting to buy a computer. A PDA is a typical example of a computer substitute because it does the functions of the computer with minimal effort and space unlike the computer which occupies space and hence creates inconvenience to the user while travelling, supply and demand essay. A mobile phone also creates a typical substitute of a computer because of its ability to perform the task of a computer with an added advantage of its size, supply and demand essay.

The two products are the typical examples of the computer substitutes available in the market. From the basics of microeconomics according to Williama complement of a product is the product that is needed for the primary product to work properly. In essence, some of the most basic complements of a computer are the peripherals such as the printer, joysticks, scanners, the internet connection, and software systems.

There are both hardware and software complements supply and demand essay the computer. Software developers are usually the primary developers of the complements of a computer system. 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.

It is usually expressed in a ratio as supply and demand essay a typical graph for this ratio is normally given as shown below;, supply and demand essay. With the increase in the necessity of the product which is a computer in this case and keeping the price constant with other external factors, in an ideal situation, it is expected that the price elasticity of the of the computer will be positive.

In the real world this might not be the case because of the assumptions made; the increase in the necessity will lead to increase in the number of competitors who are substitutes of the product. On the other hand, the increase in the necessity may cause an increase in the price which may result in a constant or not effect on the elasticity of the product. This paper has succinctly discussed the factors that influence the nature of the demands and the supply of a commodity which is taken to be a computer in this case, supply and demand essay.

The demand of the computer is subject to its substitutes and to some extent its complements, it complements simply adds value to the computer while its substitutes reduces its demand in the market. The price elasticity of the commodity is subject to the changes in demand as a ratio of the price. The necessity of the product is thus supposed to increase its price elasticity; however this is not always the case because of other influencing factors. John, B. Chicago, IL: Financial Times Prentice Hall.

William, J. Microeconomics: Principles and Policy. New York, NY: Cengage Learning. Need a custom Essay sample written from scratch by professional specifically for you? certified writers online. Select a citation style:. Supply and Demand Paper. We use cookies to give you the best experience possible. If you continue, supply and demand essay, we will assume that you agree to our Cookies Policy.

Table of Contents. Introduction Factors that can change supply and demand Substitutes of the product Complements of the product How necessity impacts on the price elasticity of the product Conclusion References. Learn More. We will write a custom Essay on Supply and Demand Paper specifically for you! This essay on Supply and Demand Paper was written and submitted by your fellow student.

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How to trade Supply and Demand? / Trading talks

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Sample Economic Essay on Determinants of Supply and Demand

 · Demand is defined as quantitative reflection of orientation of the people, at a particular price, per unit of clock time. Demand for commodity is affected read full [Essay Sample] for free  · Essay Homework Help offers academic writing services to students either struggling to write their own papers or who lack sufficient time to complete their paper on time. Whether you are looking for extra hours to be with your family, ill or you are running out of time, simply contact our MBA Writers via the order button below and we will be glad to assist Supply and Demand The relationship between demand and supply is that an increase in the sale price will result in a decrease in the quantity demanded. Supply is just the opposite side of demand. There are some factors that have influenced the demand for and supply of palladium