...ECO 561 WEEK 2 COMPLETE A+ Graded Tutorial Available At: http://hwsoloutions.com/?product=eco-561-week-2-complete Visit Our website: http://hwsoloutions.com/ Product Description PRODUCT DESCRIPTION ECO 561 Week 2 Complete Learning Team Deliverable The team debated over three different cost or expense concepts in business economics. The first topic dealt with fixed and variable costs and how these costs related to supply and demand. Fixed costs are costs that will not vary regardless of the changing outputs and paid out even if the outputs are zero. On the other hand, variable costs are the cost that will vary based on the levels of outputs produced by the business and those costs changes directly with the level of outputs. Items such as raw materials and most labor cost are variable because they can change over time (McConnell, Brue & Flynn, 2009). Understanding both the fixed cost and the variable cost would help business get a better handle on the total cost associated with operating a business. In business economics, cost and knowing the effecting controllers, allows managers to adjust accordingly. Businesses overall, need to know where money is going, when and where they need to cut expenses, and when they need to produce more to offset the cost. As the demand for a product or service increase, the company would need to understand when it should increase its supply for that product or service. It seems simple, but there is much more that goes into increasing...
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...Market Equilibration Process Paper Economics ECO/561 March 18, 2015 Market Equilibration Process Paper In this paper I will describe the “Market Equilibration Process” which identifies the basic condition in which all of these economic forces are balanced. There are many variables that enable these forces to find this equilibration; the primary driver is supply and demand. The law of demand is when your customers purchase more of the goods as the price decreases and less as the price goes up. This is driven primarily through social trends, followed by price and personal choice. The law of supply is what is currently available to market, many producers will increase supply as demands increases. The efficient markets theory basically states that it is impossible to beat the market, as it is always within the means of all relevant information. All of these theories begin with surplus and shortage which occurs in all markets with all market goods. When there is a surplus the price comes down and opposite when there is a shortage the price will increase. In essence what the “Market Equilibration Process” theory suggests is that any product or service trends toward what the market is willing to pay based on demand and supply. I will apply this theory in home values and availability, because of high demand real estate has seen an increase in the price of most homes for sale especially when supply is low. In many communities throughout the State of California families have been...
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...Market Equilibration Process Paper Adekola Ayantola ECO/561 November19, 2012 Market Equilibration Process Paper Market equilibration process in economics is the ability put the supply function and demand function together to obtain market equilibrium. The Demand and supply principle find the price and the output of the item in question. In a situation in which the supply quantity is fixed and assigned the evaluated function of the demand at that particular price will determine the supply price. The market equilibration provides opportunity for business organization to adapt to various changes that happens in the market in their field, to guide the management in adjusting to the demands by adjusting the supply to create market equilibrium, and this will enable the producers and purchasers to be on the same par on price and products. For equilibrium to exist there must be a demand of the product or products or services. There must be willing buyers with available resources to purchase the products or services at the agreed price. Once the need has been established the products can be produced or developed. The product is supplied to the market at the price the consumer is willing to pay, and this thus creates market equilibrium. In a situation in which there is an imbalance in one side the equilibrium is affected, and there is a shift more to once side. In a situation of this nature there may be a shortage of supply and may cause price increase that may result in competitors...
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...Running Header: Market Equilibration Process Paper Labor Demand and Supply Economics ECO/561 April 21, 2011 Running Header: Market Equilibration Process Paper Introduction The purpose of this paper is to relate the concepts of the market equilibrating process to a prior real-world experience occurring in a free market. The market equilibrating process will be explained and the following components will be considered in the explanation; Law of demand and the determinants of demand, law of supply and the determinants of supply, labor demand and supply. Law of Demand and the Determinants of Demand According to Economics: Principles, problems, and politics, a fundamental characteristic of demand is this: Other things equal, as price falls, the quantity demanded rises, and as price rises, the quantity demanded falls. In short, there is a negative or inverse relationship between price and quantity demanded. Economists call this inverse relationship the law of demand and the determinants are the “other things equal” in the relationship between price and quantity demanded (McConnell, Brue and Flynn, 2009). Law of Supply and the Determinants of Supply According to Economics: Principles, problems, and politics, the law of supply states that as price rises, the quantity supplied rises; as price falls, the quantity supplied falls and the basic determinants of supply are, resource prices, technology, taxes and subsidies, prices of other goods, producer expectations, and the number...
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...Market Equilibration Process Paper ECO/561 June 7, 2012 Dr. Jill Trask Market Equilibration Process Paper Market equilibration can be accomplished when market price established through competition so the amount of good bought is equal to the number of goods sold. Supply and demand would be factors to change the market equilibrium. In the oil industry market equilibrium is determined by the cost of oil, competitor’s prices, and technology. “As a price falls, the quantity demand rises, and as a price rises, the quantity demanded falls” (McConnell, Brue, & Flynn, 2009, p. 47). Consumers travel constantly to go to work, school, or vacation. This travel requires the use of some form of transportation whether it is train, airplane, or automobile. The transportation modes use a form of fuel to move the vehicles. Certain periods increase the demand for fuel or decrease the demand, for example holiday weekends would increase the demand. When the price of fuel increases a traveler will see an increase in an airline ticket or a train ticket. If the prices for the airline or train ticket are too much the traveler may choose to drive instead to keep their cost down, When the fuels prices rises so does the commuter train tickets, causing some commuters to find alternate ways to work, such as carpooling. As the fuel prices decrease so do transportation costs allowing individuals to travel more often in their choice of transportations rather than the economical choice. As...
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...Market Equilibration Process Paper David Campbell ECO/ 561 May 6, 2013 Professor Maria H. Ramjerdi Market Equilibration Process Paper There are many things that come with learning the concepts of supply and demand. It for one helps many people who are corporation owners have to the capability to make best of their income. The Market Equilibrating Process to us all is “the interaction of market demand and market supply adjusts the price to the point at which the quantities demanded and supplied are equal”, known as equilibrium price. Also known is that equilibrium quantity relates to corresponding quantity. A change in either demand or supply changes the equilibrium price and quantity (McConnell, Brue, & Flynn, 2009). Throughout this paper I will not only speak on market equilibrating process but also give my experience. The market equilibrating process is experienced many times through people’s lives but for me I see most examples through my finances. If looking at a supply curve, you would see my earnings and revenue. My amount outstanding and disbursements would be look at as my demand curve. The moment when my income reaches the same amount as my debts then that is known to be my equilibrium point. The equilibrium point is where I see the amount I am able to pay for with my balance due and income. Throughout understanding this concept I have noticed that there are many different things that can affect the curve for supply and demand. One thing that damages...
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...Marketing Equilibration Process Paper ECO/561 Marketing Equilibration Process Paper The market equilibrating process is the method or methods in which manufacturers tend on maintaining a balance between supply and demand reaching equilibrium. This is help by using competition between and among buyers and sellers sets off equilibrium process. For example firms with excess inventories cut prices to try to undersell their competition. As the price falls, quantity demanded rises, and quantity supplied falls. Buyers competing with one another for goods in short supply bid up price to try to capture some of the good as price goes up, demand falls and supply rises (McConnell, 2009). I think looking at an electronic device is a perfect example. Take the IPhone, the new versions are always in demand but the old versions are easily replaced. When AT&T had a monopoly on the IPhone other companies tried to put out products like the droid or update the blackberry so that it was able to compete with AT&T. Now that AT&T does not have the sole contract for this device there is still a demand but it is across the board and not solely with one company. The law of demand also affects the market equilibrating process. The law of demand in theory says that there is a negative relation between price and quantity demanded. For example if price goes up, quantity demanded goes down; if price goes down, quantity demanded goes up (McConnell, 2009). This can be seen when an IPhone was brand...
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...Market Equilibration Process Paper Marlene Toadlena ECO 561 March 02, 2015 Genevieve Turano Market Equilibration Process Paper During Hurricane Sandy, the city of New York experienced price gouging by merchants due to the increase in demand for many products. The supply is limited; therefore, many merchants decided they would be able to capitalize on the needs of the consumers. However, during the storm, public transportation was limited, and the buses weren't running due to the cost of fuel, trains, and the subways were at a standstill due to the flooding. Uber, a car service company, came into the picture for transportation. This paper will show how the demand and supply of transport services were affected by Hurricane Sandy, during a time of disaster, and how the consumers reacted to the changes in prices. The Law of Supply and Demand Maddalena (2012) states, “It is all a matter of supply and demand and what happens when one or both are disrupted from their normal point. When a market is functioning normally supply and demand intersect at a point (called the equilibrium point) which bases the best price that the market is willing to pay as well as the best quantity that the market will provide. When a market is disrupted due to some external event, supply and demand can change causing a new equilibrium point and a new price and quantity” (Maddalena, 2012). With the events taking place during Hurricane Sandy, the Uber transportation company took advantage of the consumers...
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...Market Equilibration Process Jose Jacquez ECO/561 Prof. Daniel Rowe Market Equilibration Process This paper is written to describe a real world experience in a free market highlighting change that occurred in supply or demand as a result of world events that led to the need for a move between two equilibrium states. I will explain the process of how that movement occurred using behavior of consumers and suppliers while using graphs as indicated. Real World experience in a free Market. (Using Supply and Demand, Chap.5), Prior to the 1997-99 economic downturns, Indonesia had made tremendous progress in reducing poverty and food insecurity. Many more people fell into poverty as a result of the economic downturn, the survey indicated poverty headcount increased from 23 million to just under 50 million persons, Tabor S.R. & Sawit M. H. (2001). The author noted that absolute poverty in Indonesia is closely linked to food insecurity and malnutrition. Indonesia policy makers have historically defined food security in terms of the nation’s ability to provide itself with adequate supplies of rice at an affordable price. With such limitation, it is no wonder that people from this region have gone out to include such protein rich food stuffs as bugs and beetles. Large numbers of poor people were involved in rice production efforts to promote higher levels of domestic production capacity hoping to reduce long run poverty. In effort to describe the serious nature of the crisis, in...
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...Market Equilibration Process Paper ECO/561 April 20, 2015 Market Equilibration Process Paper Economics studies supply and demand and what effects they have on everyday business. Supply and demand work together to paint a picture of market conditions for the business. Their cause and effects are called determinants. As determinants affect one it will also affect the other. To balance the cause and effects is to reach equilibrium. Searching for market equilibrium is essential because when a business does not have equilibrium we experience such issues as surplus or a shortage. This paper will explore the laws of supply, demand and their determinants and the quest for market equalization is it pertains to the business world. Demand is the downward sloping line and we must consider what happens as we move up and down the curve and what causes these changes, also known as determinants. For example, the demand for Internet service has been increasing steadily over the last few years. See below, the graph displays that as the quantity of demand shifts down the price moves in earnest down the slope. Some basic determinants that cause changes to the demand involve consumer preferences, number of buyers, consumer income, prices of related goods, and consumer expectations.(McConnell, Brue, & Flynn, 2009) As we think about demand we must also consider the two types. There is a change in demand and a change in quantity demanded. The change in demand will shift our line...
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...Market Equilibration Process Terry Martin ECO/561 April 22, 2014 Eric Hogan Market Equilibration Process Supply and demand is considered one of the most important factors of economics. According to www.ingimayne.com, supply and demand set the price and the amount of a good that will be produced. For instance, if the demand is high the price will less, but when the price is high the demand the demand will be less. In addition, demand is the quantity of a product or service desired by the buyer and supply is how much the market can actually offer. This is also called the supply relationship. In my paper I will explain how the coffee prices rose in 2011 due to the increase demand and reduced coffee supply. In 2010, coffee prices increased more than fifty percent causing the price of coffee to rise tremendously. The short supply of Arabic coffee bean varietals are used for many gourmet coffee, premium coffee, and specialty coffee. They are used by Starbuck’s, Community Coffee, and other major coffee roasters and retailers. With the increase in professionals the demand for premium coffee has increased as well. In Brazil, India, and China this trend is particularly noticeable, placing a huge demand on coffee beans. Starbucks controls about seventy percent of China’s market share in the coffee industry. However, green coffee beans decreased and the higher cost of coffee worked its way to grocery shelves and in coffee houses and cafes across the country as well as the United...
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...May 20, 2013 Eco/561 Market Equilibration Process Paper When we are shopping for items we always want to make sure that we are getting the best deal for the money that we are spending. At the end of the day when making a major purchase that is going to have a major effect on my financial situation there are many things that I must consider, but more than anything I want to make sure that I am satisfied with my purchase. When both the supplier and consumer are satisfied with the price of the product, market equilibrium occurs. According to businessdictionary.com market equilibrium occurs when the supply of an item is exactly equal to its demand. Changes in the determinants of demand, such as consumer expectations can affect the equilibrium of a market. Supply determinants, such as producer expectations can cause a specific market to decrease or increase in supply, resulting in changes of equilibrium quantity. When market equilibrium occurs, both the buyer and seller get what they want. For example, when I was in the market to purchase a new vehicle there were a lot thins that I took into consideration. I previously purchased Kia spectra and put one hundred dollars down and just walked out the door with my new car. I was so excited about having my own car I didn’t really care or think about the specifics concerning my payments or my interest rates. This time around I wanted to make sure I was satisfied with my car purchase. I wanted a Volkswagen Jetta. After looking at...
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...Market Equilibration Process Paper Viviana Castro ECO/561 July 7th, 2014 Dr. Bryan Aguiar Market Equilibrium Many of us are not familiar with the term equilibrium even though it affects our daily lives. We encounter equilibrium almost every day at the grocery store when we purchase a vehicle, a house etc. Market Equilibrium is the price of a good or service when the supply of it is equal to the demand for it in the market. In other words this would reference to the price of any goods or services we purchase. The following paper will discuss the law of demand and its’ determinants. I will also discuss the law of supply and detriments of supply, market efficient theory and surplus and shortages. Laws of demand and determinants We all are familiar with the 2008 economic recession that occurred. It has not been too long as we are still in the recovering stages of that recession. That recession was caused by the collapse of the housing market. Which ended up not only placing the United States in a economic recession but the whole world felt it. It triggered a global economic recession to a certain extent. The recession was caused by the law of demand of houses. At first the demand for houses was so large that it started inflating or determinanting the home values and prices. [pic](Beggs, 2014). Law of supply and determinants of supply As the demand for homes raised so did the demand. Builders were building home left and right. There were some new home lots that...
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...Demand and Supply for DVD rental Fernando Miller ECO/561 4 November 2014 Saeed Tabriz Demand and Supply for DVD rental Introduction Purpose/Objective Background: The purpose of this paper is to provide real world experience using DVD rental market as well as to conduct analysis with examples of Demand and Supply. Element to consider in this paper are the laws of demand and supply and determinant factors; economic efficient markets and surplus and shortage. Market Conditions: DVD rental are slowly becoming outdated as demand for this product dwindles. Attributing factors broad about a shift in the supply and demand conditions may be attributed by new technological developments (supply) that has introduce other mediums (demand preference) of providing this type of entertainment service. Demand for this type of product is currently fulfilled by businesses such as Amazon, Netflix and Redbox who currently host the biggest market share for this type of product. Law of demand and determinants: McConnell (2009) defines the Law of Demand as “Other things equal, as price falls, the quantity demanded rises, and as price rises, the quantity demanded falls.” This law establishes an inverse relationship between price and quantity demanded (McConnell 2009). Determinants of demand are consumer factors that shift the demand curve factors such as income (increases and decrease), preferences (consumer choices), and number of buyers (increase or decrease). Price...
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...Business Proposal ECO/561: Economics September 23, 2013 Market Equilibration Process Paper Casey’s Nutrition World (CNW) operates as a specialty company of health and wellness products. CNW inventory includes minerals, vitamins, diet products and herbal supplement products as well as sports nutrition products and other wellness products for women 40 years and older. The company sells its products under CNW proprietary brands, including Ultimate Women, Immensely Megawoman, Fit and Lean, Pro Performer, and Pro Performer Activator, as well as under third-party brands. As of September 23, 2012, it had approximately 500 locations, including 760 retail locations in the United States with plans to expand internationally. The company sells its products through company-owned domestic retail stores and corporate partnerships. It also offers its products at CNW.com, SpicyVitamin.com, and drugstore.com. Identify market structure According to "WebMd, Vitamin Essentials As We Age" (2013), “As we age, our dietary requirements change, and we're also more focused on the diseases and disorders that accompany aging -- conditions that getting the right nutrients may help to prevent. So if you're in your 40s, 50s, or 60s, with things like menopause, retirement, and creaky bones looming a little larger in your daily life than they did in your 20s and 30s, and what vitamins we should be taking will most likely change” (para.1). CNW targets Women...
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