...Supply and Demand University of Phoenix XECO/212 When prospective homebuyers are looking to buy a new home in their area, they should consider the health their local real estate market is in. A prospective homebuyer needs to have an understanding of the many different economic trends a real estate market can have, There are many different business cycles and real estate trends that will have an affect on why a homebuyer would purchase a home and there are different monetary advantages depending on what kind of business cycle going on at the time. The major factor that has an influence on the price of housing is supply and demand of your local real estate. The most basic economic principal on a products price is supply and demand, Supply and demand determines the price of products based on the availability products. If a products demand is high and the supply is low then the price will increase, because people are buying large quantites of the product and if supply is high and the demand is low, It’s probable that people are not buying the product at that time so the price will generally be lower than it would if people were buying a large amount of the product. There will always be a need for homes because there will always be people that need them which makes homes inelastic. The terrorist attacks in September of 2001 created a substantial amount of uncertainty within our economy and spawned a consumer confidence crisis...
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...1 Supply and Demand Jesse Cisco XECO/212 8/13/2012 Jaime Medina Supply and Demand 2 I have chosen to write about purchasing a computer. There is such a variety of computers and with technology improving every day, many factors are encouraging or discouraging people to buy them. For example, when I bought my new computer I was very specific on what I was looking for in a new computer. I wanted a lot of memory, a very large monitor, and it had to have windows 7, and of course the price had to be reasonable. As a consumer, once I found a computer that had all these aspects, I purchased it without a second thought. There are factors that change the supply and demand curve for any good or service offered to consumers, this is what makes the manufacture know how much to sale and at what price. There are many aspects that could affect the demand of computers, for instance there would be a greater demand for computers when college started up. Consumers would be more willing to buy because they need to have computers to complete their school work. You might see a negative change in demand when college is on summer break and students are not worried about purchasing a computer. The holidays would show an upward change in the demand curve, because of the purchasing of computers as gifts. The sales during the holidays would have consumers willing to buy computers. Factors could also positively and negatively affect the supply curve as well. Price of manufacturing...
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...Checkpoint: Historical Example of Labor Supply and Demand Desiree Brownell XECO 212 2/15/2013 I chose to do my supply and demand response addressing the great depression. The great depression was a worldwide economic depression that started around 1929 and continued until about 1939. So far the great depression was and is the longest and most widespread depression that America has ever seen. During this particular point in history the demand for labor was higher than the demand for supply. America went through huge layoffs, employees were working for less, and companies where not hiring anymore. On October 29, 1929 the stock market crashed and there was billions of dollars lost by large businesses. The day the stock market crashed is still considered one of the defining factors and many hardships of the great depression. The impact on supply and demand of labor on one sector of the labor market- One of the biggest impacts of the supply and demand sector of the labor market was unemployment. 25 percent of all workers and 37 percent of all nonfarm workers were completely out of work. Employers were no longer hiring and could not afford to keep as many employees. Businesses where declining, therefore they were unable to pay as many employees wages and could not hire either. The factors that affected the labor demand and labor supply in the great depression where as I mentioned before unemployment, stock market crash, businesses no longer hiring, and employees were working...
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...UNDERSTANDING MARKET STRUCTURES Bart Ford XECO 212 Jan. 15, 2012 Dr. Jill Trask Abstract Before someone can identify how to maximize profits in different market structures they must first understand how those markets operate and the characteristics of each. This paper will identify three market structures monopoly, oligopoly, and competitive structures and explain each in detail, as they pertain to maximizing profits, how price is determined for goods, how output of goods is determined, barriers of entry into each market, and the role that each market plays in the economy. UNDERSTANDING MARKET STRUCTURES A monopoly structured market consists of one provider for a particular good or product. A monopoly exists when one firm controls a specific resource, such as diamonds. Diamonds are very rare and scarce as a resource, subsequently if one firm were to control the vast resource of diamonds they would inevitably control the market sale of diamonds. In this way, the diamond firm would be able to set the price for diamonds at whatever they wished. Also, by doing this the firm can look into ways to cut costs related to gathering the diamonds for sale. The firm could cut back on labor costs and only use minimal amounts of labor because they can control the output during any and all stages of the production phases. Barriers of entry into the monopolistic structure are great, and include: exclusive patent rights, extremely high initial start-up costs, economic, social...
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...LUDDITE REVOLT XECO/212 ROCHELL ROUNDTREE MARCH 22, 2012 GREG KROPKOWSKI What was the impact on the supply and demand of labor on one sector of the labor market? The impact on supply and demand was critical in the Luddite revolt. It all begins in 1779 when the failure of a Bill to regulate the frame-knitting industry had resulted in 300 frames being smashed and thrown into the streets. This is where the shortage of the supply begins. Then, by 1810 the Orders in Council and a change in fashion had led to deterioration in the standard of craftsmanship required in stocking making and a consequent cheapening of the trade. It was the attempt to intimidate some masters who brought in the new machines that caused Nottingham stocking knitters to smash the machines. (http://www.victorianweb.org/history/riots/luddites.html) Then the impact on the demand of Stocking knitting became predominantly a domestic industry, the stockier renting his frame from the Master and working in his own 'shop' using thread given to him by the Master; the finished items were handed back to the Master to sell. The frames were therefore scattered round the villages; this cause the demand to increase it then became easy for the Luddites to smash a frame and then disappear. Between March 1811 and February 1812 the supply of frames had been affected. About a thousand machines at the cost of between 6,000 and 10,000 were smashed. This had a damaging impact on the supply and demand (http://www.victorianweb...
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...XECO/212 Week 3 Check Point Historical Example of Labor supply and Demand: The Technology Boom of the 1990’s Today in 2013, I am 35 years old. You could pretty much say that I grew up during the technology boom of the 1990’s. Supply and demand, in my opinion served these times well. If you looked at the economic trends in the early 1990’s you see that these robust economic times started in March of 1990 and ended in recession in March of 2001. In 2001 President George W. Bush was commander in chief. The eight years of economic growth was during President Bill Clinton’s time in office and the technology economic trend grew from a pebble to a boulder. Jobs were plentiful and the stock market was thriving. This really had all supply and demand markets clicking on all cylinders. My take on supply and demand during the 90’s tech boom era is simple. New technology de4velopments came about slowly and then took off like a rocket ship in several forms. Home video game consoles, cellular phones, VHS and DVD formats, stereos, computer and vehicles all received a dramatic make over in the 1990’s The demand for more of these technological device formats became higher and higher at this point in history. The satisfaction of this demand required more development and manufacturing expansion. Factories needed to built or expanded. This construction need required more workers to be hired. The prosperity of construction in the 1990’s fed and strengthened the economy. Companies like Nintendo...
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...Supply and Demand of Labor Shannon Sampson XECO/212 James Nzokah April 20, 2012 Throughout history there have been many different events that have affected the supply and demand of labor, but there are few that have had as great of an effect as the Black Death. Considered to be one of the worst disasters to hit per industrial Europe, the Black Death swept through Europe from 1347 -1353, and was responsible for shifting the demand for labor and the supply of it in a way few other events have done at any point in history, Prior to the onset of the Black Death in 1347 (Routt, 2010) the demand for labor was lower than the supply of it, Europe was crowded and there was plenty of people to choose from to get the work done, so the lords were able to pay lower wages due to the shear fact that there was always someone willing to work for less just to put food on their table. In 1353 when all was said and done the population of the European people had been diminished by a staggering amount. (Routt, 2010) This lose in so many human lives shifted the ready supply of labor. Even though the demand for labor was less due to this same loss of life, it was still higher than the ready supply of labor. This shift to demand being higher than the supply meant that a person could charge more for their labors. This accrued all a crossed the labor markets so it effected everyone. (Routt, 2010) Bibliography Routt, D. (2010, april 02). The Economic Impact of the Black...
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...XECO 212 John McGee Tracey Mariner September 9, 2011 CheckPoint: Historical Example of Labor Supply and Demand In this assignment, I was asked to chose a historic event and describe the event in terms of labor supply and demand. The historic event I chose was the Great Depression. This era spanned for 1929 thru 1939. Not only was the Great Depression happening there was also World War II. The great depression was a time in America where the demand for labor was higher than supply. The Law of Supply was the more the wages were for labor the more people would want to work. The Law of Demand was the higher the pay; employers would hire fewer employees. This was not the case during the great depression, the Law of Supply showed that the lower the wages went, the fewer the employees. During the great depression the main problems were that, employers were not hiring because their business were not doing good and the decline in goods being bought and sold. During this time, goods were not being bought because there was such a high unemployment rate and people just did not have the money to buy the goods that these companies were developed. Towards the end of the war, America was heading for a change and businessmen started to rebuild/build plants. This created jobs for the unemployed and slowly began the process of moving forward. During this time there was a great demand for planes, tanks, and boats, which allow for even more employment opportunities...
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...Example of Labor Supply and Demand Darrell Scott Puehler XECO/212 April-13, 2012 Mathewos Kassa Historical Example of Labor Supply and Demand The Black Death was the largest demographic disaster in European history. Known as the "great pestilence," the Black Death arrived in Italy in late 1347 and made a clockwise movement across the continent where it eventually died out in the Russian hinterlands in 1353 (Routt, 2010) . It had a major impact on the demand and supplies of labor of the European economy especially the agricultural sector of the European job market. Because of the devastating effect of the Black Death, was not felt for a generation the supply for labor was plentiful due to the fact of the peasant population. If one peasant worker fell to his or her death during the onslaught of this pandemic disaster, then another was easily found to replace the lost worker. However, one generation later the effects of the Black Death on the labor market began to take shape. By the 14th century, the agricultural revolution and good climate had provided a high demand for land in England, which meant more workers were needed to farm this land thus, raising the demand for agricultural laborers (Peschke, 2007). However, the effects of the Black Death were finally realized. There was just too much land and not enough workers. The Black Death caused the supply of these workers to decrease and the resulting effect of the decrease in supply and the increase of demand due to the abundance...
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...SUPPLY AND DEMAND OF LABOR XECO/212 04/20/2012 Jason Mackey Looking back into the U.S. history and certain things that happened throughout the economical history of this country we can see some extreme changes in the economic make up of the country. In the 1930’s the country suffered from a devastating economic failure called the great depression. What happened during this time is the stock market took a major hit and basically put the country into an economical tail spin. People all across the country lost millions of dollars which caused the demand for all kinds of products and services to drop significantly. At the same time this caused a extreme overstock of services and goods. What occurred next is many people became unemployed because their trade or product was not considered needed. This unfortunate time in history caused people to lose their jobs at an extreme level. This had a chain reaction on the economy that many did not see coming. When one job was lost, this had a cascading affect on the entire business world. At a point in time people thought they could travel out west to find jobs when this was not the case the catastrophe had an impact on the entire country. When people have no money to buy things and no way of supporting themselves bad things begin to happen. People begin losing their homes and starvation can set in and before you know it the entire country is devastated. During the great depression labor supply and demand played a major role on everything...
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...Running Head: Assignment: Money Train Multimedia Activity Assignment: Money Train Multimedia Activity XECO/212 University of Phoenix Reserve Requirements 1. To increase growth, the Federal Reserve should lower reserve requirements. When reserve requirements are lowered, it means that banks are required to keep fewer funds in their reserves. As such, they will have more funds to loan, this will increase money supply. When supply of money increases, there will be a decrease in interest rates. When interest rate falls, investors and consumers will be more willing and able to borrow funds to invest and consume since it is now cheaper to borrow funds. When consumption and investments increase, it will increase aggregate demand and thus bring about economic growth. Economic growth is important to maintain or improve standard of living. In addition, economic growth helps to close recessionary gaps and thus reduces unemployment rates and increase level of income. On the other hand, when reserve requirements are increased, supply of money will fall. This will result in an increase in interest rates which will contribute to a decline in economic growth. Discount Rates 2. To slow down an economy, the Federal Reserve should increase discount rate. This makes it more expensive to borrow funds. As such, banks will have fewer funds available. When this happens, supply of money will decrease and this will result in an increase in interest rates. With the increase in interest...
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...Checkpoint: Historical Example of Labor Supply and Demand Aaron Rhome XECO/212 11/17/12 Jim Vernon Checkpoint: Historical Example of Labor Supply and Demand The era of American history known as the Great Depression represents the bleakest chapter in the history of the economy United States. A series of events culminated into the largest economic downturn in known history, with no end in sight. Following the stock market crash on September 3, 1929 millions of Americans rushed their banks to withdrawal their funds before their bank collapsed. Their actions caused many more banks to fail and limited the availability of credit to businesses. This lack of credit combined with reduced consumer spending lowered the demand for labor and unemployment skyrocketed as a result. At the outset of the depression domestic and foreign demand for automobiles had turned American auto manufacturing was the biggest industry in the world and was the driving force behind the U.S. economy (McCarthy, 2012). As thousands of banks and other companies closed or slowed production unemployment levels skyrocketed to a height of 25% by 1933 (Croft Communications, 2012). The increased supply of available labor coincided with a decrease in demand for automobiles resulting in a labor equilibrium that required fewer workers and lowered wages. According to McCarty (2012), “During the early 1930s, hundreds of thousands of workers...
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...Supply And Demand Aaron Harris XECO/212 3/25/2012 Kristin Paul Supply And Demand Supply and demand are the two words that economists most often use and there is a Good reason. Supply and demand is the engine that makes market economies Go. This determines the quantity of each good produced and the price point at Which it is sold. If you would like to understand how any event or policy will have an effect on the Economy, you must first think about how it will affect supply and demand. A market is a group of buyers and sellers of a certain type of good or service. The Buyers as a group determine the demand for the product, and the sellers as a Group determines the supply of the product. The good that I have had experience purchasing is a computer I will explain the factors that affect supply and demand with this good. There are many factors that I believe could cause possible changes in supply and demand for a computer. The first possible factor is changes in technology, within the computer industry; technology is fresh and moves faster than in any other industry. This also means that pioneering products are obsolete basically overnight. So, as product life-cycles are always decreasing, the value of rapidly bringing products to market is constantly increasing. In this lively environment, speed is crucial. So far, the computer industry has succeeded by using change to its advantage. This factors into how often I will have to buy a new program for my computer...
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...Principle of Supply and Demand Theresa "Terri" Williams XECO 212 January 11, 2013 Hamsa Wilson Principle of Supply and Demand. In this paper I will decide which principle plays a major role in my decision of buying a house. I will provide examples for each showing the interaction, decision making and the workings of the economy that I have made to decide which and where I buy a home. I will explain how the influence the marginal benefits and marginal cost associated with the decision to purchase a house. The first important principle that I would use is the second principle which states The Cost of Something is what You Give Up to Get It. I believe in this principle that needs a house you would have to save up and make sure you can afford it later in the years to come. This principle for example you would have to decide in years to come what is important the most a car to get around or a house to live in with your family. This principle also would be where you would decide in the house what you need or you do not. The next principle would be six which is Markets Are Usually a Good Way to Organize Economic Activity. I believe that this one would be important also because when you buy a house you would have to decide the market and where you want to live if deciding to get loans you would have to decide how to pay them off over the years. The last thing I will discuss about buying a house would be inflation, marginal benefits and marginal cost that is associated...
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...Supply and Demand Carlee Spencer XECO/212 December 9, 2012 Jonathan Keisler Supply and Demand Cars are a good that almost everyone has. I just purchased my new car, an Audi A4. When it comes to any car manufacturing company they try to gauge what the market will do within the year and make enough vehicles to supply to their customers. Many of the manufacturing companies have started making their new models and sending them out to dealerships to be displayed and many models there for purchase. Then there are some companies that will only make enough models to have a few for purchase and the rest can be custom ordered by each customer to their liking which is something consumers see as a benefit and can raise the demand of certain vehicles. This also allows for the manufacturing company to better meet the demand without having an overabundance of supply. When a car manufacturing plant has a lot of cars left but no demand for them they just lost a ton of money. Cars are not cheap to put together hence the price we pay for them. The demand for cars is relative to price as well. The cars that are more affordable are more in demand and the supply of them will be greater as well to keep up with demand. Examples of these vehicles are Honda, Toyota, Chevy, Ford, and Subaru. Once you get into the higher priced vehicles or luxury class, such as Mercedes, BMW, Audi, and Volvo, the demand decreases, because of the price, and in turn so does the supply. In today’s economy another item...
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