Supply and Demand and Price Elasticity Essays

Supply and Demand and Price Elasticity Essays Supply and Demand and Price Elasticity Essay Supply and Demand and Price Elasticity Essay Supply and Demand and Price Elasticity Team D John Gayden, Linda Petteway ECO 212 Principles of Economics November 22, 2010 Keith Watts There are many things adversities that cause the rise and fall of supply and demand. For example, if Crab prices rises, a Red Lobster sales price will increase also on crabs this will cause the demand of crabs to decrease this is price of input. When crab production become abundant again causing more crabs to over flow Red Lobster the market price on crabs will decreases this creates a good technological change. When Red Lobster menu changes by adding a variety of plates that do not include crabs when the crab prices are high they focuses on selling the other entrees available this is known as prices of substitutes in production. Another way change affects supply and demand is by the number of firms or business selling same or similar products in the market. These new business bring more competition and prices may vary depending on the supply in demand. When a business anticipates that the prices of the goods or service will increase from what the price is today that allows the business or firm to increase the current price this also causes change to affect supply and demand (Hubbard OBrien, 2010). The price of gas is another Market this is very unstable and has no balance of supply and demand. The changes in prices and quantity affect the equilibrium in positive and negative ways. There can be talks of a hurricane in Cuba and it will cause the price of gas to go up 50 cents. Holidays or warm weather cause the price of gas to sky rocket. There seem to be no one with a hand on who control these prices. The main form of reading material used to be physical books. The development of the Apple iPad has vastly increasd the ease and amount of free reading material available to consumers. The iPad price ranges between $499 up to $900 (Glenn, 2010). The iPad is touch screen mobile laptop with no keyboard and high screen resolution. The iPad offer consumers the ability to have an e-reader with color screen and much more. The typical reaction of this vent should have caused the prices of reading material to drop. The decrease in quantity demanded of books should have caused the price of them to drop. The loss of consumers was a negative cost for suppliers. The market reacted to the loss of demand by shifting the form of books. The suppliers shifted the equilibrium back to a more self-beneficial market in several ways. We will base this on one consumer’s pers onal observations. The first way suppliers used was to print hard back book at higher prices and not print the cheaper paperback form until at least nine months later. They also made the price of new online reading material the same prices as a new book. The suppliers also decreased the quantity supplied of hard back books causing an increase in demand. Market equilibrium is a constant balance of what consumers want and what suppliers deliver. References Hubbard, R. , OBrien, A. (2010). Economics (3rd ed. ). Boston , MA: Perason Hall. Glenn Chapman, 2010. Kindle and Nook cut prices in battle with iPad, Retrieved November 14, 2010 from http://newsinfo. inquirer. net/breakingnews/infotech/view/20100622-276934/Kindle- and-Nook-cut-prices-in-battle-with-iPad