ECO 212 Week 2 Learning Team Assignment Supply and Demand and Price Elasticity Paper

# ECO 212 Week 2 Learning Team Assignment Supply and Demand and Price Elasticity Paper

This preview shows pages 1–4. Sign up to view the full content.

Supply, Demand and Price Elasticity 1 Supply, Demand, and Price Elasticity

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Supply, Demand and Price Elasticity 2 Supply and demand is the foundation of economic stability. Changes in supply and demand affect a society’s eminence. As supply and demand changes, so does the price and quantities of goods. These changes in price and quantity influence market equilibrium. Factors that help adjust the market equilibrium are substitutions. In turn, the substitutions affect the price and ability of elasticity. There are four market systems that operate within the role of the economy. The economist play’s a diverse role within these markets. Explain what causes changes in supply and demand Supply is the ability and willingness to sell and produce certain quantities of a good at an alternative price and a given time period. Demand is the ability and willingness to buy certain quantities of a certain product at alternative prices at a given period. We supply resources to all different markets that are looking for jobs. Then we offer our labor in exchange for income. After that we demand goods when we are out shopping the markets. Then we offer money in exchange for something from the markets. If there happens to be a product that is greater than the quantity of it demand then there is a surplus. With a surplus customers or consumers will buy down the markets price. If the market decreases the quantity demanded will increase and the quantity supplied will decrease until the quantity demand is equal to the supply. Then the surplus is no longer and market equilibrium will be established.
Supply, Demand and Price Elasticity 3 Determine how changes in price and quantity influence market equilibrium To explain how changes in price and quantity can influence market equilibrium, one should first define equilibrium. Equilibrium, as defined by Steven Tomilison in (Understanding Market Equilibrium, Determining A Competitive Equilibrium, p1,) “is a situation from which there is no tendency to change.” That is a market has reached its equilibrium point when there exist no pressure from either buyers or sellers for a price or quantity change. This indicates that at this price the demand for a product equals the quantity available or, to put it another way, when

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 8

ECO 212 Week 2 Learning Team Assignment Supply and Demand and Price Elasticity Paper

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online