Supply and Demand

Supply and Demand - Running Head: ECONOMICS 1 Economics...

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Running Head: ECONOMICS 1 Economics Name: Course: College: Tutor: Date:
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ECONOMICS 2 Economics is a field of study which seeks to establish reasons behind the imbalance portrayed by the consumers and markets even when all other factors are held constant. It seeks to explain how consumers try to utilize the scarce resources to meet their unlimited wants. In its pursuit therefore, the main variables of its major concern include demand and supply. If to mention, demand refers to the willingness accompanied by the ability to buy while supply refers to the quantity that the market is capable to provide to its willing and capable customers. A movement along a demand curve occurs when there is a change in prices as a new point of balance between demand and supply is established. An analysis of the article on effects of weather variability on the economy in the United States is a relevant article to the case being analyzed in terms of shifts in demand and supply curves. In this article, the variable for demand is skiing which in this case is considered the quantitative commodity against price and the constants here are the weather conditions determining the number of skiing days as tastes and preferences and income are held constant. In this case therefore, if skiing obtains favor in comparison to other leisure activities, its demand increases and as a result the demand curve for skiing shifts upwards and the effect of this would be increase in price of skiing hence the economic gain to the country at large. However, a function of consumer demand which could be held constant in this case is accuracy in weather forecasting. Improvements in the level of snow shifts the demand curve upwards since this would
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Supply and Demand - Running Head: ECONOMICS 1 Economics...

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