assigment1 - Economics and Ethical Issues Assignment 1 Dr....

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Economics and Ethical Issues Assignment 1 Dr. Maggie Sizer The Business Enterprise BUS508 Kakageldi Amanmedov 04.25.2010 ECONOMICS ISSUES 1. Discuss what you think will happen to the supply, demand, and price of the product in the short-term; Mrs. Acres Homemade Pies has become a success. Due to the success of the business, Shelly has had to expand operations. Sales have increased drastically and profits have soared. Shelly has increased the supply of the pies but still is not able to keep up with the demand for the pies. In
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Economics and Ethical Issues the short-term, I think that Shelly will run out because the demand for the pies is so great. The price of the pies is going to increase because of the great demand. If the price of the pies gets too high, the demand for the pies will decrease. When the price of the pies goes up so does the opportunity cost of buying the pies. The supply, demand and the price of the pies in the short term I think will cause Shelly to lose business because she won’t have enough pies and the price will increase due to insufficient product. 2. Discuss what you think will happen to supply, demand, and price of the product in the long-term. Since Shelly has been in business selling homemade pies, she has become a success. Her
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assigment1 - Economics and Ethical Issues Assignment 1 Dr....

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