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Essay / Research Paper Abstract
This 8 page paper looks at the different influences in supply and demand, including are factors such as the price and availability of substitutes and complimentary products, the impact of the level of disposable income, advertising, tastes, the cost of credit, the impact of profit levels for the suppliers and the issue of opportunity costs. The bibliography cites 4 sources.
Page Count:
8 pages (~225 words per page)
File: TS14_TEinfSupdem.rtf
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Unformatted sample text from the term paper:
result on the market price. The market price for a good is where the supply and demand meet at a point of equilibrium. Where demand exceed supply then the price
will increase until either demand subsides so that that sufficient suppliers are attracted to the market due to the higher prices in order to satisfy demand, or a combination of
these factors. Where the supply exceeds the price the opposite will happen, the price will fall until either sufficient buyers are attracted to the market to increase the demand, or
sufficient supplier reduce or stop supplying the market, or a combination of the two where a new point of equilibrium will be reached. This can be shown with a graph
with supply and demand lines where they meat is the price. Figure 1 Supply and Demand The price moves as the supply and demand shift, which in
reality may occur all the time, with any point of equilibrium lasting for days to seconds, such as in the stock market. To consider the way the prices may
move the different potential influences in the supply and the demand can be considered. We will look first at the demand first. There are many ways fo cionsideitn this,
one is with the use fo a demand equiaion. There are many aspects that can be placed into this, for this paper we will use the following; Qd =
f(Po, Ps, Pc, A Yd, T, C, E, POP) e. Qd is the quantity demanded, which is then a function of the price (P) of the goods themselves (o), the
substitutes goods (s) and the complimentary goods (c), advertisings, disposable income (Yd), tastes (T), cost of credit (C), future expectations (E) and population (P), there is also the need to
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