Supply and Demand

Only available on StudyMode
  • Download(s) : 561
  • Published : June 21, 2011
Open Document
Text Preview
I have recently purchased a new washing machine. My old washer had stopped working. Even though I wanted to make a somewhat quick purchase; I took my time. I had to consider many variables when I was shopping for the best deal. I will explain how many outside influences could potentially impact the supply and demand of this particular product. All factors will be considered. A washing machine is considered a normal good in economics. The fact that it is a normal good implies that when a household’s income increases people the household will purchase more of the item. If the households income were to decrease and their current washer broke they might chose a different option such as washing their laundry at a laundry mat. There are certain goods that a household would actually buy less of if their income were to increase. For example people may choose to buy less hamburger meat and choose to replace that with steak because of their added income. There are many variables that could potentially affect the demand curve of any product. Variables include; the price, complementary goods, substitute goods, the income of the household, taste and preferences of a particular household, as well as expectations for future price. In the case of the demand for washing machines I think the largest influences to shift the demand curve are price, income of the household, complementary goods, and future expectations for price. Substitutes do not play a large role in the demand for washing machines. A substitute for buying a washing machine could be as I mentioned before a laundry mat, or you could choose to wash your clothing by hand. The price of washing machines is a huge factor influencing the demand for washing machines. The price of washing machines will influence buyers whether to update their existing washing machine or buy one for the first time. A complementary good of a washing machine that automatically comes to mind, since washers and dryers are...
tracking img