Supply and Demand and Price Elasticity
John Gayden, Linda Petteway
ECO 212 Principles of Economics
November 22, 2010
There are many things adversities that cause the rise and fall of supply and demand. For example, if Crab prices rises, a Red Lobster sales price will increase also on crabs this will cause the demand of crabs to decrease this is price of input. When crab production become abundant again causing more crabs to over flow Red Lobster the market price on crabs will decreases this creates a good technological change. When Red Lobster menu changes by adding a variety of plates that do not include crabs when the crab prices are high they focuses on selling the other entrees available this is known as prices of substitutes in production. Another way change affects supply and demand is by the number of firms or business selling same or similar products in the market. These new business bring more competition and prices may vary depending on the supply in demand. When a business anticipates that the prices of the goods or service will increase from what the price is today that allows the business or firm to increase the current price this also causes change to affect supply and demand (Hubbard & O'Brien, 2010). The price of gas is another Market this is very unstable and has no balance of supply and demand. The changes in prices and quantity affect the equilibrium in positive and negative ways. There can be talks of a hurricane in Cuba and it will cause the price of gas to go up 50 cents. Holidays or warm weather cause the price of gas to sky rocket. There seem to be no one with a hand on who control these prices.
The main form of reading material used to be physical books. The development of the Apple iPad has vastly increasd the ease and amount of free reading material available to consumers. The iPad price ranges between $499 up to $900 (Glenn, 2010). The iPad is touch screen mobile laptop with no...
References: Hubbard, R., & O 'Brien, A. (2010). Economics (3rd ed.). Boston , MA: Perason Hall.
Glenn Chapman, 2010. Kindle and Nook cut prices in battle with iPad, Retrieved November 14, 2010 from http://newsinfo.inquirer.net/breakingnews/infotech/view/20100622-276934/Kindle- and-Nook-cut-prices-in-battle-with-iPad
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