Factors Affecting Aggregated Demand and Supply

In: Business and Management

Submitted By elieneida
Words 671
Pages 3
Factors Affecting Aggregated Demand and Supply

Factors Affecting Aggregated Demand and Supply
Facebook’s internet.org project When you go into the website in the main page the words “the more we connect the better it gets”, “2/3 of the world is not connected to the internet” and also at the very bottom it has a section to where it is titles “these are their stories” and there are four sets of names and to what and who they are, but it is interesting because as I clicked on the names “ Erika & Esmerelda” at the bottom of their name it states “ 11 year old inventors” it caught my attention and so I clicked on “learn more button” and It then asks as to is I want to know on how they did it, their inventions of course. They begging as to saying that they would love to tell us on how these two girls became inventors but that one would have to head over to Bolivia due to the fact that they are not on the internet. With that I can see how they are trying to get ones attention into supporting their project, by showing them how there is people who not only need internet but also need to be on the internet. "Internet.org by Facebook." Facebook. Facebook.com, n.d. Web "Erika&esmerelda." Internet.org by Facebook. N.p., n.d.
Do you think the internet services that internet.org project offer are actually free? I am indecisive on if the services that face book’s internet.org project are really free. Reason to it is because they can be free to those that need the internet or to those that they are trying to target, and they are just wanting to connect everyone on the internet and be able to provide those without it, but if you think abput it doesn’t it make you think as to how they are going to provide these things without any money? Where would to get it from? In my opinion every project does need money in order for it to be done, especially since this is the…...

Similar Documents

Discuss Wether Price Is the Main Factor Affecting Demand of a Consumer Product

...Discuss whether price is the main factor affecting the demand for Pepsi The question is telling us to discuss the whether price is the main factor which would affect the demand (the quantity of Pepsi consumers are willing to buy each month or so) for the product in this case Pepsi, this basically means to analyse the alternate factors (non price) which would also alter the demand for the product for example: price of substitute, the quality of substitute, the number of substitute, the quality, the customers income, trend of the time and also factors such as the price of the complement (a product bought with my product i.e. an association). Which in this case would be a complementary food item, like a chocolate bar or sandwich, as Pepsi may be part of a meal deal involving these category of items. The factors which will affect the demand can most generally be categorised into two groups ‘price’ and ‘non-price’ factors, and can most simply be categorised into having two affects on demand these being a direct affect (if this goes up or down the demand will move in sync) which are always non-price as price is an inverse factor which means if it rises or falls the demand will move in the opposite direction. In sum an increase in demand is caused by either an increase in a direct factor, examples: quality, income, advertising and price of substitutes, and a decrease in an inverse factor, examples: quality of substitute, price of complements. And a decrease is caused by......

Words: 1591 - Pages: 7

Factors Affecting the Demand of Smartphone Among Young Adult.

...International Journal on Social Science Economics & Art Conceptual Paper: Factors Affecting the Demand of Smartphone among Young Adult. Mei Min, Chow1, Ling Hong, Chen2, Jian Ai, Yeow3, Pei Wah, Wong4 1,2,3 Faculty of Business & Law, Multimedia University (MMU), 75450, Bukit Beruang, Melaka, Malaysia. E-mail: mmchow@mmu.edu.my; lchen.hong@gmail.com; jayeow@mmu.edu.my 4 Centre for Diploma Programmes, Multimedia University (MMU), 75450, Bukit Beruang, Melaka, Malaysia. E-mail: pwwong@mmu.edu.my Abstract— The term ‘Smartphone’ has commonly discussed among young adult especially students from higher learning institutional. Cell phone has becoming a part of their life-tool eventually. Young adult eventually used their phone to communicate with people, alarming themselves from few reminders, direct ways, downloading songs and games, texting messages and more. According to Rice and Katz (2008), the cell phone can be said as a social medium that developing into a multimedia digital platform which has the ability to provides, obtains, and shares personal and social information. However, the market eventually has a higher technology which is called Smartphone. Several industries have hurriedly espoused mobile devices, such as personal digital assistants (PDAs) which have the capabilities of integrating wireless connections and mobile devices that auxiliary pushed the demand effectively in every industry by having a new buzzword, “Smartphone,” illustrates this popular......

Words: 5574 - Pages: 23

Supply and Demand

...Osborne Lopez Supply and Demand Simulation January 17, 2013 ECO/365 William Mason A number of factors, including price increases or decreases, cause changes in supply and demand. An incremental decrease in the rental price led to a huge increase in the demand for houses. Similarly, an increase in the rental price of two roomed apartments caused a decrease in the demand of houses by a significant margin. Suppliers were willing to supply more houses at higher prices and fewer ones at reduced rents (McDowell et al., 2006). A rise in the population of Atlantis led to a greater demand for housing which in turn contributed to the rise in rental prices as demand-outstripped supply. As a consequence, the suppliers were eager to supply more units at improved rental prices. When the population decreased, the demand for housing fell and the available units were leased out at low prices. Naturally, the suppliers were not very keen to supply all their units to the market at depressed prices. Available substitutes affect the demand and supply of a commodity. A number of people in Atlantis owned homes in the suburbs and did not need to rent houses in the town. The demand for houses dropped and this forced the suppliers to cut back on supply or reduce rents in bid to attract more clients. Consumer tastes and preferences affect the supply and demand of goods and services in the market (McDowell et al., 2006). When consumer trends shifted from two roomed apartments to detached......

Words: 869 - Pages: 4

The Evolution of House Price in the Uk and the Factors That Affect the Demand and Supply of Houses

...Contents 1. Introduction 3 2. The evolution of house price in the UK and the factors affecting 3 supply and demand 3. The price and income elasticity of housing demand 9 4. Literature 11 1. Introduction The aim of this study is to explain the changes in the prices of houses by shedding light on factors affecting the demand and supply of houses in the UK. Firstly, we will look at the evolution of house prices in the UK since 2006 and examine relations between house prices and output, employment and mortgage interest rate. Also, supply of houses will be discussed by noting changes in the number of new houses and factors such as land cost, building cost. Then, in the next section we will proceed to examine the factors affecting the sizes of different elasticity of demand 2. The evolution of house price in the UK and the factors affecting supply and demand Over the last four decades, the UK housing market has been subject to boom/bust cycles and Stephens (2011) indicates that UK has one of the most persistently volatile markets in the world. Especially, since 1997 there has been a record growth in UK house prices. The above chart indicates that there are significant fluctuations the in UK housing market. House prices experienced steady growth during both 2006 and 2007 and reached their peak in late 2007. As the end of the 2008, the average house......

Words: 1826 - Pages: 8

Factors Affecting Demand of Smartphone

...Inquire, Inspire and Innovate BRM 2044 RESEARCH METHODS FOR BUSINESS The Factors Affecting the Purchase Intention of the Consumers toward Smartphone. TRIMESTER 2, 2012/2013 Lecturer: Wendy Teoh Ming Yen Lecture section | BM 202 | | Student’s Name | Student’s ID | Student’s Major | Signature | (Group Leader)Member 1: | THEO WAI KIAN | 1102700074 | BANKING AND FINANCE | | Member 2: | MAH JIA YEE | 1102701193 | BANKING AND FINANCE | | Member 3: | CHEN ZI XIANG | 1111112600 | HUMAN RESOURCE | | Member 4: | TAY KHENG GUAN | 1101106830 | HUMAN RESOURCE | | Table of Contents Index Page Cover Page 1 Contents 2-3 Chapters 1: Introduction 4-11 1.1 Introduction 4-6 1.2 Background of the research and research question 6-7 1.3 Research objectives 8 1.4 Significance and justification of the study 8-9 1.5 Research scope 9 1.6 Definition of the key terms 10 1.7 Organizational of Research 11 Chapters 2: Literature Review 12-19 2.1 Introduction 12 2.2 The theory 12-13 2.3 Dependent variable 13-15 2.3.1 Purchase intention of smartphone 14-15 2.4 Independent variables 15-19 2.4.1 Product features 15-16 2.4.2 Price 16-17 2.4.3 Brand name 17-18 2.4.4 Social influences 18-19 2.5 Conclusion 19 Chapters 3: Research Methodology 20-29 3.1 Development of Research framework and hypotheses 20-22 3.1.1 Social influences 21 3.1.2 Product features 21 3.1.3 Brand names 22 3.1.4 Price 22 3.2......

Words: 12112 - Pages: 49

Supply and Demand

...In many ways, supply and demand can make or break a business. If an individual business were to change their practices, goods offered, or even their seating arrangement, their bottom line could suffer dramatically. For example, one may examine the businesses of McDonald’s. What would happen if McDonald’s did away with one of their most popular business factors – the drive-thru. It could be easily assumed that their supply will go down due to the fact that many customers utilize the drive-thru and would no longer be able to do so. Therefore, they will not meet the expectations of as many people. With this change, their business operations would be affected in that the number of customers would decrease, thus decreasing the need for a larger workforce and drastically lowering the company’s income in that particular store. On the other side of the coin, say that the same store chose to increase the hours of operation of the drive-thru or expand the dining room area. This would increase the availability of the business’s offerings. An increase in customer accessibility will cause a rise in revenue, and potentially trigger a need for more staff. Changes like these would increase the business operations on a fiscal and labor scale. Now, one should look at what impact potential changes to the demand factors would have on the business. Say McDonald’s chose to do away with one of their most popular dishes – The Quarter Pounder. Almost everyone is familiar with this......

Words: 425 - Pages: 2

Supply and Demand

...Principles of Microeconomics 202 Seminar 1 Current Event: Chapter 3 (Supply & Demand) September 28, 2013 Global Oil Supply and Demand Online Article By, Kirby Brown, For the Deseret News Published: Monday, Feb. 25 2013 5:44 p.m. MST Global Oil supply and demand is driving gas prices in 2013. He was speaking of how when the price of oil fluctuates, the price of gasoline prices at the pump will also fluctuate. Given the numerous factors affecting global supply and demand for oil, the price of gasoline should be expected to continue to rise (deseretnews.com/2013). The Organization of the Petroleum Exporting Countries currently consists of 12 countries. Saudi Arabia, with oil production of approximately 8.8 million barrels per day, is the leading oil-producing country in OPEC. OPEC was initially formed in September 1960 and is currently headquartered in Vienna, Austria (deseretnews.com/2013). Global supply and demand for oil is significantly correlated with the retail price of gasoline in the U.S. and in other oil-importing countries. Non-OPEC oil production was reported to be just below 53 million barrels per day in 2012. The year 2013’s oil production by these same countries is currently estimated to total approximately 54 million barrels per day (deseretnews.com/2013). Oil production in the U.S. is forecast to increase by about 500,000 barrels per day to total about 10.5 million barrels per day in 2013. Ongoing development of oil production capacity linked to shale......

Words: 646 - Pages: 3

Supply and Demand

...Supply And Demand In the business world, business owners are all concerned with supply and demand. From the large hamburger franchise to the local burger joint down the street, supply and demand effects everyone. Of course, supply and demand are affected by many different factors. In order to adequately show you how some factors affect both supply and demand, let's start off by picking a business to use for an example. I'll use the popular hamburger franchise, McDonald's, in my example. Supply There are many different factors that shift the supply of a business, even a large franchise like McDonald's. They can vary from the amount of suppliers in the area to the changes in resource prices. While it may not seem that the amount of suppliers in the area would affect the supply, it actually does. The amount of hamburger franchises or even the smaller restaurants in the area, will affect where people will get their food. The small chain may offer a better hamburger or a hamburger at a cheaper price. With the economy slowly recovering, people have cut back on spending and limited their budget spent on eating out. This influences their choice of restaurant, and while McDonald's has a hamburger you love, the local hamburger restaurant might offer something similar for less. In the same aspect, McDonald's prices might be higher due to the changes in prices for their resources. As the consumer, it may seem silly for McDonald's to raise their prices when the price of...

Words: 509 - Pages: 3

Factors Affecting Demand of Pineapple in Malaysia

...ECO 740 ECONOMIC ANALYSIS MASTER IN BUSINESS ADMINISTRATION “FACTORS AFFECTING DEMAND OF PINEAPPLE IN MALAYSIA” PREPARED FOR: Prof Madya Dr Rosita Suhaimi PREPARED BY: Azarudin Bin Berudin (2013803912) Cecilia Amid (2013859584) Daphne Gayle (2013278394) INTRODUCTION Global price hikes in food has created a global crisis that affects both developed and developing countries. Initial causes of the price spikes included unseasonable droughts in grain producing nations which can be attributed to climatic change and rising oil prices. The rise of oil prices exacerbated costs of fertilizers and transportation of food. The increased farming use in biofuels, growing consumer demand, global population growth and structural changes in trade and agricultural production has also lead to the price increase of food and made it unaffordable for many people. In Malaysia, the Agrofood Policy (2011-2020) was formulated to ensure food security, enhance global competition, increase farmers’ income, ensure agro-food sector’s sustainable growth and boost food production to meet growing population demand. The period is a critical time as Malaysia plans to achieve an advanced high-income economy (in line with the 10th Malaysia Plan, 2011-2015) with consumers’ need for quality, safety, nutrition, functionality and environmental sustainability. Demand for local fruits is expected to increase at a growth rate of 2.3% annually from 2.7 million metric tonnes in 2010 to 3.3 million metric tonnes by......

Words: 2736 - Pages: 11

The Microeconomic Effects of Change in Demand and Supply Factors: Wal-Mart

...The Microeconomic Effects of Change in Demand and Supply Factors: Wal-Mart Raina Devoid Southern New Hampshire University Introduction The following research study of Wal-Mart Stores Inc. (Wal-Mart) examines the effects of non-price factors as they relate to the graphical representations of demand and supply curves. After describing the industry itself and the services/ products it provides and an understanding of how the organization operates as a market has been established, this study will give insight on the effects of four non-price demand factors have on the demand function. The non-price demand factors include consumer income, seasonal products, availability of substitutes, and population. Once this has been defined, the study will discuss the effects of the following non-price determinants on supply: technological progress, government regulation, seller expectations, and alternative products and related goods. The explanation of these changes will be as it relates to the change in the graphical representation of the supply function. Organizational Profile Wal-Mart Stores, Inc. is a publicly-traded company that offer consumers discounted prices on everyday items. It is the world’s largest retailer and is known not only for its discount stores, but also its super-centers, neighborhood markets, and club stores. “The company operates approximately 10,130 retail units under 69 different banners across 27 countries,” (Wal-Mart Stores, Inc., 2013). Whether a customer...

Words: 2602 - Pages: 11

Factors That Will Be Affecting the Demand and Supply for Products

...Paper 1: Factors That Will Be Affecting the Demand And Supply For Products Presented to: Dr. John A. Machnic, Phd In Partial Fulfillment of the Requirements of: Managerial Economics Summer 1, 2013 Section OB Introduction: Demand is described as the ability and the willingness to buy a specific quantity of a product at a given price (Grant, 2002). The demand curve is downward sloping and varies inversely with price. Price changes cause a movement along the demand curve while changes in the factors that influence demand cause a movement of the curve itself. Supply is described as the ability and willingness to supply a specific quantity of a product at a given price (Grant, 2002). The supply curve is upward sloping and varies directly with price. Price changes cause a movement along the demand curve while changes in the factors that influence supply cause a movement of the curve itself. A dynamic global economic environment with continued innovation leading to new and improved technologies entails ever changing demand and supply situations for a large number of goods and services on offer to consumers presently. This paper examines the changing demand and supply considerations for 10 such products with a synthesis as to whether demand/supply for/of them will increase/decrease in the years to come. Before we proceed, it is important to understand what is meant by demand......

Words: 1977 - Pages: 8

Factors Affecting Demand and Supply

...Discuss the factors causing a shift in the demand and supply of a specific commodity. In economics, Demand refers to the quantity of a goods or services that consumers are willing and able to buy at a given price in a given time period. The law of demand stipulates that there is an inverse relationship between the price of a good and the quantity demanded, that is to say, if the price of, say, good X rises, it will decrease the quantity demanded of good X and the price of the good falls, this will bring an expansion of the quantity demanded. The diagram below clearly explains the above statement: A movement along a demand curve only occurs when there is a change in the price of the good in question. Some textbooks call these movements’ extensions and contractions. In the diagram below (Fig 1.1), when the price of CDs falls (from P1 to P2) there is a rise in demand (from Q1 to Q2), ceteris paribus. The movement along the curve is from point A to point B. When the price rises (from P1 to P3) there is a fall in demand (from Q1 to Q3), ceteris paribus. The movement along the curve is from point A to point C. Note that we must say 'ceteris paribus'. If one of the other determinants of demand changes as well, then the curve would shift. A shift in the demand curve occurs if one of the 'other' (i.e. non-price) determinants of demand change. This means that for a given price level the quantity demanded will change. This is illustrated in the diagram below: Fig 1...

Words: 1503 - Pages: 7

Supply and Demand

...Microeconomics and the Laws of Supply and Demand ECO/365 – Principles of Microeconomics 3/23/2015 Instructor: Microeconomics and the Laws of Supply and Demand The Supply and Demand simulation was to act as GoodLife Management property manager for a fictional town, Atlantis. This company manages about seven apartment complexes in the town of Atlantis. In this simulation the property manager was in charge in adjusting the monthly rental rate of GoodLife’s two-bed rental apartments as well as the quantity of apartments supplied based on the market trend. Many factors, such as personal preferences, income, economy, and rental rates influence the supply and demand for apartments. The ratio of vacant and occupied apartments is affected by each of these factors. A carful evaluation is vital when making decisions about supply, demand, and price, as well as a regular monitoring in order to remain competitive in the rental market. The first simulation had the objective of determining the two-bedroom apartments’ monthly rental rate for on provisional leases. Therefore, the rate for vacancy should be decreased to at least less than 15%, while the revenue should be maximized. When the rental rate of the apartments decreased and the demand increased, the vacancy rate decreased as a result. The simulation showed that as the rental rate is lowered the initial revenue increased, and reaching a maximum point at a specific rental rate. This then made the demand decrease. The solution......

Words: 703 - Pages: 3

Fators Affecting the Demand and Supply

...Factors That Will Be Affecting the Demand And Supply For Products Introduction: Demand is described as the ability and the willingness to buy a specific quantity of a product at a given price (Grant, 2002). The demand curve is downward sloping and varies inversely with price. Price changes cause a movement along the demand curve while changes in the factors that influence demand cause a movement of the curve itself. Supply is described as the ability and willingness to supply a specific quantity of a product at a given price (Grant, 2002). The supply curve is upward sloping and varies directly with price. Price changes cause a movement along the demand curve while changes in the factors that influence supply cause a movement of the curve itself. A dynamic global economic environment with continued innovation leading to new and improved technologies entails ever changing demand and supply situations for a large number of goods and services on offer to consumers presently. This paper examines the changing demand and supply considerations for 10 such products with a synthesis as to whether demand/supply for/of them will increase/decrease in the years to come. Before we proceed, it is important to understand what is meant by demand and supply in economic terms. FACTORS THAT WILL BE AFFECTING the DEMAND FOR CONVENIENCE FOODS IN the NEXT SEVERAL YEARS Demand for convenience foods (like those manufactured by......

Words: 1951 - Pages: 8

Supply and Demand

...Supply And Demand Aaron Harris XECO/212 3/25/2012 Kristin Paul Supply And Demand Supply and demand are the two words that economists most often use and there is a Good reason. Supply and demand is the engine that makes market economies Go. This determines the quantity of each good produced and the price point at Which it is sold. If you would like to understand how any event or policy will have an effect on the Economy, you must first think about how it will affect supply and demand. A market is a group of buyers and sellers of a certain type of good or service. The Buyers as a group determine the demand for the product, and the sellers as a Group determines the supply of the product. The good that I have had experience purchasing is a computer I will explain the factors that affect supply and demand with this good. There are many factors that I believe could cause possible changes in supply and demand for a computer. The first possible factor is changes in technology, within the computer industry; technology is fresh and moves faster than in any other industry. This also means that pioneering products are obsolete basically overnight. So, as product life-cycles are always decreasing, the value of rapidly bringing products to market is constantly increasing. In this lively environment, speed is crucial. So far, the computer industry has succeeded by using change to its advantage. This factors into how often I will have to buy a new program for my computer...

Words: 714 - Pages: 3