Related Essays
unlimited needs and wants of its population is an economic theory that takes into consideration the fact that supply and demand is what moves markets; in times of scarcity, demand equilibrium is unbalanced and prices rise until that balance is achieved. This makes it so that some goods are priced beyond the point where ordinary consumers could reasonably expect to obtain them. If this happened for such basic goods as food like grain or milk, scarcity would drive the country into a state of starvation and chaos. This can happen in third world countries where there is no strong infrastructure in place—but in a country like the U.S.,… Continue Reading...
This financial data is stratified into a number of different categories corresponding to the market for doctors in terms of supply and demand, elasticity, production costs, pricing, and normal profit. These factors will help her to decide in which state it is beneficial to practice. The focus of this paper, then, is to identify how these factors relate to this young woman's decision and to advise her of the value that she can derive from it. Therefore, it is necessary to evaluate this financial data both individually and holistically to truly discern its impact on the future of this young woman.
Relevant Economic Principles
There are a number of germane… Continue Reading...
The base price for crude oil is set on the basis of global supply and demand. Local prices reflect a variety of factor -- the crude price, cost of refining, cost of transportation, oil company markups and taxes (EIA, 2016). The price that consumers pay therefore reflects a variety of factors, almost none of which either the consumer nor the gas station owner has control over. This paper will discuss these factors in further detail, in order to clarify the dynamics of the oil market to better prepare to make a decision on buying four gas stations.
GDP Growth Rate
There are two… Continue Reading...
simplest way of describing the nursing shortage is in terms of basic economics: supply and demand. Currently, the demand for nurses far outweighs the supply of nurses in the labor pool. In spite of the fact that many nurses are willing to relocate for work, there are still chronic nursing shortages in some areas because the number of nurses entering the profession simply cannot keep pace with the rising population and the increased demands for healthcare services.
In the United States and other wealthy nations, the population has been aging rapidly. The rapidly aging population has further increased the demand for nurses but… Continue Reading...
at $115, considerably deteriorating as it presently stands at $50. The oil price is comparatively determined by actual supply and demand and relatively by expectation. In particular, demand for oil is closely associated to economic activity whereas supply can be influenced by different aspects such as geo-political issues and also regional weather. Notably, if oil producers have the perception that price is remaining high, they make an investment, subsequent to which a lag increases supply. In the same manner, low prices give rise to a scarcity in investment. Moreover, the decisions by the Organization of the Petroleum Exporting Countries (OPEC) fashion expectations. This is in the sense that… Continue Reading...
supply and demand. This can be seen today: the central banks have added trillions into the marketplace in an effort to stimulate the global economy; there is debate about whether the economy has truly been stimulated—but one thing that cannot be debated is the fact that inflation has occurred: asset prices have risen across the board since 2008, when QE was launched. In fact, this phenomenon happens anytime credit is expanded: the more access to money the public has, the higher prices move. That is how supply and demand works.… Continue Reading...
governments. Nations will either allow their currency to float freely on the market, where the value derives in part from supply and demand, and is backed by the ability of that state to raise revenues. These are considered to be the strongest currencies. Other currencies have values that are fixed by the state – as a medium of exchange those official values may or may not reflect the ability of the state to raise funds, but the value is enforceable by law regardless.
A cryptocurrency is different in that its value is derived solely by its supply and demand. The demand for cryptocurrency is driven by consumer trust in the… Continue Reading...
and services. However, they are also functions of changes in productivity and/or supply and demand of goods and services. Patton (2013) defined deflation as reduction in the general price level of products and services, which in turn increases a currency’s value and encourages people and businesses to hoard their money. People and businesses hoard their money in anticipation of lower prices in the future, which creates a decline in demand for goods and services. If deflation persists for a protracted period of time, it eventually results in an economic depression.
Analysis of the Issue
In his publication, Meltzer (2009) stated that the… Continue Reading...
law of supply and demand, the value of bitcoin skyrocketed in a number of years to the point where it is now worth well over ten thousand dollars. Thus, bitcoin is now viewed almost like an ordinary investment.
Unlike regular currencies like the Dollar, Yen, or Pound, bitcoin is not tied to a nation or to any bank. It is unregulated, and bitcoin transactions are totally free as well as private. Bitcoin can be used as virtual cash, to buy things online, or it can be traded like a stock on what… Continue Reading...
pricing models. As Narula (2018) points out, Uber, Lyft, and other ride sharing applications use artificial intelligence to base pricing on supply and demand. Many other companies use artificial intelligence to gauge consumer interest to generate real-time supply and demand pricing.
3.… Continue Reading...
stocks is not a true reflection of investor supply and demand. This inherent unfairness built into the process of the stock market is why maverick developers like Brad Katsuyama has developed the IEX (Tepper 1). Abraham points out other reasons why the stock market methodologies remain unfair, “rigged,” in the sense that Wall Street insiders have access to information that ordinary investors do not. For example, money market managers and other insiders have access to “huge amounts of capital” that create fluctuations in price in what could be considered an unfair advantage—similar to the ways Wal-Mart undercuts small… Continue Reading...
be created without the intermediary of a central bank. The value of this currency would be determined by the forces of supply and demand, based strictly on its users, without the influence of interest rates and other monetary policy tools that are used by central banks to influence the value of their currencies. The way to resolve the issue of trust that naturally arises from a lack of a central bank, or any underlying asset, is the concept of the distributed ledger.
The value of Bitcoin could not be established on a peer-to-peer basis. The counterparties, even if known to each other, would have no legal basis for establishing that value,… Continue Reading...
in the labour market. They distort the market since resources are often not allocated at market clearing prices as generally dictated by supply and demand principles.
Another negative impact of labour market institutions is that they make it harder for outsiders to enter the labour market (Jha and Golder, 2008). In other words, labour market regulations are mainly geared towards protecting the interests of those who are already employed, undesirably making it more difficult for the unemployed to get work. For instance, an increase in minimum wage and labour taxes due to government intervention may cause firms to reduce hiring as more hiring would increase operating costs. This would harm the labour… Continue Reading...
If healthcare were universal, it would also drive down costs via the law of supply and demand as the result would potentially be more competition for preventative services like screenings (“Should All Americans Have the Right (Be Entitled) to Health Care?”). Therefore, universal healthcare is both an ethical and a pragmatic objective.
Universal healthcare is also a politically expedient policy reform. Although Obamacare is not without its vocal and vehement opponents, Americans have reaped tremendous benefits from the Affordable Care Act (ACA), as individuals and collectively as a society in terms of reduced rates of personal bankruptcy cases due to personal health expenditures (World… Continue Reading...
for sale. In the ideal capitalist economy, inefficiencies are eliminated through the inherent operation of supply and demand forces, in which case participants (buyers and sellers) are free to participate in the various activities of an economic nature, guided by their respective self-interests. It was Milton Friedman who once quipped: “a society that puts equality before freedom will get neither…. a society that puts freedom before equality will get a high degree of both.” Capitalism, in essence, breeds economic freedom. Marx was also appreciative of the relevance of capitalism in the realm of innovation (particularly in technology) and continued production. It is, however, important to… Continue Reading...
