Supply and Demand and Price Research Proposal

Open, View, and/or
Download this Document

Total Length: 865 words ( 3 double-spaced pages)

Total Sources: 3

Page 1 of 3

For example, new competing technology called an eventual fall in demand of video cassettes and an eventual reduction of the supply as a new equilibrium was reached. Now there are only a few VHS players and cassettes remaining on the market, while the amount of TiVo and DVR users has exponentially increased. But this took time as people replaced their systems and converted their libraries from one medium to the new medium.

The demand for some goods is more responsive to changes in prices than other goods. For example, food as a whole might seem like a very inelastic good -- people have to eat. But because there are so many substitute goods for a meal, within the category of food price is often very elastic -- consumers will respond to an increase in the price of restaurant meals by cooking at home.

The degree to which the supply curve can respond to changes in demand will vary with the product as well. For example, every great once and awhile there will be an extremely warm winter. Mittens and scarves will pile up in department stores, as producers cannot adjust their supply to a decrease in demand -- they must plan ahead how much winter clothing they will manufacture for the season.

Stuck Writing Your "Supply and Demand and Price" Research Proposal?

View All Our Example Supply and Demand and Price Research Proposal

Have A Custom Example Essay Written

Although they may slash the prices, there is only so 'low they can go' without taking a catastrophic loss, given the cost of the input materials. During a very cold snap, it is difficult to increase inventories of winter clothing by rapidly increasing production and shipping the goods to stores. However, if there is a very hot day an ice cream store can increase their supply to make more money off of the sharp increase in demand, and on a cool, rainy day, the store can simply leave the product in storage until the weather changes. However, if the entire summer is cool, or if people are not buying the product due to the recession and having ice cream at home, eventually the store must slash prices to sell the ice cream before it goes bad, will buy less in the way of inventory, and the supply will decrease (The market system, 2009, part 2)..

Works.....

Show More ⇣

     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"Supply And Demand And Price" (2009, May 20) Retrieved July 3, 2025, from
https://www.aceyourpaper.com/essays/supply-demand-price-21713

Latest MLA Format (8th edition)

Copy Reference
"Supply And Demand And Price" 20 May 2009. Web.3 July. 2025. <
https://www.aceyourpaper.com/essays/supply-demand-price-21713>

Latest Chicago Format (16th edition)

Copy Reference
"Supply And Demand And Price", 20 May 2009, Accessed.3 July. 2025,
https://www.aceyourpaper.com/essays/supply-demand-price-21713
   

Open, View, and/or
Download this Document
order custom essay example