Abstract This paper explains the economics of supply and demand, as well as examines those factors that can cause a shift in supply and demand. Supply is the amount of goods producers are willing and able to sell at a given price. Demand is the amount of a good that consumers are willing and able to buy at a given price. Factors influencing supply and demand include the price of the good and the income of the consumer.
From the Paper "Supply and demand are at the heart of how free market economies work. Under normal conditions, the price of any product is determined by two factors, the demands for the product and the available supply. The selling price serves as a mechanism to inform consumers and the producers of the relative scarcity of the product. This will encourage the merchant to adjust how much they sell it for and the level of demand by the consumers. When the market for an item is cleared of excess supply or demand equilibrium is achieved. Therefore when demand exceeds supply the prices will rise. This will cause increased profits and will motivate sellers to increase their supply. Buyers will continue to drawn into the market until demand is fully satisfied. "
Abstract The paper looks at an article entitled "Going Crazy for Ethanol" by S. Pearlstein and explores economic issues associated with the supply and demand of a gasoline substitute, ethanol. The paper provides a synopsis of the article in relation to economic theory and explains why changes have occurred in the supply, demand and price of ethanol. The paper examines the invisible hand theory that is proposed to facilitate the equilibrium of price and demand. The paper concludes that understanding how economic conditions affect the marketplace provides managers with vital tools necessary for making effective business decisions.
Outline:
Abstract
Economic Issue
Economic Influences
Supply and Demand The Invisible Hand Theory
Conclusion
From the Paper "Pearlstein, the author of the article, reports that the price for ethanol has reached an all time high of $2.90 per gallon which is twice as high as a year ago. With the manufacturing cost around $1.25 per gallon, the operating margin exceeds 50%. Ethanol is a colorless, volatile alcohol derived from the fermentation of grains and sugars or by the hydration of ethylene. Ethanol can serve as an environmentally friendly substitute for gasoline. Many oil companies are exploring options for production of ethanol to mix it with gasoline to reduce costs. Data indicate that adding ethanol to gasoline would reduce current prices at the pump by 30 cents per gallon (Donaldson, 2006 12)."
Abstract This paper discusses supply and demand in the United States. Specifically, this paper addresses six questions that are based on aggregate supply, aggregate demand, equilibrium of supply and demand, real gross domestic product (GDP), unemployment, and full employment concepts. This paper also includes a graph of a AD/AS diagram, which is demonstrative of United States economic indicators in the 4th quarter of 2004.
From the Paper "This paper discusses and demonstrates supply and demand curves that represent U.S. economy in 2004. All data and information is taken from statistics provided in class as well as lecture notes. Aggregate demand is the total demand for goods and services in an economy, whereas aggregate supply is the total supply of goods and services in an economy. By defining the aggregate supply curve in terms of the price level and output or income, we can analyze the effects of other variables, such as the interest rate, on aggregate supply. An AD/AS Model represents aggregate supply and aggregate demand, an approach used to evaluate the effects of economic policy decisions."
Abstract This paper examines the concept of supply and demand by giving clear definitions and examples. Basic economic terminology is presented and is further illustrated with concrete examples. The paper uses the demand for physicians in the US to describe supply and demand, with practical ideas of how to increase supply.
From the Paper "The rate of supply and demand may vary depending on the trend in the environment. One instance is when the people in one community are so keen in holding or keeping some supplies for their own future personal use. While the people are keeping their stocks on hold, there will surely be dramatic changes in both the supply and demand, as well on the price of the commodities (Lee, 1992)."
Abstract The paper reviews the definition of "economics", the concepts of supply and demand, and the functioning of supply and demand in the air passenger industry in 2003. It looks at the effect of 9/ll on the industry.
From the Paper "If one searched diligently one could find dozens of definitions of the word economics or of the concept of economics The most widely accepted and used definition of economics as an ..."
Abstract The degree of price elasticity of demand for Hoffmann-La Roche's anti-fat drug Xenical is examined. The price elasticity was found to be low due to a high presumed demand. Competition and its effect of their pricing strategy is also examined.
From the Paper "Xenical is an example of a recently developed class of weight-loss medicine that is used to treat obesity. Unlike appetite suppressants it helps reduce body weight by diminishing the amount of fat absorbed in the stomach..."
Abstract This paper discusses the supply and demand simulation for an Economics for Business course. The simulation utilizes the example of the apartment industry in the fictional city of Atlantis. Chiefly, the supply, demand, and equilibrium within the 2 bedroom housing market are examined in relation to the market. The simulation is further complicated by the introduction of a price ceiling to demonstrate how market forces can be artificially manipulated.
From the Paper "The simulation uses the example of a fictional city, Atlantis, to demonstrate the impact of market forces in the 2 bedroom housing market. In the housing market there are many forces that affect supply and demand; some natural, some artificial. The supply and demand of 2 bedroom units in Atlantis is affected by both natural and artificial forces. The natural forces affecting supply and demand in the simulation were the natural influx of people into the city which, those people needing affordable housing caused a greater demand of 2 bedroom units and a temporary shortage until supply caught up with demand. Another natural force affecting supply and demand is housing preference. In Atlantis the example was given that the local population, regardless of price of 2 bedroom units, began to prefer single-unit, free-standing houses."
Abstract This paper discusses the petroleum industry and specifically that of fuel and gasoline products in relation to the economic theory of supply and demand. The paper examines supply and demand as separate components and how consumer conceptions of wants, needs, and desires can be, and often are, manipulated to keep the petroleum industry from being fully governed by normal market forces.
From the Paper "Gas, Economics, and the Power of Demand The Nature of Demand for Fuel Overview The character of the concept of supply and demand in economic terms is confined by the wants, needs, and desires of the individuals in a given society. This character of supply and demand is further restrained by scarcity in that even if supply is strong the relative scarcity of an item has an intrinsic effect on its value. Of all commodities in the world today fuel, alone, seems to operate within its own unique parameters beyond the standard confines of supply and demand. When Adam Smith averred that man was a trader at heart he implied that man seemed to define the value of things: It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own interest."
Abstract This paper reviews the article "China's Rising Demand for Oil and Pipelines Has Worldwide Implications," in which Gordon Feller discusses the unexpected negative impact that the ascendancy of China's economy into a major global economy has had on international markets. The paper goes on to discuss how for years companies all over the globe and especially in the West, have viewed China as an emerging market with vast potential for increasing sales for many years to come. Yet, most analysts seemed to overlook the fact that China's economy was expanding for a reason and that its emerging modern infrastructure and middle-class population with greater income levels would have the same energy demands as any other developed nation.
Abstract In the paper, supply and demand are examined as separate components and how consumer conceptions of wants, needs and desires can be and often are, manipulated to keep the petroleum industry from being fully governed by normal market forces. The paper explains that nevertheless, the petroleum industry is often used to illustrate the characteristics of supply and demand.
From the Paper "One of the most important economic theories in relation to the oil industry, oil as a commodity and oil use is the theory of supply and demand. Simply put, as world markets are pressed to supply higher utilization rates in existing markets and by the addition of newer consumption markets such as China to the overall petroleum market, the price of oil inevitably increases. The petroleum industry is not like other product industries where if a product is selling well then new factories are built to supply the additional demand. In the petroleum industry, it takes years to source and develop oil supplies and the central commodity is a finite product as it is. The world's supply of oil only gets smaller with the passage of time."
This paper is designed to show the demand function of gasoline in the United States and how it affects consumers' buying decisions and automobile manufacturers.
Abstract This paper first address the inelasticity of the price of gasoline and then describes the reasons for it. The paper discusses American consumers' high demand for gasoline being unaffected by changing gas prices due to the lack of available substitutes for gasoline. This does however change the consumers' demand for automobiles. This paper includes charts and graphs to illustrate the data propounded in the paper.
From the Paper "Gasoline's elasticity has and always will remain under 1.0. This just shows that no matter what the price of gas may be, consumers will still purchase gas. In 2007, gas prices were at a record high of almost $5/gallon in Los Angeles and yet, traffic was still awful. Why are people still driving cars and demanding gas when prices are so high? Being inelastic, there is no substitute for gas. What the increasing prices in gas do affect is the demand for cars. Consumers will find alternative ways for transportation such as carpooling, public transportation, walking, bicycling, etc. Even for those who do drive will get deterred from buying SUV's or high gas consuming cars. So with the lower demand for cars, car manufactures have had to change their production strategies. They have reacted by making cars that are gas efficient and more attractive for consumers to drive even with high gas prices."
Tags: economics, supply and demand, hybrids suv's consumer automobiles
Abstract This paper considers the notions of supply and demand. The writer discusses firstly what factors determine the market price of a product and then applies this to the automobile industry. The writer notes the economic situation facing that industry, sales trends and trends in market share to show what determines the price and the volume of sales. Further, the writer looks at how the industry might alter to increase sales, with recommendations for greater innovation for American automakers.
From the Paper "The price charged for products is influenced by a number of factors, beginning with the actual cost of production and then including issues of supply and demand, the economic environment, regulatory issues, and so on. These various forces apply whether the product is a small item or something more substantial, like an automobile. The cost of automobiles is determined by factors both tangible and intangible. Competitive factors also play a role, with the threat from foreign automakers being a major issue in the automobile industry over the past several decades. A consideration of the factors affecting market price lead to a consideration of the state of the automobile industry and its profit picture over the last several years. As noted, the first factor involved in setting a price is the cost of the materials that go into the product and the cost of the labor involved in putting those materials together."
This paper is a complete research project including an extensive literature review that analyzes demand-driven supply networks (DDSN) in an increasingly globalized marketplace.
Abstract This paper explains that demand-driven supply network (DDSN) is an IT strategy that uses a system of technologies and processes to sense demand and react to it in real time, across a network of linked customers, suppliers and employees. The author uses both a case analysis methodology and quantitative surveys. The paper states that the hypothesis of the study is that, because physical supply chains in a global economy operate at the speed of ocean-going ships, U.S. manufacturers should re-engineer their supply networks to remove bottlenecks from the system and match the speed of innovation that operates in a flat world by adopting appropriate demand-drive supply networking techniques. The paper includes many charts, figures and tables and the survey questionnaires.
Table of Contents:
Introduction
Statement of the Problem
Hypothesis
Rationale
Overview of the Study
Literature Review
Background and Overview
The Flat-Round Dichotomy
Supply Chain Tactics for a Round World
Different Approaches Used to Deliver Round-World Returns
Level One: Business Process Improvement
Level Two: Business Process Redesign
Demand-Driven Supply Networks
Four-Stage Maturity Model Helps to Plot Long-Term Track
DDSN Implementation
Sensing and Consolidating Demand DDSN Methods
Alignment is Key
Existing Supply Chain Initiatives and Techniques that Contribute/Mirror Demand-Driven Supply Network Approaches
Efficient Consumer Response (ECR)
Time-Based Competition (TBC)
Product Development
Strategic Importance
Product Life-Cycle Times are Getting Shorter
Product Development Considerations
Cross-Functional Teams
Strategies for Cross-Functional Team Management
Concurrent Engineering
Japanese Paradox
Supply Network Strategy
Just in Time (JIT), Just in Time II (JIT II) and Vendor Managed Inventory (VMI)
Case Vignette - Pure Vendor Managed Inventory in Action.
Agility in the Supply System, Agile Manufacturing, Strategically Flexible Production or Proximity Manufacturing
Case Vignette - Agile Manufacturing
Virtual Operations Strategy
Strategic Outsourcing
Case Vignette - Strategic Outsourcing
World-Class Manufacturing (WCM)
Lean Production and Lean Thinking
Strategic Postponement
Case Vignette - Strategic Postponement.
Logistics Strategy
Strategic Purchasing or Sourcing, Strategic Procurement, Network Sourcing, Materials Management
Case Vignette - Strategic Purchasing and Sourcing
LL Bean Replenishment Schedule
Collaborative Planning, Forecasting and Replenishment (CPFR)
Case Vignette - CPFR at Levi Strauss
Methodology
Data Analysis
Part I: Case Studies
Case Example No. 1: Rexam
Supply Chain Strategies
Case Example No 2. Dell Computer Corp
Dell Geographic Business Segments
Action Strategy
Supply Chain Control
Strategy Applications
Case Study No. 3: Wrangler Jeans
Action Strategy
Selecting Distributors
Most Common Selection Criteria for Developing a Strategic Relationship
Evaluating Distributors
Case Example. Owens & Minor Inc.
Action Strategy
Innovations in Supply-Chain Strategies
Case Examples. United Technologies Corp.
McAfee's Strategy
Results
Action Steps
Defining a Global Perspective
Product Design
Online Survey Results
Survey No. 1. Survey of Distributors
Section One: Distributor Overview
Number of Employees
Annual sales revenues (MM$)
Supply Chain Management Techniques Used in Past
Supply Chain Management Techniques Now Using
Most Valuable Initiative in Streamlining Supply Chain
Key to Likert-Scaled Questions
Familiar with Demand-Driven Supply Network Techniques
Company Currently Uses Demand-Driven Supply Network Techniques
Section Three: Open-Ended Comments.
Survey No. 2. Survey of Manufacturers
Section One: Manufacturer Overview
Number of Employees
Annual sales revenues (MM$)
Past Initiative
Current Initiative
Most Valuable Initiative
Familiarity with Demand-Driven Supply Network Techniques
Company Currently Uses Demand-Driven Supply Network Techniques
Section Three: Open-Ended Comments.
Conclusion
Results
Discussion
Recommendations
Explore Technologies That Deliver Demand
From the Paper "Therefore, one of the most important elements in CPFR is the forging of proactive links between partners or allies at different stages of the supply pipeline. These need to be both strategic and tactical and require proper management as one of the resources of the organization. An excellent example of this in action is to be found in the approach that Levi Strauss and Company take with its main suppliers and customers. According to Lowson, since the mid-1980s, the firm has constantly been trying to establish closer working links in the supply in a coordinated pipeline with the aid of its 'Levilink'..."
This paper is a general analysis of basic economic terms, along with an applied analysis of supply and demand through the healthcare industry and economic articles.
Abstract This paper discusses some general economics terms such as microeconomics, macroeconomics, and supply and demand, among others. Additionally, the concept of supply and demand as it pertains to healthcare and the healthcare industry is discussed. Finally, three separate articles that relate to the concept of supply and demand are summarized.
Outline:
Economics Research
Economics
Supply and Demand Macroeconomics
Microeconomics
Elasticity
Inelasticity
Gross Domestic Product (GDP)
Supply and Demand in Healthcare
Supply and Demand Articles
From the Paper "Another article entitled, The Most Dangerous Deficit: Why the Supply and Demand for Global Public Goods Could Kill You, author Moises Naim finds that the rate of natural catastrophes occurring around the globe has increased and the resulting cost to the world's economies is substantial (2006). The argument, according to this author, is that the supply of resources normally taken for granted that are part of the global public goods such as the seas and global fishing or timber harvesting around the globe, is decreasing so rapidly that the resulting decrease in supply of these global public goods is resulting in astronomical price gains that make these resources unaffordable for many."
