The Effect of Market Forces on Supply and Demand
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This paper examines the market forces that influence the supply and demand of goods in an open market economy. It discusses the factors that will determine both the supply and the demand, specifically the monetary cost of the resource and its availability, as well as government policy. Finally, the paper shows how a deficiency or breakdown in the operation of one factor can influence the others and in turn influence the entire economy.
From the Paper:"Under a communist economic system, all resources both human and non-human are owned by the state, and the government takes on a central planning role by directing both production and consumption in a socially desirable manner. The central planners direct the economy toward what they believe will be in the best interest for the country (Woodbury, n.d.)."
"Mixed economic systems combine principles from both market and command economies to serve the best interests of society as well as private enterprise. The government still regulates cost and production output of goods and services but consumers maintain the free will to decide what they want to buy and who they want to buy it from. The economy of the United States is generally considered to be a capitalist economic system even though it displays some properties of a mixed economy as well (Woodbury, n.d.)."
Sample of Sources Used:
- Bucholz, T. (2007). Price Elasticity of Demand. Retrieved February 21, 2010, from http://www.quickmba.com/econ/micro/elas/ped.shtml
- How Supply and Demand Determine Commodities Market Prices (n.d.). Retrieved February 21, 2010, from http://tfc-charts.w2d.com/learning/
- Mankiw, N. (2007). Principles of Economics (4th ed.). Mason, OH: Cengage Learning, Inc.
- Tobacco Insects (n.d.). Retrieved February 21, 2010, from http://wiki.bugwood.org/Archive:SEIPM/Tobacco_Insects
- Woodbury, D. (n.d.). Economic Systems. Retrieved February 21, 2010, from http://www.answers.com/topic/economic-system-1
Cite this Cause and Effect Essay:
The Effect of Market Forces on Supply and Demand (2010, April 08) Retrieved November 25, 2020, from https://www.academon.com/cause-and-effect-essay/the-effect-of-market-forces-on-supply-and-demand-119186/
"The Effect of Market Forces on Supply and Demand" 08 April 2010. Web. 25 November. 2020. <https://www.academon.com/cause-and-effect-essay/the-effect-of-market-forces-on-supply-and-demand-119186/>