Demand and Supply in Microeconomics

Demand and Supply in Microeconomics Introduction Economics is a study of how to use limited resource to satisfy unlimited people wants. Demand and supply is the two main concept of the modern economic. Demand is what people want and supply is how many goods available for people want. In free market the price of good is determined by the numbers of consumers and how many products available for them. As the result of that, when consumers understand the law of demand and supply they will have ability to decide when they can buy a product with low price and the suppliers can set the right price of this product and decide how many product they will make. In this case study we will evaluate the theory of demand and supply. We also give an example of demand and supply in food market in Hanoi in storm season. Theory Demand and supply might be one of the basic concepts of economics. It is the core of market economy. Demand is the price or quantity of a product or service desired by consumers. The demand relationship refers to the relationship between the price and quantity demanded, which are the price and quantity people willing to pay for. Supply is the amount of products a market produces. The supply relationship represents the relation between the price and quantity supplied, which are the price and quantity suppliers willing to produce. Therefore, price is the main concern for demand and supply to consider increased or deducted, and so demand and supply vary according to the price. According to the law of demand and supply, the higher of a products price the more suppliers will produce and the less people will buy. Because of that, the market price is changes. ( Investopedia news and articles, copyright 2010 ) In such a case, the quantity supplied is greater than the quantity demanded and there is a surplus of the good on the market. From the graph we see that if the unit price is $3 (assuming relative pricing in dollars), the quantities supplied and demanded would be: Quantity Supplied = 42 units Quantity Demanded = 26 units Therefore there would be a surplus of 42 26 = 16 units. The sellers then would lower their price in order to sell the surplus. Suppose the sellers lowered their prices below the equilibrium point. In this case, the quantity demanded would increase beyond what was supplied, and there would be a shortage. If the price is held at $2, the quantity supplied then would be: Quantity Supplied = 28 units Quantity Demanded = 38 units Therefore, there would be a shortage of 38 28 = 10 units. The sellers then would increase their prices to make more profit. The equilibrium point must be the point at which quantity supplied and quantity demanded are in balance, which is where the supply and demand curves cross. From the graph above, one sees that this is at a price of approximately $2.40 and a quantity of 34 units. (NetMBA.com) In general, if the price of a product is at low level, more people want to buy it and the demand will increase. As the result, there will be a shortage. The supplier now will be willing to produce more because people still want to use that product. So the supply increases. It will keep increasing to a point where customers demand and the quantity of that product is equal. Thus, there is a tendency toward an equilibrium point where quantity demanded equals quantity supplied. On the other hand, if the price of a product is at high level, less and less people want to buy it and so the demand decreases. In the end, there will be a surplus. The supplier now will drop down the price in order to attract more customers. This price keeps going down until they sell all out of the surplus. So, the price is moving backward to an equilibrium point where price demanded equals price supplied. So, how a firm know when to produce more or less? As in THE TIMES 100 article states that An important aspect of marketing is knowing what the demand is for your products. All companies engage in marketing activities to find out what the demand for their different products will be. For example, Coca-Cola will want to investigate market trends in the carbonated drinks sector, while a bank will want to find out about the demand for financial services. Armed with this information they are able to make appropriate pricing decisions based on what other suppliers are doing, as well as on the demand from consumers in the market. Some main factors causing the change in demand: Economic factors: When a country economy is good and people have more money in their pockets. They likely want to consume more and thus the demand will increase Social factors: As the social trend changes, people might have less time for taking care of their houses. Therefore, they will need to buy more washing machines and hire employees to do all the cleaning and cooking services. So, there will be more opportunity for firms making washing machine and higher demand for cleaning service. The quantity and the price of competitive goods: the higher the price of a competitive good, the higher will be the demand for this good as customers change from competitive goods. An example for this is that, if the price of i-phone mobile phone goes up, the demand of other smart phones will increase. Some main factors causing the change in supply: Wants: it is simply the demand for a particular product. As the demand rises, the supplies will rise also. The number of suppliers: If new companies join the market, usually the supply increases Natural and unpredictable events: If earthquakes, floods and fire occur, the output likely to drop. Wars, which affect the supply of imported raw materials, the breakdown of machinery, may happen anytime. (John Sloman (1998), and The Times 100, Copyright  © the Times Newspapers) Demand and Supply in Macroeconomics and Microeconomics: Macroeconomics is the study of the whole economic activities which include inflation, recession and unemploymentà ¢Ã¢â€š ¬Ã‚ ¦ Therefore, it concerns with the total demand and total supply. If the total demand is high compared to the total supply, inflation and balance of trade deficits will occur Inflation: is the increase of the price level in the whole economy. If there is a rise in demand, suppliers likely react by setting up high prices. After all, if the demand is still high, they can sell as good as before and make a lot of profits. Inflation will happen when all suppliers just keep their prices at high level. The balance of trade deficits happens when import is greater than export. When the aggregate demand rises, people will have a tendency to buy more foreign goods, more imported cars, wines, electronic equipments will be consumed. If the inflation is also high, the domestic goods are even harder to compare with foreign goods. As the result, our goods cannot be consumed not only by our country but also foreign countries. If the total demand is low compared to the total supply, unemployment and recession will occur Recession: is the economic situation when business activities are declined. As the result, fewer and fewer people are willing to spend money. Thus, firms will have a lot of surplus goods. They likely to buy less from the manufacturers, which will decrease the production in return. Unemployment will happen if manufacturers do not need to produce anymore. Microeconomics is the study about the individual parts of economy, individual firms. It studies about the demand and supply of specific products and services such as cars, clothes, food, electricians. We cannot make as many goods as want because the lack of resources. There are some choices must be made in our society: What should be produced? We dont have enough resources to produce as many goods as we want. Therefore, we have to decide how many cars, how many buildings, how many hospitalsà ¢Ã¢â€š ¬Ã‚ ¦ should be produced? How should things be produced? If there is more than one way to produce thing, we have to decide which is the best. Who will use our products? This is the problem of income. We have to decide what the wage of particular job such as: doctor, engineer, farmerà ¢Ã¢â€š ¬Ã‚ ¦ Because if they have more money, they likely to consume more (John Sloman, 1998) Case study In October of 2008, Ha Noi was flooded by heavy rains. Because the drains did not work effectively as it was supposed to be. People in Ha Noi had a terrible experience because of the scarcity of the food. Learning from that experience, people in Ha Noi today usually store food when a storm is announced coming. As the matter of fact, in the evening of July 17th in 2010, the news forecasted that a storm might be coming. However, in the next day, the weather turned normally again. Because of the worry about the scarcity of food, people in Ha Noi already rushed to the super market and bought as many foods as they can. The change of demand and supply made a lot of supermarket out of stock, also the price of the food was doubled the supposed price. At some supermarket, people had to struggle, pushed each other just to fill up their fridge. As a result, they had to eat frozen food for months while low price fresh food is selling everywhere. At this point, the market had to suffer the decrease of food demand because people already had food in their fridge. In this case, when a demand surprisingly increase the quantity supply cannot afford to satisfy all the needs instead of that is the increasing of the price. When the demand drops down, the quantity supply stays the same but the price has to fall to attract more customers. Conclusion Nowadays, the real world economy is too complex that even in some cases the law of demand and supply cannot be applied. The market today is changing ceaselessly; many individual speculations are getting even more and more uncertainly. Therefore, people shouldnt rush in deciding to buy anything. In my opinion, stock and real estate markets are really risky for those who only follow the market tendency meaning to say the majority of people and dont have enough knowledge of how the economy works. Furthermore, the government should be flexible with the policy to keep the market price at a suitable level so that both customers and suppliers can adapt with, and also avoid inflation and unemployment.

Promote equality and diversity in work with children and young people Essay

These were put into place to ensure that all organisations and agencies involved with children between birth and 19 years should work together ensure that children have the support needed to be healthy, stay safe, enjoy and achieve, make a positive contribution and ahieve economic well-being. The key aspect of the Act was to overhaul child protection and chilren’s services in the UK. Every Child Matters has been futher developed through the publication of the Children’s Plan 2007 which sets out to improve educational outcomes for all children. Race Relations Act 1976 and 2000 This places a statutory duty on schools to promote race equality. It makes it against the law for a person to be discriminated against, whether directly or indirectly. Schools are expected to improve the educational achievements of all children and to promote equal opportunities and good relations between different racial groups. Schools are also required to have a race equality policy which is linked to an action plan. Disability Discrimintaion Act 1995 and 2005 This made it illegal for services (shops and employers) to discriminate against disabled people. According to this Act, a person has a disability if ‘he /or she/ has a physical or mental impairment which has a substantial and long-term adverse effect on his /or her/ ability to carry out normal day-to-day activities’. Now it is a statutory requirement to encourage the inclusion of children with disabilities into mainstream schools. The Disability and Discrimination Act 2005 builds on the 1995 Act by requiring all schools to produce a Disability Equality Scheme. This must set out ways that schools promote equality of opportunity and promote positive attitudes towards pupils, staff and others who are disabled. Also, there must be an Accessibility Plan in place which identifies how th school will increase access to the curriculum improve the physical environment and provide information in a range of ways to meet the needs of individuals with diability. SEN Code of Practice 2001 The Special Educational Needs and Disability Act 2001 strengthened the rights of parents and SEN children to mainstream education. It made significant changes to the educational opportunities that are available to children with disabilities and special educational needs. Human Rights Act 1998 The United Nations first set a standard on human rights in 1948 with the Universal Declaration of Human Rights. In 1998 the Human Rights Act gave a further legal status to this. The basic human rights are: the right to life freedom from torture and degrading treatment freedom from slavery and forced labour the right to liberty the right to fair trial the right not to be punished for something that wasn’t a crime when you did it the right to respect for private and family life freedom of thought, conscience and religion, and freedom to express your beliefs freedom of expression freedom of assembly and association the right to marry and to start a family the right not to be discriminated against in respect t of these rights and freedoms the right to peaceful enjoyment of your property the right to an education the right to participate in free elections the right not to be subjected to the death penalty. UN Convention on the Rights of the Child 1989 The UK signed this legally binding agreement in 1990. It leads on from the Human Rights Act and sets out the rights of all children to be treated equally and fairly and without discrimination. 1.2 The imprtance of promotiong the rights to participation and equality of access All pupils should be able to fully access all areas of the curriculum. The advent of the Every Child Matters framework and the focus on personalised learning in all sectors of education has also made this high on the agenda. The reasons for this are: Human rights: – all children have a right to learn and play together – children should not be discriminated against for any reason – inclusion is concerned with improving schools for staff as well as pupils Equal opportunities in education: – children and young people do better in inclusive settings, both academically and socially – children and young people should not need to be separated to achieve adequate educational provision – inclusive education is a more efficient use of educational resources Social opportunities: – inclusion in education is one aspect of inclusion in society – children need to be involved and integrated with all of their peers. We always have to be aware of the needs of different pupils, whatever these may be. These may become more apparent as we get to know individual pupils. These who may be vulnerable could include pupils: – pupils with special educational needs – those who speak English as an additional language – who are new to the school – pupils are gifted and talented – whose culture or ethnicity is different from the predominant cultture of the school – who are in foster care – whose parents’ views are not consistent with those of the school. 1.3The importance and benefits of valuing and promoting cultural diversity All schools must be aware of the importance of valuing and promoting cultural diversity. Most schools are actively include a number of strategies to ensure that children from all cultures feel welcome in school. These may be: – words are displayed in a variety of languages in classrooms and in different areas of the school – other languages spoken in different lessons or during registration – themed days, festivals and celebrations from other cultures discussed and explored – representations from other cultures found in books and learning resources, and displayes around the school – parents involved in ‘finding out’ sessions with children. These will have a number of benefits for children and young people – mainly that they will grow up in an environment which values cultural diversity and enables us to learn from one another. If children and young adults are finding out about other cultures and belief systems from an early age, they become more open and accepting towards each other. Children from all backgrounds need to know that the culture and status is valued as this helps them to feel settled and secure. This in turn contributes to the being able to learn. If they feel isolated or anxious, it is more likely that learning will be difficult for them. Outcome 2Pudersant the importance of prejudice and discrimination on children and young people 2.1Ways in which children and young people can experience prejudice and discrimination There are many ways in which children can experience prejudice and discrimination in school. There is a big pressure on children to fit in and to conform with expected appearances and behaviour that they may be discriminated against and bullied that they may be discriminated against and bullied if they do not. In school, all staff needs to be vigilant to ensure that children respect and embrace diversity. Children can experience prejudice and discrimination in the sam way as adults due to race, religion, age, sex, culture or ethnicity. We can focus on: – comments about a child’s appearance or clothes – children not interacting with others who may be ‘different’ – children being excluded because they are boys or girls – children only socialising with otrs of the same race or ethnicity. 2.5How to challange discrimination Whenever we witness discriminatory behaviour and comments, we have to challenge, record and report the incident. Children sometimes say things without understanding the impact on others, also the consequences. It should be made clear to them that their comments are not acceptable and that everyone in school should be treated fairly and with respect. Outcome 3Support inclusion and inclusive practices in work with children and young people 3.1What is meant by inclusion and inclusive practices Pupils are all have an equal right to education and learning. Equal opportunities and inclusion should take account not only of access to provision on school premises, but also to facilities outside the school setting. All organisations that offer educational provision must by law ensure that all pupils have access to a broad and balanced curriculum. The school should ensure that inclusive practices are a matter of coures within day-to-day provision and that any barriers to inclusion are identified and removed.

Essay about Jane Eyre Ap Question - 861 Words

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Internal Controls Essay - 1295 Words

Internal Controls Internal controls are all of the protocol and methods by which a company or organization protects its assets and ensures the correctness and reliability of its financial and accounting records. Tight internal controls are essential to any company that desires confidence in its stockholders and clients. Recent accounting scandals at companies such as Enron and Tyco have necessitated the need for strong internal controls and accounting procedures. As a result of these accounting scandals new legislations and organizations have been developed to audit private companies and ensure that the proper controls are in place. The Sarbanes-Oxley Act of 2002 (SOX) was passed after the Enron scandal had been all over television†¦show more content†¦SOX also increased the duties of Human Resources now requiring tracking of all degrees and certificates, proper separation of duties, and monitoring of an organizational chart (Weygandt, Kimmel and Kieso, 2008 p 344). 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