When Supply Meets Demand
Teach a parrot the terms deliver and take and youve got an economist.
Thomas Carlyle
MM212-section xx
John Smith
Month Day, Year
One of the depict concepts in the development of a business model is the damage at which give is able to adopt. The point at which implore is equal to come forth is called equilibrium.
When we are producing and selling a product, it is serious to know the ideal expense we should charge so that the supply we provide exit be in balance with the engage of the public.
The harm at which this occurs is determined by two colligate concepts: The faithfulness of Supply, and the Law of Demand.
The Law of Supply states that as the price of a good rises, its amount of m geniusy supplied will rise, and vice versa.
The Law of Demand states that as the price of a good rises, its quantity demanded will fall, and vice versa.
Example Problem:
Suppose a family wants to sell cupcakes to raise money. Knowing that, as the price increases the demand for the cupcake falls, and that increasing prices motivates them to make more cupcakes, there will be a point where the supply and demand meet one another.
Assume that at a given price x, in dollars, an individual customer will be willing to secure a particular quantity, y, of cupcakes.
If we graph the two related concepts, supply and demand, on one plane, with price being on the plane axis and the quantity of cupcakes on the vertical axis, we can see to it the situation.
The price at which supply and demand are equal can be found by graphing the supply and demand curves on the same plane. We can see that the intersection appears to be at the point (4,5), which tells us that at a price of $4 per cupcake, the public will demand 5 cupcakes per sale, and we will provide 5 cupcakes per sale, and the situation will be in balance.
Resources
Toby & Slater. (2010). College Algebra. Prentice Hall.
Yeager, Tim. (1996-2007) OnLineTexts.com,...If you want to get a full essay, order it on our website: Ordercustompaper.com
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