Sample Essay

  • Supply:

Supply is defined as the production of goods and services to the market when the price is high (McConnell, Flynn and Brue). The reason behind the supply of the goods in the market when the prices are high is the possibility of the increase in the revenue.

The limits of production are based upon the availability of the productive resources or capital stocks of the economy. These resources and capital locks include the natural resources, labor etc. A stable, secure and established economy possesses the maintaining ability along with social capital. Less production of resources affects the supply as well. As it has been mentioned in the article that 90% of the oranges and grapes on 122-acre orchard are damaged, this shows the decrease in the supply. As orange is considered to be the fruit which is more demanded in winter season, In Florida the prices of oranges an other fruits will increase because of the low production of these fruits.

Concept#4

Demand:

Demand is said to be the amount of good of service which is required by the buyer (McConnell, Flynn and Brue). In other words Demand could be defined as the schedule or a curve showing the various amounts of products and commodities could be purchased by the willing and able consumers during a specified period of time, other things equal (McConnell, Flynn and Brue). The law of demand states that the demand will be less if the price of the good is high, if all factors remain equal.

The temperature of the water is increasing as it has been noted in the article that 52 degrees is a critical level for the fishes such as angelfish, mollies, tetras etc. This would decrease the fisheries which is required as per the demand of the people. In this way the price will be increased. In a similar way the fast the demand of electricity will increase along with the consumption of white meat which is most demanded by the buyers in the winter season.

Concept#5

  • Price:

Price is defined as the amount of money it exchanges for (McConnell, Flynn and Brue). Price is the reflection of the supply and demand. A lot of people confuse this word with the value. There are many differences between price and value. The price of any commodity or utility is noted by the value of the capital and with the comparison to the prices of other commodities.

Price is an obstacle that deters consumers from buying. The higher the obstacle, the less of a product will buy; the lower the obstacle, the more they will buy. Since the demand of fruits and vegetables will be rising, keeping the supply constant, so the price of these products will definitely increase. However if the supply is increased, the possibility of price reduction will be high.

Concept#6

  • Opportunity Cost:

Because the resources are scarce relative to the unlimited wants to satisfy, people must choose among alternatives. More electricity means fewer other products. The amount of other products that must be forgone or sacrificed to obtain 1 unit of a specific good is called the opportunity cost of that good (McConnell, Flynn and Brue).

In the case of Florida, the extra amount of electricity that is going to be produced because of the high demand of electricity heating will obviously be made on the cost of something else. The energy that had to be spent on making some other product is not being used in the production of extra electricity.

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