Question

This course has a Final project which is in the form of a PowerPoint presentation.

The student should focus on a topic of interest from the course. Topics includes:

1. Internation Trade

2. Globalization and Protectionism

3. Financial Markets

4. Public Economy

5. Information, Risk, and Insurance

6. Environemental protection and Negative Externalities

7. Labor Markets and Income

8. Monopolistic Competition and Oligoply

9. Proverty and Economic Inequality

10. Labor and Financial Markets

11. Prefect Competition

12. Supply and Demand

Develop a PowerPoint presentation that will be submitted during the final week of class.

The first slide should be your introduction slide, the next 10-15 slides should be informational slides, the last slide should be the reference slide.

DUE ON 03/05/2020 or 03/06/2020.

Answer 1

Supply and Demand

Introduction

The law of supply and demand is actually an economic theory that was popularized by Adam Smith in 1776. The principles of supply and demandhave been shown to be very effective in predicting market behavior. However, there are multiple other factors that affect markets on both a microeconomic and a macroeconomic level.

In microeconomics, supply and demand is an economic model of price determination in a market. It postulates that, holding all else equal, in a competitive market, the unit pricefor a particular good, or other traded item such as labor or liquid financial assets, will vary until it settles at a point where the quantity demanded (at the current price) will equal the quantity supplied (at the current price), resulting in an economic equilibriumfor price and quantity transacted.

Demand:-

Demand is the quantity of a good that consumers are willing and able to purchase at various prices during a given period of time.[1] The relationship between price and quantity demanded is also known as the demand curve. Preferences which underlie demand, are influenced by cost, benefit, odds and other variables.

Factors influenving demand:-

1)Price of commodity

2)Price of another commodity

3)Income

4)Tase and preference

5)Adverticement

6)Weather

Price elasticity of demand :-

PED is a measure of the sensitivity of the quantity variable, Q, to changes in the price variable, P. Elasticity answers the question of the percent by which the quantity demanded will change relative to (divided by) a given percentage change in the price. For infinitesimal changes the formula for calculating PED is the absolute value of (∂Q/∂P)×(P/Q).

Supply:-

supply is the amount of a resource that firms, producers, labourers, providers of financial assets, or other economic agents are willing and able to provide to the marketplace or directly to another agent in the marketplace. Supply can be in currency, time, raw materials, or any other scarce or valuable object that can be provided to another agent. This is often fairly abstract. For example in the case of time, supply is not transferred to one agent from another, but one agent may offer some other resource in exchange for the first spending time doing something. Supply is often plotted graphically as a supply curve, with the quantity provided (the dependent variable) plotted horizontally and the price (the independent variable) plotted vertically.

Factor influencing supply:-

1)Price of commodity

2)Price of other commodity

3)Price expectation

4)production condition

5) Input price

The price elasticity of supply (PES) measures the responsiveness of quantity supplied to changes in price, as the percentage change in quantity supplied induced by a one percent change in price. Since supply is usually increasing in price, the price elasticity of supply is usually positive.

Market equilibrium is a market state where the supply in the market is equal to the demand in the market. The equilibrium price is the price of a good or service when the supply of it is equal to the demand for it in the market. If a market is at equilibrium, the price will not change unless an external factor changes the supply or demand, which results in a disruption of the equilibrium.