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Bus 508 the Business Enterprise week 3 Assignment 1

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Bus 508 the Business Enterprise week 3 Assignment 1
Week 3: Assignment 1
BUS 508: The Business Enterprise
Professor N. Nayak
Discuss what you think will happen to the supply, demand, and price of
the product in the short-term.
The supply of the pies is based on the demand—the idea that if the price
of doing something goes up, then people will want to consume less of it,
and vice versa. The ‘something’ has to be good and not bad. Weeds will
constantly go up in supply and continue to grow, but nobody wants them,
and therefore the supply means nothing. The quantity demanded equals
the quantity supplied. In the case of Mrs. Acres Homemade Pies, the
supply of pies will increase because the number of consumers has
increased, therefore increasing demand. The price of the product will
stay the same, because the expansion to provide more staff and use of
the facility will bring in more revenue.
Discuss what you think will happen to the supply, demand, and price of
the product in the long-term.
In the long-term, based on the success rate of Mrs. Acres Homemade
Pies, I think the supply will continue to rise if the demand continues to
rise as well. Given the information, the pies continued to sell and the
profit went up for Mrs. Acres—even though the cost of expansion to
produce more pies increased. Should the number of consumers continue
to increase, the demand for the pies will go up. The makers of the pies
will need to continue to increase in numbers, therefore increasing the
supply as well. To increase the growth of making the pies, the cost will
go up. Therefore, the price of the pies for the consumer will rise. If the
potential for profit increases in the long-term, Mrs. Acre will continue to
supply more pies while having to borrow less money to increase her
business at the same time.
Explain why you think supply, demand, or equilibrium price will be
different, if at all, in the short-term and the long-term.

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