Description
Need help with week 2 assignment. Assignment must be way below 12% plagiarism and mostly free from website content. A total of 3 references have to be utilized, I have included one reference that has to be there. All instructions are in attachment to include grading Rubik.
Reference:
Mankiw, N. Gregory (2015). Principles of Microeconomics (7th ed.). Stamford, CT: Cengage Learning
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Explanation & Answer
Attached.
Running head: SUPPLY AND DEMAND MODEL
Supply and Demand Model
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Institution
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SUPPLY AND DEMAND MODEL
Introduction
Demand is the economic principle which explains the consumers need and willingness to
pay a given price for a specific product or service. Generally, an increase in the price of a
product decreased the demand for that product. On the other hand, supply is the principle which
explains the amount of a given product or service which the supplier is ready and able to supply
into the market (Hildenbrand, 2014). This research will explain into details some of the concepts
associated with demand and supply in a market.
Why the equilibrium of supply and demand is desirable
The supply and demand usually control the quantity of goods produced and the exact
price at which the products are sold. For a sustainable growth of the market, there must be a
point of equilibrium. The point of equilibrium is the point in the supply curve intersects the
demand curve. At this point, the amount of the product demanded is equal to the amount
supplied (Hildenbrand, 2014).
The equilibrium of demand and supply is usually desired since it has great positive
effects to the sellers and the buyers. In case the price of a given product is charged at
equilibrium, some of the consumers will have a bargain since they would be ready to purchase
the product even when the price is higher. In additio...