Question and answer
How do the concepts of microeconomics help you understand the factors that affect shifts in supply and demand on the equilibrium price and quantity?
The supply and demand model relies on a high degree of competition, meaning that there are enough buyers and sellers in the market for bidding to take place. [ Buyers bid against each other and thereby raise the price, while sellers bid against each other and thereby lower the price. The equilibrium is a point at which all the bidding has been done; nobody has an incentive to offer higher prices
or accept lower prices. ]
Get an answer
Original conversation
User: How do the concepts of microeconomics help you understand the factors that affect shifts in supply and demand on the equilibrium price and quantity?

Weegy: The supply and demand model relies on a high degree of competition, meaning that there are enough buyers and sellers in the market for bidding to take place. [ Buyers bid against each other and thereby raise the price, while sellers bid against each other and thereby lower the price. The equilibrium is a point at which all the bidding has been done; nobody has an incentive to offer higher prices or accept lower prices. ]
smp0784|Points 3973|

User: How may you apply what you learned about supply and demand from the simulation to your workplace or your understanding of a real-world product with which you are familiar?



Weegy: After completing the “Applying Supply and Demand Concepts” simulation the following concepts and principles were identified: demand and supply along with equilibrium as microeconomic principles, [ and shifts in demand and supply along with price ceiling as macroeconomic concepts. The previous concepts were identified accordingly because microeconomics analyzes from the parts to a whole; therefore, supply and demand and equilibrium as the small parts that affect the whole. In contrast macroeconomics analyzing from the whole to the parts reflects how the concepts of price ceiling and shifts in demand and supply are larger outside factors that affect the smaller internal parts. Supply and Demand Curve Shifts In the simulation there were multiple examples reflecting shifts in the demand curve as well as shifts in the supply curve. For any supplier, a higher price is an incentive to supply more; therefore, as rental rates increased, the number of apartments GoodLife was willing to lease also increased. Typically, the reason for this shift could be either production or maintenance costs, which means that each additional unit of the product would be supplied at a higher price. As the rental rate increases, the number of apartments supplied increases is an example of an upward sloping supply curve. As for the shift in the demand curve, this was caused by the increase in population even though the supply of apartments was unaffected. At any given rental rate, an increase in population is automatically going to create more people demanding apartments for rent, thus causing the shift in the demand curve. Supply and Demand in the Workplace. ]
Expert answered|emdjay23|Points 387|

Question
Asked 2/11/2013 11:05:55 PM
0 Answers/Comments
New answers
Rating

There are no new answers.

Comments

There are no comments.

Add an answer or comment
Log in or sign up first.
18,801,467 questions answered
Popular Conversations
Race is a myth in the sense that one race is superior to another and ...
Weegy: True - Race is a myth in the sense that one race is superior to another and of there being pure races. User: ...
12/20/2014 6:09:11 PM| 2 Answers
Multiply. (-8.7)(-1.1) User: divide -5/-20
Weegy: The answer is 100
12/21/2014 10:42:03 AM| 2 Answers
definition of absurdity
12/20/2014 12:13:09 AM| 1 Answers
If your supervisor criticizes the way you handled a certain ...
Weegy: A. clarify how your way of handling it was best. User: You can perform your job well only if you A. ...
12/20/2014 12:00:56 AM| 1 Answers
Personal pronouns take different forms depending on whether they’re ...
Weegy: When we want to show that something belongs to somebody or something, we usually add 's to a singular noun and ...
12/20/2014 12:24:16 AM| 1 Answers
Subjects in sentences refer either to nouns or to A. adverbs. ...
Weegy: An adjective can come before or after a noun or pronoun in a sentence.
12/20/2014 12:23:55 AM| 1 Answers
Weegy Stuff
S
L
P
Points 1137 [Total 4981]| Ratings 0| Comments 1137| Invitations 0|Offline
S
L
Points 741 [Total 1432]| Ratings 1| Comments 731| Invitations 0|Offline
S
1
L
1
L
P
P
L
P
Points 692 [Total 14877]| Ratings 1| Comments 682| Invitations 0|Offline
S
Points 681 [Total 681]| Ratings 1| Comments 671| Invitations 0|Offline
S
P
C
L
P
L
1
Points 126 [Total 6445]| Ratings 1| Comments 116| Invitations 0|Online
S
L
Points 83 [Total 1543]| Ratings 1| Comments 73| Invitations 0|Offline
S
1
L
L
Points 33 [Total 6700]| Ratings 0| Comments 33| Invitations 0|Offline
S
Points 30 [Total 30]| Ratings 0| Comments 0| Invitations 3|Offline
S
Points 23 [Total 29]| Ratings 0| Comments 23| Invitations 0|Offline
S
Points 22 [Total 22]| Ratings 0| Comments 2| Invitations 2|Offline
Home | Contact | Blog | About | Terms | Privacy | Social | ©2014 Purple Inc.