Essay: Product Price Relationship with Supply and Demand

Sample Paper

Words 573

This is a 2-page essay discussing the relationship between product price with supply and demand it discusses three articles.

August 13, 2003.  AAA: Florida gas prices rise with consumer demand

http://orlando.bizjournals.com/orlando/stories/2003/08/11/daily22.html

This article, which appeared in the Orlando Business Journal in August, is about the rising gasoline prices due to increase in demand. Since July, The regular unleaded rose 6.9 cents while midgrade increased by 6.7 and the premium unleaded gasoline rose by 6.9 cents. The AAA fuel gauge report says that the prices started increasing in early summer and will peak in the end of August. This report was taken from the AAA Daily Fuel Gauge Report, which is founded on more than 60,000 credit card transactions.

This report is related to microeconomics because the increase in demand from the consumers has lead to an increase in prices, the supply has not increased from the producers therefore the price of gas has increased.

I believe that this increase of prices mentioned in the article is due the summer months and will most probably decrease as the summer months end at the beginning of September.

Current Edition: 30 August 2003. Farm Management. Strong demand in ‘short’ harvest. By Andy Doyle

http://www.farmersjournal.ie/2003/0830/farmmanagement/crops/index.shtml

 

This article is about the increase in the prices of wheat and other crops in European countries due to drought in the region. Consumers are paying 114 to €115 for green wheat. This is because of low yield and therefore reduced supplies due to the drought in the region. In addition, short-term prices are even higher and customers are willing to pay. Although dry barley prices have decreased to some extent, however this report states that to be only temporary. This has also lead to the fears of introduction of export taxes by EU. Additionally, the harvest, which is almost over, is also not very promising.

This article is discussing the increase in prices when the supply has decreased and demand is constant. The decrease in supply is because of the low yield of the grains specially wheat and barley in the EU region.

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