Can someone help me with a 7 page research paper on Supply and Demand. Supply an

Question

Can someone help me with a 7 page research paper on Supply and Demand.

Supply and demand are the two most important elements of microeconomics. Choose a product in the market, e.g., in electronics, food, energy, or car industry. Discuss/analyze the effects of supply and demand on the product price and the effect of price fluctuation on the supply and demand of the product in the market. Then, discuss how this price fluctuation affects individual spending (i.e. individuals with different income brackets by using household poverty line categories published by U.S. Department of Health & Human Services). Analyze how the change of demand and supply influences the bottom line (profit) for small businesses.

Thank you!!

Explanation / Answer

Demand for a commodity refers to the desire to buy a commodity backed with sufficient purchasing power and the willingness to spend. There exist negative relationship between the price of the commodity and its quantity demanded.

Supply of a commodity refers to a schedule showing various quantities of a commodity that the producers are willing to sell at different possible prices of the commodity at a point of time. There exist positive relationship between the price of the commodity and its quantity supplied.

Let us take an example of food item i.e. Tea.

If demand of tea is higher than price of tea will increase because there is excess demand in respect of supply of tea. On the other hand, if there is excess supply of tea irrespective of demand then price of tea will decrease in the market.

When price of tea increases in the market then demand of tea decreases as consumers shift their demand in favor of its substitute good i.e. coffee. While increase in price of tea increases its supply because producers are able to earn more profit from selling it.

Price fluctuation affects the profits of the firm because it affects the demand of the product. Increase in price decreases the demand of product which also decreases the profit of the firm and vice-versa. Small businesses majorly suffers due to this price fluctuation because they are at the initial phase of production.

Price fluctuation affects the individual spending as price fluctuation affects the purchasing power of the consumer. When price increases then people are purchasing power of individual decreases and vice-versa.

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