The Supply and Demand Essay Example

prices of a product up, while excess supply induces competition among the suppliers which will eventually bring the price of a good down.

Activities

Given the following prices and demand for urgent care services there are various activities that were recommended and they include: Determining whether the urgent care services are on the supply side or on the demand side and the answer is that they are on the supply side, also determining whether at price $10 the market is at equilibrium and this is that at this price the market is not at equilibrium. Other activities that I was able to perform as to determine the excess supply and excess demand on urgent care services. In the tutorial there were no activities that I was unable to perform, all the issues regarding demand and supply were well explained and very help full in understanding the issue of demand and supply. The new concept learnt from this tutorial: From the tutorial I have learnt that the market can be manipulated by the suppliers in a way to encourage certain buying habits or to discourage them, the given example in the tutorial is that of pregnant women being promised free fast food after visiting the prenatal visits, the demand for prenatal care increases, in discouraging buying behaviour a tax will be imposed on harmful drugs like cigarettes which will increase their prices and bring the quantity demanded down.

References

1. Economics tutorial (2007) demand and supply, retrieved on 2nd October, available at http: //hspm. sph. sc. edu/COURSES/ECON/SD/SD. html