Popular in Intro to Sociology
Popular in Liberal Arts
This 7 page Class Notes was uploaded by an elite notetaker on Saturday August 29, 2015. The Class Notes belongs to SOC 101 at University of Miami taught by Berkeley Franz in Summer 2015. Since its upload, it has received 33 views. For similar materials see Intro to Sociology in Liberal Arts at University of Miami.
Reviews for Class Notes
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 08/29/15
Aspect ext rieur Comment L enseigne de l agence est bien Visible Le batiment esti1 en bon tat La Vitrine est elle bien am nag e Is the sign of the agency Visible Is the building in good condition Is the display window well arranged Aspect int rieur Comment L agence est elle propre Le bureau d accueil esti1 propre et rang Le sol est i1 propre Les si ges sonttils en bon tat Informations permanentes Bonne misc a disposition des folders L information sur les offres est affich e Temps d attente Nombre de clients en attente a notre arriV e Dur e de l attente Nombre d employ s dans l agence Tenye et comportement L interlocuteur porte t il un t shirt mentionnant le nom de l agence Jetair L interlocuteur esti1 poli L interlocuteur se consacre pleinement a notre demande Information donne e L information est adapt e a la demande L information est Claire et compl te Remise d un folder concernant les offres Is the office clean Is the reception desk clean and tidy Is the oor clean Are the seats in good condition Good posiotioning and display of the brochures Is the imformation about the offer displayed Number of clients waiting when you arrived Waiting time Number of employees in the agency Is the agent wearing a t shirt with the name of the agency J etair on it Is the agent polite Is the agent fully dedicated to an indiciduals requests The information is adapted to the specific request The information is clear and adequate Do they give a brochure about the offers Supplv and Demgnd F581 Demand refers to how much quantity of a product or service is desired by buyers The quantity demanded is the amount of a product people are willing to buy at a certain price the relationship between price and quantity demanded is known as the demand relationship Supply represents how much the market can offer The quantity supplied refers to the amount of a certain good producers are willing to supply when receiving a certain price The correlation between price and how much of a good or service is supplied to the market is known as the supply relationship Price therefore is a re ection of supply and demand The relationship between demand and supply underlie the forces behind the allocation of resources In market economy theories demand and supply theory will allocate resources in the most efficient way possible A The Law of Demand The law of demand states that if all other factors remain equal the higher the price of a good the less people will demand that good In other words the higher the price the lower the quantity demanded The amount of a good that buyers purchase at a higher price is less because as the price of a good goes up so does the opportunity cost of buying that good As a result people will naturally avoid buying a product that will force them to forgo the consumption of something else they value more The chart below shows that the curve is a downward slope a E Demand ea nmship Fl39 P2 a E 51 Ella g P1 E r E E E g E Demand l l ll ll ll r1 E132 111 mun lm39in CamHEN arm a Irratna39ipudia ll39l39l A B and C are points on the demand curve Each point on the curve re ects a direct correlation between quantity demanded Q and price P So at point A the quantity demanded will be Q1 and the price will be P1 and so on The demand relationship curve illustrates the negative relationship between price and quantity demanded The higher the price of a good the lower the quantity demanded A and the lower the price the more the good will be in demand C B The Law of Supply Like the law of demand the law of supply demonstrates the quantities that will be sold at a certain price But unlike the law of demand the supply relationship shows an upward slope This means that the higher the price the higher the quantity supplied Producers supply more at a higher price because selling a higher quantity at a higher price increases revenue Price 3155 Enigma Relationship E a P39 JE1 A 1 I 111 U13 mt ty mm i hi 15363 2 lme qirediatum A B and C are points on the supply curve Each point on the curve re ects a direct correlation between quantity supplied Q and price P At point B the quantity supplied will be Q2 and the price will be P2 and so on C Supply and Demand Relationship Now that we know the laws of supply and demand let39s turn to an example to show how supply and demand affect price Imagine that a special edition CD of your favourite band is released for 20 Because the record company39s previous analysis showed that consumers will not demand CDs at a price higher than 20 only ten CDs were released because the opportunity cost is too high for suppliers to produce more If however the ten CDs are demanded by 20 people the price will subsequently rise because according to the demand relationship as demand increases so does the price Consequently the rise in price should prompt more CDs to be supplied as the supply relationship shows that the higher the price the higher the quantity supplied If however there are 30 CDs produced and demand is still at 20 the price will not be pushed up because the supply more than accommodates demand In fact after the 20 consumers have been satisfied with their CD purchases the price of the leftover CDs may drop as CD producers attempt to sell the remaining ten CDs The lower price will then make the CD more available to people who had previously decided that the opportunity cost of buying the CD at 20 was too high D Equilibrium When supply and demand are equal ie when the supply function and demand function intersect the economy is said to be at equilibrium At this point the allocation of goods is at its most efficient because the amount of goods being supplied is exactly the same as the amount of goods being demanded Thus everyone individuals firms or countries is satisfied With the current economic condition At the given price suppliers are selling all the goods that they have produced and consumers are getting all the goods that they are demanding LT Qua mt w Capprigf i Em 2 II39I39L39EE FEEIiEIJZI39I39I As you can see on the chart equilibrium occurs at the intersection of the demand and supply curve Which indicates no allocative inefficiency At this point the price of the goods Will be P and the quantity Will be Q These figures are referred to as equilibrium price and quantity In the real market place equilibrium can only ever be reached in theory so the prices of goods and serVices are constantly changing in relation to uctuations in demand and supply E Disequilibrium Disequilibrium occurs Whenever the price or quantity is not equal to P or Q 1 Excess Supply If the price is set too high excess supply will be created Within the economy and there Will be allocative inefficiency Eli Price Ii F ll At price P1 the quantity of goods that the producers Wish to supply is indicated by Q2 At P1 however the quantity that the consumers want to consume is at Q1 a quantity much less than Q2 Because Q2 is greater than Q1 too much is being produced and too little is being consumed The suppliers are trying to produce more goods which they hope to sell to increase profits but those consuming the goods will find the product less attractive and purchase less because the price is too high 2 Excess Demand Excess demand is created when price is set below the equilibrium price Because the price is so low too many consumers want the good while producers are not making enough of it Price i5 ELI puny Iii Fl391w r1 r ue will lamright arm a Irmn ipmdirajm In this situation at price P1 the quantity of goods demanded by consumers at this price is Q2 Conversely the quantity of goods that producers are willing to produce at this price is Q1 Thus there are too few goods being produced to satisfy the wants demand of the consumers However as consumers have to compete with one other to buy the good at this price the demand will push the price up making suppliers want to supply more and bringing the price closer to its equilibrium F Shifts vs Movement 1 Movements A movement refers to a change along a curve On the demand curve a movement denotes a change in both price and quantity demanded from one point to another on the curve The movement implies that the demand relationship remains consistent Therefore a movement along the demand curve will occur when the price of the good changes and the quantity demanded changes in accordance to the original demand relationship In other words a movement occurs when a change in the quantity demanded is caused only by a change in price and vice versa mi il n l lt IIIIIIIIE the EEI39HIEII39IEI EILI we EI Price II E 1 II FIE a a a ailsu l F quot Fi quot1 n i i Berna 11 El II II I II I 1 IEII I1 I1 11 I1 II l1 II II I1 II I211 111 I39ll III I IQIUIEII IIIW apprigfni Em 1 ll39l39h39t i p diil IIIn39 Like a movement along the demand curve a movement along the supply curve means that the supply relationship remains consistent Therefore a movement along the supply curve will occur when the price of the good changes and the quantity supplied changes in accordance to the original supply relationship In other words a movement occurs when a change in quantity supplied is caused only by a change in price and vice versa IIIIIunIrEImEIrIt IIIILIIIE the Supply ELIIWE WEI Price II 3 I I II I I I I I I II I I El Quantity apprigfnf 321m 1 IrrIIza iupmudia IIIn39 2 Shifts A shift in a demand or supply curve occurs when a good39s quantity demanded or supplied changes even though price remains the same For instance if the price for a bottle of beer was 2 and the quantity of beer demanded increased from Q1 to Q2 then there would be a shift in the demand for beer Shifts in the demand curve imply that the original demand relationship has changed meaning that quantity demand is affected by a factor other than price A shift in the demand relationship would occur if for instance beer suddenly became the only type of alcohol available for consumption Shift in amand fir BEEF Price I H 111 112 Qua mt w upyrig f arm n Invzna ipmudiraxum Conversely if the price for a bottle of beer was 2 and the quantity supplied decreased from Q1 to Q2 then there would be a shift in the supply of beer Like a shift in the demand curve a shift in the supply curve implies that the original supply curve has changed meaning that the quantity supplied is effected by a factor other than price A shift in the supply curve would occur if for instance a natural disaster caused a mass shortage of hops beer manufacturers would be forced to supply less beer for the same price Shift in Supply fur Bear 5139 Price I1 H ll ll 112 1311 Hum mt w ap yrig f Em n Inansinpmudiraxm
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'