Understanding supply and demand is an essential foundation for business economics.
Understanding supply and demand is an essential foundation for business economics. It is useful to understand supply from the source of the producer and demand from the perspective of the consumer. You will analyze both from a graphical and applied approach, so that you can perform each in a practical environment.
Upon completion of this assignment, you should be able to:
Explain the role of supply and demand concepts in management decision making.
Explain how the economic concepts of opportunity costs, scarcity of resources, and elasticity lead to differences in pricing strategy.
Incorporate biblical and ethical principles into economic theory and practice.
Resources
Bible
Textbook: Economics for Managers
Media: Workshop One Animations
File: Workshop One Animation Transcripts
Background Information
The concept of supply and demand is essential for any manager operating in a business environment. When the factors held constant behind a particular demand or supply curve change, equilibrium prices respond to these demand and supply shifters.
Instructions
Before you begin this assignment, read Chapters 1 and 2 in Economics for Managers.
Watch the following animations. To move through the animation sequence, click Nextuntil you reach the end of that animation sequence. These animations will prepare you for the discussions and other assignments in this and upcoming workshops. Or you may read the transcript: Workshop One Animation Transcripts.
Read Jeremiah 17:8 in the Bible.
Navigate to the threaded discussion and respond to the following:
Using demand and supply analysis, apply supply and demand to the following scenario. The following facts describe the peanut and peanut butter industry:
Another hot, dry summer devastated the 2011 peanut crop. Although peanuts are typically planted between mid-April and June, farmers had to wait several weeks after that period for rain.
Many peanut butter producers looked for ways to cut costs in other areas, such as shipping and warehousing.
Because of the high price of cotton, some farmers had already planted cotton in place of peanuts.
The scorching heat and drought singed many peanut plants, leaving more peanuts to be processed for oil rather than used for peanut butter.
Explain the effects of these changes, using supply-and-demand analysis on both the peanut and the peanut butter markets.
Droughts of all kinds have occurred since the beginning of time. In your initial response, relate Jeremiah 17:8 to the concept of supply and demand.
Your initial post is due by the end of the fourth day of the workshop.
Read and respond to at least two of your classmates’ postings, as well as all follow-up instructor questions directed to you, by the end of the workshop.
Your postings should also:
Be well developed by providing clear answers with evidence of critical thinking.
Add greater depth to the discussion by introducing new ideas.
Provide clarification to classmates’ questions and provide insight into the discussion.
Answer preview Understanding supply and demand is an essential foundation for business economics.
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