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BUS100 - Supply and Demand Framework | Bibliography

Added on - 04 Mar 2020

 

An annotated bibliography is a list of citations(or references) to books, articles, and website pages and documents of the available research on a given topic. The below document discusses the Bibliography with respect to the various types of supply and demand articles.

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Running head: BIBLIOGRAPHYBibliographyName of the Student:Name of the University:Author note:
1BIBLIOGRAPHYAzevedo, E.M. and Leshno, J.D., 2016. A supply and demand framework for two-sidedmatching markets.Journal of Political Economy,124(5), pp.1235-1268.Azevedo and Leshno have clearly stated that lower price does always imply greaterdemand. This is simply because as and when a good is sold at a cheap and affordable rate, theconsumers are able to get more value for their money, resulting in ‘consumer surplus’. Theauthors rightly state that this may not hold truth for substitute goods. For example, even if a boxof Coffee is charged low, if the price of Tea is still lower, people would prefer to buy thesubstitute goods only. However, they also refer to the Demand Curve which clearly demonstratesan inverse relation between the price of a commodity and the demand of the same.One major strength of the article is that the authors have explained the inverse relationbetween demand and price of a commodity with the help of economic theories, especially thetheory of Demand Curve that helps in explaining the scenario in a more effective way. Theauthors also refer to various cases, where the demand for a product has been found to increasewith the reduction of price. This adds to the credibility of the research. However, the weaknessof the article is that it does not consider the case of Veblen goods and Giffen goods which areexceptions to this concept.Forstall, T., 2017.Forbes Welcome. [online] Forbes.com. Available at:<https://www.forbes.com/sites/timworstall/2012/08/21/the-limit-to-apples-value-are-they-a-veblen-good/#4bc3712cd9f3> [Accessed 18 Aug. 2017].Forstall offers a counter-perspective to the well-known theory of economics regarding therelation between price and demand of a good. Forstall refers to the Apple products and shows
2BIBLIOGRAPHYhow even if the price goes up, consumers will buy the product. Similarly, he also explains that ifthe price goes down, it may decrease demand of the goods. The reason behind this is the Appleproducts are regarded more as status symbols rather than necessary products. Hence, Forstallclaims people will tend to consume them only if these are priced higher than the rival products.Consequently, a fall in the price will not prove how “rich and tasteful” these consumers are, andhence with the fall in price, consumer demand will not necessarily increase.A major strength of the article lies in the way it offers a counter-perspective to theestablished economic theory of price and demand. The article challenges the traditional theory,but it could draw on more examples, as it only refers to the Apple products, and thus theargument becomes weak. The article however is a bit biased in style, as it does not consider theexception. When the price increases, the middle income buyers will demand more of theexpensive product even though the higher class may not demand it as before.Saintvilus, R., 2017.Yes, I Would Pay $1,000 for an Apple Inc. (AAPL) iPhone 8. [online]InvestorPlace. Available at: <http://investorplace.com/2017/08/yes-i-would-pay-1000-for-an-apple-inc-aapl-iphone-8/#.WZaCs1UjHIU> [Accessed 18 Aug. 2017].Saintvilus in this newspaper claims that even if the price of an I Phone will increase, hewill not still think of stopping to consume the product. He states that I Phone has become moreof an obsession for many, and considering the social status associated with it, people will not buyit at a low price.The newspaper argues that the price reduction will not essentially imply demandincrease, and this is especially true in case of luxury and status commodities. The newspaper
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In brief, the above document tries to explain what is an annotated bibliography and how to write the bibliography for a particular topic or subject.