Assignment | Managerial Economics

Added on - 21 Apr 2020

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Running head: MANAGERIAL ECONOMICSManagerial EconomicsName of the StudentName of the UniversityAuthor Note
1MANAGERIAL ECONOMICSTable of ContentsAnswer 1:.........................................................................................................................................2Answer 2:.........................................................................................................................................4Answer 3:.........................................................................................................................................8References......................................................................................................................................11
2MANAGERIAL ECONOMICSAnswer 1:IntroductionIn markets, the goods and services are transacted because of two facts. One of them is thefact that people cannot produce everything, which is consumed by people, solely. On the otherhand, focusing on the production of a particular good helps in increasing in the efficiency inproduction of the good and also leads to production of the same in an increased amount. Theequilibrium in market, is determined by the mutual interactions of the demand and the supplyforces. Thus, when there are changes in the supply and demand forces of a particular good orservice, the reactions of the buyers and the sellers change accordingly, which in its turn, leads toa change in the equilibrium in the market (Hall and Lieberman 2012).GraphsFigure 1: Determination of Equilibrium with the help of Demand and Supply
3MANAGERIAL ECONOMICS(Source: As created by the author)Figure 2: Changes due to a fall in the production of oil(Source: As created by the author)DiscussionThe demand factor in any market shows the buyer’s side dynamics. Demand curve is therepresentation of the willingness of a buyer to avail some good or service, backed by theirpurchasing power, at different levels of the prices for the same commodity. The seller’s sidedynamics, on the other hand, is represented by the supply side. The supply curve is the graphicalrepresentation of the willingness of the sellers to sell their products at different levels of prices.The equilibrium occurs, in the market, at the point where the demand curve and the supply curve
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