Economics Assignment: Detailed Analysis of Demand, Supply, and Pricing

This assignment delves into the core concepts of economics, specifically focusing on demand, supply, and their interplay in determining market prices. It examines the impact of government interventions, such as price ceilings and price floors, on market dynamics. The assignment explores the relationship between the demand curve and quantity demanded, the supply curve and changes in price, and the influence of external factors on both. It includes a discussion on how these elements affect the overall pricing and market equilibrium. The document also provides references to academic sources supporting the analysis. Overall, the assignment offers a comprehensive overview of fundamental economic principles related to supply, demand, and pricing strategies.

Project

Table of Contents
INTRODUCTION...........................................................................................................................1
Impact of government ceilings on the market place....................................................................1
Differentiation between Demand curve and quantity demanded.................................................1
Drawing up of demand curve.......................................................................................................1
Differentiation between supply and quantity demanded.............................................................2
Supply curve and change in price and outside factors.................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Impact of government ceilings on the market place
The government ceilings on the market place can be seen by identifying the changes in
prices which can happen regularly in the market. Thus in this way it can be said that this type of
ceiling can influence the level of demand in the market and the companies can be forced to set
their price in a particular range only.
Impact of price floors created by the government on the market place
A Price Floor refers to the limit imposed by the government on the fixation of the prices.
It has to be higher than the equilibrium price in order to be effective. Thus when the government
decides to impose ceiling on price through price floors this can create an impact on the market
place because the companies which are operating in the market place are required to ensure the
price which they are setting is within a particular range. This can help in keeping the prices of
the commodities in check and helps in ensuring that the overall goals and objectives related to
prices can be attained highly effectively and efficiently.
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Differentiation between Demand curve and quantity demanded
The demand curve is a downward sloping curve from left to right. With an increase in the
overall level of prices the quantity demanded can go upwards which can create an overall impact
on the level of prices which are set. Thus it can be said that there is a negative relationship
between Demand curve and quantity demanded. Downward trend in demand curve will mean
that quantity demanded will be enhanced (Candela and Geloso, 2018).
Drawing up of demand curve
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The price which is present in this demand curve can also be influenced by a number of
outside factors like market situation, customers' choice etc.
Differentiation between supply and quantity demanded
The supply curve is an upward facing curve. With an increase in price the overall supply
can be enhanced. Thus it can be said that supply and quantity supplied share a positive
relationship with each other.
3

Supply curve and change in price and outside factors
With an increase in the price the supply can go up. Further the price and the outside
factors are influenced in the following manner by the factors like customer attitude, situation of
the economy etc (Goldfarb and Tucker, 2019).
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REFERENCES
Books and Journals:
Candela, R. A. and Geloso, V. J., 2018. The lightship in economics. Public Choice. 176(3-4).
pp.479-506.
Goldfarb, A. and Tucker, C., 2019. Digital economics. Journal of Economic Literature. 57(1).
pp.3-43.
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