Premium Essay

Excel Spread Sheet Everest University

In: Business and Management

Submitted By BKalk218
Words 1447
Pages 6
1.) According to Miller (2014) “there is generally a direct relationship between price and

quantity supplied; as the price rises, the quantity supplied rises”(p. 58). How this concept

affects me and my family is that we are victims of the market place. My family and

myself cannot rely on prices remaining constant so we may end up having to pay

more at times because of the laws of supply and which way that pendulum may be

swinging at any given time. In short, because there has been more of a demand for

something and therefore more is being supplied, I may even have to do without it because

I choose not to buy it due to a price increase.

2.) According to Miller (2014) “another factor is ceteris paribus, conditions of supply; they

include the prices of resources (inputs) used to produce the product, technology and

productivity, taxes and subsidies, producers’ price expectations, and the number of

firms in the industry” (p. 62. How this affects me and my family is let’s say that I was

going to buy a refrigerator, the cost of products to produce refrigerators has risen, this

will increase the cost of the refrigerator in the long run, at that point it would be best to

wait it out and buy when the price evens out again. Another way that this theory affects

the economy and my family is that if timber were to increase in price, it would raise the

price of resources used to produce homes which in turn increases the price of homes

which in turn increases our property taxes. Lastly, in relationship to subsidies, if there are

a lot of businesses receiving subsidies, people will in return be paying more taxes.

3.) I do not drink coffee, I drink tea; it is normally cheaper and some teas are just as strong as

available coffees. If the price of coffee were to rise, it may draw attention to tea which…...

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