Market Price

Learning Log 3. From Mr. McManamon, I learned how market price fits into the graphs we made for supply and demand. I did not really understand how people came to the price that they put on merchandise in stores, but I believe I understand now. It makes sense that where the curves meet is where the market price is because that is where sellers are going to make the most profit and where consumers will get the most for their money. Also, I wonder if a seller were to have a product at their store, and the value of the product goes up or down, do they simply change the price to match the change of the market? or do they enforce it on their next delivery of the product? just wondering... Also, how exactly do stores compete with each other if they each sell the same product at relatively the same price?

I understand the overall concept of where the Supply and Demand curves meet is where the Market Price is. I also know how to make Supply and Demand curves, which is helpful for this concept.

As with all my examples, the student store! So, for each of our products we've now had time throughout the year to judge what the demand of the high school is. From that, each of the groups have to judge what they need to supply in order to meet the demands of the students of Tualatin High School. All this must be done while also making a profit which comes from meeting the supply to match demand. Victory.

Supply!

Learning Log 2

So I knew that Supply was how much a company could produce and distribute, but i didn't know how that connected to the demand curve. I think its fascinating that the demand curve and the supply curve come together to produce the market price. I still wonder how the company prices things based on the materials used to make them and how the add in the transportation cost but I think we're going to learn about that later and that that cost is currently just added into the curves we're making.

I understand why companies supply the amount they do because they are hoping to sell their product at the price they set. But they can't always do that and need to supply less for lower prices in order to try and get the consumers to want to buy their product at a higher price. This doesn't always work in the eyes of the consumer because they can substitute some products for alternates that don't cost as much which then causes the substitute company to need to supply more which then helps the substitute company.

Last week, the coke group in the student store didn't order more coke products because there appeared to be enough to make it through the next week. However, the next couple days used up the rest of the supply we had and then people were demanding more drinks for the next few days until the order was placed and delivered and places in the store for sale.

Learning Log 1

So, I'm not exactly positive about what I'm writing, but I'm going to talk about demand and economics. Before we started this unit I knew about demand and that consumers had to demand something for it to be made, because if people don't demand it then people won't buy it and you won't make a profit. I didn't really know about demand schedules and TRT's but I feel like it could be useful in the future to know so I'm glad I learned it. I don't really have any questions that I feel really need to be answered, I feel like I understand everything I need to understand.
Again, not exactly sure how to show that I understand demand so I'm just going to go for it. Demand occurs when people feel like they need something like candy or clothes. Somethings are necessary to continue functioning at a normal level and this is called Inelastic demand. There are also things that an elastic demand and those are things that are not constantly demanded or can be replaced by a substitute which is often the same product, just a different price and a different brand. There are also ways to test whether or not things are being sold at the right price for profit, such as the Total Revenue Test.
For example, in the student store every class we are required to take inventory. This tells us what is selling and what is making a profit. However with the cookies that are sold at lunch, we are writing down how much of each type of cookie sold to determine what sells the most. Also in the store, last week the new shirts came in and on that single day alone, the store made over $1000, compared to other days without shirts that made around $200. In all, the more people demand the more things are given and the prices must be judged accordingly to how things are selling and what things are wanted.