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.