Changes In Supply, Demand, And Price

801 words - 3 pages

In the 1950s, debt was unheard of. Credit cards were not in existence and most people believed that if you did not have the money to pay for it, either you bartered for it, or you simply did not buy it. Today, 50 years later, debt is at an all time high. More people filed bankruptcy in 2005 than the entire decade of the 1990s combined. Due to increased demand for credit cards, consumer debt is the cancer in our financial society. The available income is decreasing, so the supply is very low. The demand for more discretionary income is greater than it ever has been and the price for assistance has always been very high, until Primerica Financial Services came into existence. This company provides an opportunity to create supply, fulfill demand, and the price is right; it is complimentary.An article in Success from Home magazine (July 2005) states that many of today’s popular personal finance concepts have actually been Primerica’s mainstays for 30 years. Pay Yourself First, Dollar Cost Averaging, The Rule of 72, The High Cost of Waiting, and Buy Term and Invest the Difference – these are all fundamental financial concepts that Primerica Representatives have shared with their clients since its inception in 1977. The founders of the company began a crusade to help middle-income families with the "Buy Term and Invest the Difference" philosophy. That philosophy encouraged families to purchase affordable term life insurance so they would have more money to invest in their family's future. This creates a supply of discretionary income for families who are in desperate need of it.Why is there so much demand for Primerica’s financial solutions? Today’s families have financial problems. The Wall Street Journal wrote an article in July of 2000 that states household borrowing has risen almost 60% to $6.5 trillion in the past five years. As well, despite an unprecedented economic boom, more than half of Americans are worried about having enough money for retirement, says USA Today (2000, April). The demand for sound financial advice is astounding. People know they need financial assistance, but they do not know where to go for the advice.David C. Colander (2004) writes that anything—except the price of the good itself—that affects demand (and many things do) is a shift factor. While economists agree these shift factors are important, they believe that no shift factor influences how much is demanded as consistently as does price of the specific item. That is what...

Find Another Essay On Changes in Supply, Demand, and Price

Supply, Demand, and Price Change Essay

997 words - 4 pages anticompetitive conduct, and to take action where appropriate. This is the only industry in which the FTC maintains this type of a price monitoring project (Federal Trade Commission [FTC], 2005).In a July 5, 2005, article titled “FTC Releases Report on ‘Gasoline Price Changes: the Dynamic of Supply, Demand, and Competition,’” the Federal Trade Commission reports that it issued a report entitled “Gasoline Price Changes: The Dynamic

Supply and Demand and Price Elasticity Paper

1041 words - 4 pages Supply and Demand and Price Elasticity PaperPricing, supply, and demand are the foundation of the economic structure. This paper is intended to highlight the affects of each. The changes in supply and demand will be looked at along with how changes in price and quantity influence market equilibrium. It will also look at how the necessity of a good and the availability of substitutions affect price elasticity. Finally, it will compare and

Supply, Demand, Price

886 words - 4 pages industry. This paper will analyze an article based on the 2005 oil outlook and discuss why changes have occurred in the supply, demand, and price in oil.DemandDemand is the amount of a good or service that economic agents are willing and able to buy at alternative prices, other things remaining the same. According to Matthew R. Simmons, Chairman and CEO, Simmons & Company, International, Houston (2004), the biggest oil story in 2004 was the

Distinguish between an extension and a contraction and an increase and a decrease in supply and demand. What factors may cause such changes?

799 words - 3 pages equal Leakages. On a chart this is represented when the supply and demand curves intersect at the point where supply and demand are equal. The price at which the number of products that businesses are willing to supply equals the amount of products that consumers are willing to buy at a specific point in time.Basic Supply/Demand GraphIf either of the curves shifts, a new equilibrium will be formed. If one of the determinant of demand changes, the

explain the terms supply, demand, equilibrium price, and competition. how do these forces interact in the american economy?

1208 words - 5 pages Pengelola: individu atau organisasi yang mencoba untuk mendapatkan keuntungan dengan menyediakan produk yang memenuhi kebutuhan masyarakatProduk: barang atau jasa dengan karakteristik berwujud dan tidak berwujud yang memberikan kepuasan dan manfaatprofit: perbedaan antara berapa biaya untuk membuat dan apa pelanggan membayar untuk ituorganisasi non profit: organisasi yang dapat memberikan pelayanan yang baik atau tapi tidak memiliki tujuan dasar

Supply and Demand in Dermatology

1204 words - 5 pages and demand of dermatologic care. The demand for dermatological care is relatively inelastic, people generally do not forgo care when they need it even when the price increases. However there are many different factors that can have an effect on demand. As with most things the marginal utility quickly decreases, most people don't need to go to a dermatologist once a month or even every six months. One reason that demand in dermatology is

Causes for Shifts in Supply and Demand

1434 words - 6 pages the demand and supply of oil can cause prices to fluctuate. There is an unending international trade to ensure that we have a consistent supply of oil, and here has been a vast change in the price over the last century yet demand for it remains. Some of the most common reasons for changes in supply and demand in the oil market are availability, capacity of production, politics, and economics.Causes For shifts in supply and demandSupply, Demand and

Supply and Demand in UK Housing Market

2765 words - 11 pages /Price-History 15-02-09Source graph:http://enthusiasm.cozy.org/wp-content/uploads/2008/07/supply_and_demand.gif 15-02-09If demand remains high, more properties will tend to come into the market (Supply) and this will help to put a downward the pressure on prices, as is better shown in the graphics below.Figures for House Price Change, annual (%)Source:http://www.globalpropertyguide.com/Europe/United-Kingdom/Price-History 15-02-09Figures for Total

Supply and Demand in Real Estate

540 words - 3 pages months that means people's houses that are for sale are on the market longer than last year and that could mean that sellers may cut prices in order to sell their home.If there is a shortage (Excess Demand) consumers will pay the higher price for the home that is on the market for there is a limited supply of homes being sold. (O'Sullivan & Sheffrin, 2006) If you have a Surplus (Excess Supply) then you have a lot of homes on the market being

Supply and Demand Assignment

507 words - 2 pages how changes in price and/or quantity of various goods and services will affect either supply or demand and the equilibrium price. Use the graphs from the interactive activity as a tool to help you visualize the changes in price and quantity.If the price of a good increases, what happens to demand?The demand would decrease. The amount of decrease would be determined by the price elasticity of demand of the good.If the price of a good decreases

Supply and Demand Simulation

1205 words - 5 pages down, and likewise if the demand goes down the price goes up as long as all other things are constant. A shift in the demand curve indicates something is not constant. In the simulation, a company named Lintech expanded its operations to Atlantis. The expansion increased the population of Atlantis changes the demand for apartments, but does not change the supply of apartments in the area. The sudden shortage of apartments created a demand curve

Similar Essays

Gasoline Supply, Demand And Price Changes

662 words - 3 pages AbstractThis paper will show the association between the supply, demand, and price changes as a result of recent and past events. Hurricane Katrina and the War in Iraq have left our gasoline infrastructure at such a point that it was almost crippled. Political threats, though not direct to the supply can send ripples though gas prices. The need for change in American gasoline consumption will also be discussed as shown during the 4th of July

Summarize An Article On Supply And Demand And Explain Why Changes Occurred In Supply, Demand, And Price

889 words - 4 pages the United States cannot support the levels of oil and gasoline being consumed here puts the U.S. in a risky position. There is always a chance that our imported supply of oil and gas could be disrupted, which would also impact the cost of oil and gas. Therefore, in conclusion there are many volatile factors that impact our supply, demand, and price for oil and gasoline. However, at the end of the day oil and gasoline prices are a big

Explain Why Supply And Demand Curves Shift And How Shifts Cause Changes In The Market Price

1900 words - 8 pages supply and demand curve for a certain good or service. This occurs when there is perfect competition in a perfectly competitive market. This is where the market is large enough so that no one individual firm or individual has any appreciable influence on the price of the commodity. In monopolistic or oligopolistic competition this may not be the case, and the price of the good may be determined largely through the actions of one or several

Causes Of Changes In Supply And Demand

588 words - 2 pages market has two sides. The two sides are buyers and sellers. The demand side of the market are the buyer. The supply side of the market are the sellers. The relationship of supply and demand has a lot of influence on the price of tangible and intangible goods that are made and bought to satisfy the needs and desires of consumers in a society. Causes of Changes in Supply and Demand* *The causes of changes in supply and demand are people's