Business Ethics
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ECONOMICS AND ETHICAL ISSUES
SHEMIKA LOCKETT
PROFESSOR JANET DURGIN
BUS 508
THE BUSINESS ENTERPRISE
JULY 18, 2010
Economics and Ethical Issues
Given the business situation of Mrs. Acres Homemade Pies and using the economic concepts of supply and demand, explain
* Discuss what you think will happen to the supply, demand and price of the product in the short-term;
* Discuss what you think will happen to the supply, demand and price of the product in the long-term.
* Explain why you think supply, demand or equilibrium price will be different, if at all¸ in the short-term and long-term.
I want to begin sharing my findings with the definition of supply and demand. Supply is defined as the number of products, goods and services that businesses are willing to sell at different prices at a specific time (McGraw-Hill p. 13). Demand is the number of goods and services that consumers are willing to buy at different prices at a specific time (McGraw-Hill p.13). Mrs. Acres Homemade Pies started out successful which caused an increase in demand for the product. In the short-term, the supply of the product can be increased to meet the demand. Shelly had already taken the necessary steps to meet the rising demand of her product, by expanding operations and borrowing money in order to increase her staff. In order to meet the increasing demand in the short-term, Shelly could consider another expansion and find the financial means to increase her staff so she will be able to keep up the supply of the product. I think the price of Shelly’s pies will increase in the short-term, causing the demand for her product to either decrease or remain the same.
The supply of the product in the long-term will increase if Shelly is able to find the financial resources necessary to expand and keep up with the production of the product. With expansion, the price of the product will increase in order for the company to continue making a profit. Demand...
SHEMIKA LOCKETT
PROFESSOR JANET DURGIN
BUS 508
THE BUSINESS ENTERPRISE
JULY 18, 2010
Economics and Ethical Issues
Given the business situation of Mrs. Acres Homemade Pies and using the economic concepts of supply and demand, explain
* Discuss what you think will happen to the supply, demand and price of the product in the short-term;
* Discuss what you think will happen to the supply, demand and price of the product in the long-term.
* Explain why you think supply, demand or equilibrium price will be different, if at all¸ in the short-term and long-term.
I want to begin sharing my findings with the definition of supply and demand. Supply is defined as the number of products, goods and services that businesses are willing to sell at different prices at a specific time (McGraw-Hill p. 13). Demand is the number of goods and services that consumers are willing to buy at different prices at a specific time (McGraw-Hill p.13). Mrs. Acres Homemade Pies started out successful which caused an increase in demand for the product. In the short-term, the supply of the product can be increased to meet the demand. Shelly had already taken the necessary steps to meet the rising demand of her product, by expanding operations and borrowing money in order to increase her staff. In order to meet the increasing demand in the short-term, Shelly could consider another expansion and find the financial means to increase her staff so she will be able to keep up the supply of the product. I think the price of Shelly’s pies will increase in the short-term, causing the demand for her product to either decrease or remain the same.
The supply of the product in the long-term will increase if Shelly is able to find the financial resources necessary to expand and keep up with the production of the product. With expansion, the price of the product will increase in order for the company to continue making a profit. Demand...