The Role of Expectations in Determining Demand and Supply
Order ID |
53563633773 |
Type |
Essay |
Writer Level |
Masters |
Style |
APA |
Sources/References |
4 |
Perfect Number of Pages to Order |
5-10 Pages |
Description/Paper Instructions
The Role of Expectations in Determining Demand and Supply
Expectations play a crucial role in determining demand and supply in any market. In economic terms, expectations refer to the beliefs held by consumers and producers about future market conditions, such as prices, availability of goods and services, and economic growth. These expectations influence the behavior of consumers and producers, affecting their buying and selling decisions, and, in turn, determining the equilibrium price and quantity in the market.
Demand and supply are the fundamental concepts that determine the price and quantity of goods and services exchanged in a market. The demand for a product is the amount of that product that consumers are willing and able to buy at a given price, while the supply of a product is the amount of that product that producers are willing and able to sell at a given price. The interaction between demand and supply determines the equilibrium price and quantity, where the quantity demanded equals the quantity supplied.
Expectations influence demand by affecting consumers’ willingness to pay for a product. When consumers expect the price of a product to increase in the future, they may be willing to pay a higher price for it today, leading to an increase in demand. For example, if consumers expect the price of gasoline to increase in the future, they may be willing to buy more gasoline today, leading to an increase in demand for gasoline. On the other hand, if consumers expect the price of a product to decrease in the future, they may delay their purchase, leading to a decrease in demand.
Expectations also influence supply by affecting producers’ willingness to produce a product. When producers expect the price of a product to increase in the future, they may be willing to increase their production today, leading to an increase in supply. For example, if producers expect the price of wheat to increase in the future, they may plant more wheat today, leading to an increase in the supply of wheat. On the other hand, if producers expect the price of a product to decrease in the future, they may reduce their production, leading to a decrease in supply.
In addition to price expectations, expectations about the availability of goods and services also influence demand and supply. For example, if consumers expect a product to be in short supply in the future, they may be willing to pay a higher price for it today, leading to an increase in demand. Conversely, if producers expect a product to be in abundant supply in the future, they may reduce their production today, leading to a decrease in supply.
Expectations about the overall state of the economy can also influence demand and supply. When consumers and producers expect the economy to grow, they may be more willing to spend and invest, leading to an increase in demand and supply. Conversely, when consumers and producers expect the economy to contract, they may be more hesitant to spend and invest, leading to a decrease in demand and supply.
In conclusion, expectations play a crucial role in determining demand and supply in any market. Price expectations, availability expectations, and economic expectations all influence the behavior of consumers and producers, affecting their buying and selling decisions, and, in turn, determining the equilibrium price and quantity in the market. It is important for policymakers and market participants to pay attention to expectations and their impact on market outcomes to make informed decisions about economic policies and investment strategies.
The Role of Expectations in Determining Demand and Supply
RUBRIC
QUALITY OF RESPONSE |
NO RESPONSE |
POOR / UNSATISFACTORY |
SATISFACTORY |
GOOD |
EXCELLENT |
Content (worth a maximum of 50% of the total points) |
Zero points: Student failed to submit the final paper. |
20 points out of 50: The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. |
30 points out of 50: The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately. Elements of the required response may also be lacking. |
40 points out of 50: The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples. The answer is complete. |
50 points: The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples. No aspects of the required answer are missing. |
Use of Sources (worth a maximum of 20% of the total points). |
Zero points: Student failed to include citations and/or references. Or the student failed to submit a final paper. |
5 out 20 points: Sources are seldom cited to support statements and/or format of citations are not recognizable as APA 6th Edition format. There are major errors in the formation of the references and citations. And/or there is a major reliance on highly questionable. The Student fails to provide an adequate synthesis of research collected for the paper. |
10 out 20 points: References to scholarly sources are occasionally given; many statements seem unsubstantiated. Frequent errors in APA 6th Edition format, leaving the reader confused about the source of the information. There are significant errors of the formation in the references and citations. And/or there is a significant use of highly questionable sources. |
15 out 20 points: Credible Scholarly sources are used effectively support claims and are, for the most part, clear and fairly represented. APA 6th Edition is used with only a few minor errors. There are minor errors in reference and/or citations. And/or there is some use of questionable sources. |
20 points: Credible scholarly sources are used to give compelling evidence to support claims and are clearly and fairly represented. APA 6th Edition format is used accurately and consistently. The student uses above the maximum required references in the development of the assignment. |
Grammar (worth maximum of 20% of total points) |
Zero points: Student failed to submit the final paper. |
5 points out of 20: The paper does not communicate ideas/points clearly due to inappropriate use of terminology and vague language; thoughts and sentences are disjointed or incomprehensible; organization lacking; and/or numerous grammatical, spelling/punctuation errors |
10 points out 20: The paper is often unclear and difficult to follow due to some inappropriate terminology and/or vague language; ideas may be fragmented, wandering and/or repetitive; poor organization; and/or some grammatical, spelling, punctuation errors |
15 points out of 20: The paper is mostly clear as a result of appropriate use of terminology and minimal vagueness; no tangents and no repetition; fairly good organization; almost perfect grammar, spelling, punctuation, and word usage. |
20 points: The paper is clear, concise, and a pleasure to read as a result of appropriate and precise use of terminology; total coherence of thoughts and presentation and logical organization; and the essay is error free. |
Structure of the Paper (worth 10% of total points) |
Zero points: Student failed to submit the final paper. |
3 points out of 10: Student needs to develop better formatting skills. The paper omits significant structural elements required for and APA 6th edition paper. Formatting of the paper has major flaws. The paper does not conform to APA 6th edition requirements whatsoever. |
5 points out of 10: Appearance of final paper demonstrates the student’s limited ability to format the paper. There are significant errors in formatting and/or the total omission of major components of an APA 6th edition paper. They can include the omission of the cover page, abstract, and page numbers. Additionally the page has major formatting issues with spacing or paragraph formation. Font size might not conform to size requirements. The student also significantly writes too large or too short of and paper |
7 points out of 10: Research paper presents an above-average use of formatting skills. The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment. |
10 points: Student provides a high-caliber, formatted paper. This includes an APA 6th edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally, the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper. |
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