Bus 508 Assignment 1 Economics and Ethical Issues

BUS 508: The Business Enterprise

1. Discuss what you think will happen to the supply, demand, and price of the product in the short-term.

Since the demand for the pie is high, the price of the pie will go up. Also, since more people are willing to pay for it. The demand and supply for the pie will go up also, simply because the people want them and the price is what they can afford to pay for it. Consequently, the rise in price prompt more pies to be supplied as supply relationship shows that the higher price, the higher the quantity supplied (Ferrell, O.C., Hirt, G., & Ferrell, L. (2009). Producers supply more at a higher price and selling a higher quantity at higher price increases revenue (McConnell, C., & Bruce, S. (2008).

1. Discuss...