Bus 508 the Business Enterprise week 3 Assignment 1

Week 3: Assignment 1

BUS 508: The Business Enterprise

Professor N. Nayak

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

The supply of the pies is based on the demand-the idea that if the price of doing something goes up, then people will want to consume less of it, and vice versa. The 'something' has to be good and not bad. Weeds will constantly go up in supply and continue to grow, but nobody wants them, and therefore the supply means nothing. The quantity demanded equals the quantity supplied. In the case of Mrs. Acres Homemade Pies, the supply of pies will increase because the number of consumers has increased, therefore increasing demand. The price of the product will stay the...