The Basics Supply and Demand

The Basics Supply and Demand Supply and Demand analysis is relatively straightforward once the terminology is understood. The important terms are as follows: PriceQuantityDemand and Demand CurveQuantity DemandedSupply and Supply CurveQuantity SuppliedEquilibriumSurplusShortage Basic supply and demand analysis is done one of two ways - either graphically or numerically. If done graphically, it is important to set up the graph in the standard form. The Graph Traditionally economists have placed price (P) on the Y-axis and quantity (Q), as in quantity consumed or quantity purchased/sold on the X-axis. An easy way to remember how to label each axis is to remember P then Q, since the price (P) label occurs above and to the left of the quantity (Q) label. Next, there are two curves to understand - the demand curve and the supply curve. The Demand Curve A demand curve is simply a demand function or demand schedule represented graphically. Note that demand is not simply a number - it is a one-to-one relationship between prices and quantities. The following is an example of a demand schedule: Demand Schedule $10 - 200 units$20 - 145 units$30 - 110 units$40 - 100 unitsNote that demand is not simply a number such as 145. The quantity level associated with a particular price (such as 145 units $20) is known as a quantity demanded.A more detailed description of the demand curve can be found at: The Economics of Demand. The Supply Curve Supply curves, supply functions, and supply schedules are not conceptually different than their demand counterparts. Once again, supply is never represented as a number. When considering the problem from the point of view of the seller the quantity level associated with a particular price is known as quantity supplied. A more detailed description of the supply curve can be found at: The Economics of Supply. Equilibrium Equilibrium occurs when at a specific price P, quantity demanded quantity supplied. In other words, if there is some price where the amount buyers wish to buy is the same as the amount sellers wish to sell, then equilibrium occurs. Consider the following demand and supply schedules: Demand Schedule $10 - 200 units$20 - 145 units$30 - 110 units$40 - 100 units Supply Schedule $10 - 100 units$20 - 145 units$30 - 180 units$40 - 200 unitsAt a price of $20, consumers wish to purchase 145 units and sellers which to provide 145 units. Thus quantity supplied quantity demanded and we have an equilibrium of ($20, 145 units) Surplus A surplus, from the supply and demand perspective, is a situation where, at the current price, quantity supplied exceeds quantity demanded. Consider the demand and supply schedules above. At a price of $30, quantity supplied is 180 units and quantity demanded is 110 units, leading to a surplus of 70 units (180-11070). Our market, then, is out of equilibrium. The current price is unsustainable and must be lowered in order for the market to reach equilibrium. Shortage A shortage is simply the flip-side of a surplus. It is a situation where, at the current price, quantity demanded exceeds quantity supplied. At a price of $10, quantity supplied is 100 units and quantity demanded is 200 units, leading to a shortage of 100 units (200-100100). Our market, then, is out of equilibrium. The current price is unsustainable and must be raised in order for the market to reach equilibrium.Now you know the basics of supply and demand. Have additional questions? I can be reached via the feedback form.

Choose the Best Time to Study for Finals

Choose the Best Time to Study for Finals With finals coming up in just a couple weeks, a lot of students start planning their studying schedules. However, theres an important factor to take into consideration when making a plan: when do you study best? Youve heard of â€Å"morning† and â€Å"night† people, right? Some people simply function better in the morning than at night while others struggle to get out of bed in the morning but have no problem burning the midnight oil. Each individual has times during the day when their brain is more alert and theyre able to assimilate and process information as well as create and produce. Trying to push through during the other hours can not only be unproductive, it can also be counter-productive. Thats because the study session wont have been successful, leading to burn-out and discouragement. Finding out the best time to study can help you make the most of your limited time during finals season. Why It Matters During Finals During finals period, this concept is particularly relevant. By identifying when youre most alert, you can plan a study schedule that allows you to maximize your productivity. You can choose to rest or do other activities during your less productive hours to make sure you can make the most out of your â€Å"on† time. How To Identify Your Most Productive Time Most people have an instinct for when theyre most productive. If you tend to be bright and ready for the day in the morning but hit a slump after lunch, and tend to knock off early, falling asleep while reading at 9p.m., you can assume that mornings are your best time. If mornings are tough for you and you generally need a landslide of caffeine to get you moving, slowly working your way up to speed as the day wears on and peaking at night after dinner, then your nights will be your most productive times. Some people have slow mornings and early nights but tend to burst with energy in the afternoons. In that case, your most productive time will be during the afternoon. Of course, the best way to be sure is to test this theory out. Choose to study in the morning, afternoon and night and see which one works best for you. If you have the chance to give this a test drive before the finals season hits, it could really help you make the most out of your study time. How Can You Maximize Your Productive Hours? Once you discover your best working time, you should find ways to guard that precious time. Eliminate or at least limit your distractions as much as possible. A quiet, isolated place to study would be ideal so you dont run the risk of friends or family members interrupting you. Turning off phones or putting them on silent or vibrate is also a helpful way to keep distractions to a minimum. Dont tempt yourself with social media during these hours, either. Leave that for another time. Create a Pattern If you can create and stick to a schedule, it will be even more beneficial to your productivity. Adhering to a specific plan every day helps trigger the brain into â€Å"work mode† when its time for serious studying and can enhance your productivity even more. The more consistent you are, the better your work sessions will be. Dont just be consistent with your work, though. Being consistent with the things you do outside of your studying hours is also important. Exercise, eating, and sleeping routines also help keep the brain and body in top running condition. Many successful writers keep consistent schedules. Acclaimed author Haruki Murakami keeps a rigorous schedule of waking at 4am, writing for five or six hours, running or swimming or both and then reading and listening to music. Bed-time is 9:00pm. He describes this process of bringing himself into a kind of a trance with a repetitive pattern that he can rely on every day. Whichever time of day is best for your studies, make sure to get the most out of it by limiting distractions and making the most of your â€Å"off† time as well.