In: Economics
Please research any topic regarding the concept of Supply and Demand...use an article or two that is not older than 2 years old. Provide the link(s) and write one summation paragraph and four analytical paragraphs outlining how you align the material we have studied thus far to the what product or service you have researched. Be sure to include reference to the circular flow model, the invisible hand of competition and how suppliers and consumers have determined the success or failure of the product or service. This is a total of 5 paragraphs (7 to 8 sentences in each paragraph) at minimum and requires you to provide any links
ANSWER.......
In this we are saying about the economic forecast
2018-2019:-
In this we are saying about the demand is strong but supply is
weak
by using two types of graphs methods:-1)summation paragraph
2)analytical paragraph
1)summation paragraph:-
This article is about the weakness of supply of demanded goods.
Goods are demanded highly but the supply of such good are not as in
proportion of the demand increases which leads to the rise in
prices which invites inflation in the country.
The reason behind the weak supply is lower labour force and
resulting lower productivity. If every person and every machine is
working flat out, then increased demand would not increases
output.
If the demand is increasing to support such demand the supply would
also must be increase by using new technology, IT advancement,
using robots and by employing more manpower.
2)Analytical paragraphs:-
The current labor force and the productivity level is not suitable
for the current increasing demand. There are two drivers of output
one is labor force and productivity.
Because of lower supply GDP of current year is 1.7% which is much
lower than we expected in forecast i.e. 2.7%.
The invisible hands of competition is labor force and productivity
which act as unobservable market force which affects the
supply.
The employment / population ratio is increasing at the same rate as
in the 2011-2017 period. Even though there is decrease in the
unemployment rate by four percent the productivity has not been
increased.
Average hours worked per worker has no long term trend, it is a
temperory adjustment factor which does not contribute in the
productivity. So the decrease in unemployment is useless as it is
not contributed to the productivity.
Availability of jobs put people of out of there woodwork. But many
people work through discouragement, family challenges when a good
job is available. Greater labor force alone will not get the job
done.
To increase the economic growth there is need to add another 5
million workers in the next two years.Producers can determine the
success of the product by increasing growth of productivity and
output per worker.
These two forces can expand the supply potential of the economy. As
the rising wages and easy availability of jobs will draw more
people into the labor force. Companies will also buy more equipment
and software to substitute for people they cannot hire.
Supply limitation may inhibit economic growth or supply
improvements may take longer to evolve.
note:-
1) In above answer we include 1 summation para of the article and
other four are explaination of the article
2) The invisible hand of competition concept is included in the 1st
para of analytical section
3) how suppliers determined the success of production is explain in
the last para.
This is a total of 5 paragraphs (7 to 8 sentences in each
paragraph) at minimum and requires link is:-
link of article :
https://seekingalpha.com/article/4184408-economic-forecast-2018minus-2019-demand-strong-supply-weak