Question

In: Economics

Please research any topic regarding the concept of Supply and Demand...use an article or two that...

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

Solutions

Expert Solution

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


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