Combining supply and demand

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This document summarizes the concepts of supply and demand economics, including: 1) Equilibrium is reached at the price where quantity supplied equals quantity demanded. This is shown as the point where the supply and demand curves intersect on a graph. 2) Disequilibrium occurs when quantity supplied does not equal quantity demanded, resulting in either excess demand or excess supply. 3) Excess demand happens when demand is greater than supply, which can be resolved by suppliers raising prices to encourage less demand. Excess supply is when supply exceeds demand, which may lead to lower prices to boost demand.

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Sheet1Quantity (miles of pipeline)Total CostTotal Fixed CostTotal Variable CostAverage Fixed CostAverage Variable CostMarginal Cost0$ 5,000$ 5,0001,000$ 11,5732,000$ 18,2083,000$ 29,2674,000$ 44,7505,000$ 64,6576,000$ 88,9877,000$ 117,7408,000$ 150,9189,000$ 188,51810,000$ 230,54311,000$ 276,99112,000$ 327,86313,000$ 383,15914,000$ 442,87815,000$ 507,02116,000$ 575,58717,000$ 648,57718,000$ 725,99119,000$ 807,82820,000$ 894,08921,000$ 984,77422,000$ 1,079,88223,000$ 1,179,41424,000$ 1,283,37025,000$ 1,391,74926,000$ 1,504,55227,000$ 1,621,77828,000$ 1,743,42929,000$ 1,869,50230,000$ 2,000,000 Week 4 Will Fence owns a 70-acre large timber and Christmas tree farm. The Christmas farm gets busy in August and September when Will identifies and flags the trees suitable for Christmas season. Starting in October, the flagged trees will be cut, baled, and trucked to the storage yard where they will stay until shipped. The storage yard is situated in an area that offers shade and protection from the wind to maintain the freshness of the tree. The trees are stacked with the tops locked together to keep the sun and wind away from them. Will has just purchased an additional 40 acres and will need to expand his storage yard by 40,000 square feet. The budget for this expansion is $55,000. Will has hired your team to design a process to contract resources to expand the storage yard. Cover the following as requested by Will: · Description of the contract resource procurement process (from start to closure). · Explanation of how the contract resources procurement process that was described will assist Will in negotiating the best purchase. · Explanation to Will why the team believes the process is efficient and achieves the results desired. · Identification of any risks associated with procuring these resources and explanation of the role of risk management in this process. · Explanation of how the process may be improved upon. · Other recommendations the team may have for Will to consider. Graphing Supply and Demand Supply and demand are so important for both consumers and producers because both of these concepts work together to determine the overall price of an item, as well as the total quantity sold in a market. To see how this works, we can show both on a graph such as you see in the header image above. Remember that demand is a relationship between price and the quantity that consumers are willing and able to pay. This is an inverse, or negative, relationship, in which the variable's price and quantity move in opposite directions. This would be depicted as a downward sloping curve on a graph. Similarly, supply is a relationship between the price of an item and the quantity that producers are willing to supply. This is a direct, or positive, relationship, in which the variable's price and quantity move in the same direction. This would be depicted as an u.

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