How to analyze a supply and demand problem

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Reference no: EM13755465

Part 1:

Choose one of the following events and discuss the economic impact on the market for surfboards in Southern California.

You can use the following documents to help you complete the Discussion Board Assignment (Note: You do not need to include the graphs in your Discussion post):

1."How to analyze a supply and demand problem"

2."Discussion Graphs"

Southern California experiences unusually high temperatures, sending an unusually large number of people to its beaches.

a.The weather and ocean wave patterns in Southern California have become very suitable for surfing.

b.Large sharks are reported feeding near the beaches of Southern California.

c.There is a significant increase in the price of epoxy paint used to coat surfboards.

Part 2:

Thinking of the recreational activity that you most enjoy, can you describe some similar economic event that has resulted in a supply and demand impact?

1. The epoxy paint is an input the production process associated with the surfboards. Therefore, with the increase in the price of an input, suppliers constrain output holding demand constant. What data/information will the epoxy paint producer going to use to decide to increase output?

2 "Any time there is a great white in the water, there is a potential danger, and so we want people to be aware of it." People are not usually in any danger. The demand for deep sea diving and fishing would decrease during these times. The price of fish could also increase because of the scarcity. I love to fish and I have always wanted to go deep sea fishing. I have chosen, "Sharks are reported feeding near the beaches of Southern California." During this time the demand for fishing equipment is high in fresh and saltwater. In the fall the demand will lower, because with the cold weather fishes feed less.

3. The weather and ocean wave patterns in Southern California have become very suitable for surfing because of the unusually high temperatures. These high temperatures can affect storms brought on in the ocean. These storms will affect the wind which is what makes the swells that surfers are so fond of. Surfers will continue to flock to these swells as long as the winds from the storms keep producing them.

4. Southern California issues warnings whenever there are sharks spotted in the shallow waters. Sharks come to the shallow water to birth their young (Huffington Post, 2010). During these times, the National Park Service works to keep people out of the water where sharks have been located.

Because officials are discouraging people to enter the water, during these times when share are having their you, it could cause a reduced demand because those looking buy their first board or replacement board may wait until they are able to go back into the water.

5. I chose to explore the economic impact that unusually high temperatures in southern California would have on the market for surf boards. To begin this analysis we need to determine what effect this change would have on the supply and demand curves of surfboards. First, lets examine the demand curve. When temperatures increase more people are interested in going to beach to cool off in the water. A certain percentage of these people will choose surfing as the best means to achieve this cooling effect, and will therefore need to purchase surf boards.

Reference no: EM13755465

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