Kevin Chung
Alex Kang
Dorene Navarro
Carol Oh
Jessica Perez
Period 7
3.12.2014
Supply & Demand: The Munchie Pill Law of Supply:
According to the law of supply, as the price for our Munchie Pill increases, so will the quantity of Munchie Pills will also increase, as we are attempting to maximizing our profits by increasing the amount of boxes of pills we can sell.
Law of Demand:
According to the law of demand, as the price for our Munchie Pill increases, the demand for the product will decrease, since the consumers’ opportunity cost and trade off costs will be higher. Law of Supply & Demand:
In appliance with the law of demand & supply, if the price for our Munchie Pill was high, that would be because our supply is low and the demand is high, but if the price for our Munchie
Pill was low,that would be because our supply is high and the demand is low.
Individual vs. Market Demand:
The quantity demanded of a particular good or service varies from individual to individual. The individual demand would refer to the quantity demanded by an individual at any given price. To figure out the market demand, all the quantity demands of each individual are added together horizontally at all prices. Then we can analyze how the market demand varies as the price varies while all other factors are held constant. With the data of the market demand, we

can create a market demand schedule which also helps create the market demand graph. The market demand graph shows what price students at Whitney are willing to pay for certain amounts of the Munchie Pill.
Individual vs. Market Supply:
Individual supply and market supply are similar to that of demand. Individual supply is the amount of supply of a seller. The market supply is the sum of all the supplies of all the sellers of a certain good or service. In market supply at Whitney, we are the sole sellers of the Munchie
Pill, so our individual supply graph is also our market supply graph. From the graph, we can analyze how the quantity supplied varies as the price of the Munchie Pill varies.
Factors that can influence Demand:
There are six factors that can influence demand: price, prices of related goods, income, consumer tastes, expectations, and the number of buyers. If the price of your good is too high, less people will actually be willing to buy the product. If the price is low but still enough to actually make a profit, more people will be willing to buy your good. This also relates greatly with the prices of your competition’s goods. If your product is more expensive than other related goods, less people will be willing to spend more on your good, which they can find for cheaper elsewhere, and vice versa. Income is also a huge contributor to demand because it works both for consumers and owners. If the owner of the product receives less income than before, they won’t have much money to spend on increasing the amount of goods available. Also, if the amount of income in the country as a whole decreases, less people will have the money needed to spend on goods and the demand would most likely decrease as well unless it’s an inferior good. If the tastes of consumers change, the demand changes in response with it. If the consumers like it,

they will want more and vice versa. If the consumers expect the price of the good to fall soon, they will wait in order to purchase it at a better deal. If there is an increase in the number of buyers, the demand curve would shift to the right and the quantity demanded would also increase at every price.
Factors that influence Supply:
There are five factors that can influence supply: price, input prices, technology, expectations, and the number of sellers. There is a positive relationship between the price of the good and the quantity supplied. So if the price of the good were to increase, the production of goods becomes more profitable and the quantity increases. If the cost of input were to