Price Setting
Market Price (Equilibrium Price) for a particular good or service is affected by both the supply and the demand of it. As the demand (quantity desired) increases, so does the price of the item. As the price (what people will pay) increases, so does the supply of the good or service. Think ... more people want to make to get in on the money making. Here is your task:
- Choose a product with a price that has fluctuated significantly (changed a lot).
- Specify the price change in dollars (both current and past price).
- Define the time period over which the price changed.
- List your references. (Where did you find the info?)
- Your good or service must be unique (nobody else has already commented on it) for full credit.
- Write a brief explanation of why you think the price changed.
- Label your answers. See Mr. Turton's example and tips below.
- Good - three-quarter-inch plywood
- Time Period - 22 months
- Source - http://www.sptimes.com/2004/04/14/Business/Wood_prices_could_boo.shtml
- Reason - The price increased as demand increased due to rebuilding related to the war in Iraq and natural disasters like Katrina.
- Open a blank Word document to collect your info.
- Copy your info and paste it into the Word document. Save it - just in case.
- Format it like my example above.
- Copy your info.
- Open the comment box in the blog.
- Choose Edit - Paste from the Toolbar.
- Add your name and Publish the Comment.
posted by Mr. Turton at 3/31/2006 10:45:00 AM
12 Comments:
Good: Gasoline
Price in 1930: $0.04 per gallon
Price in 2006: $2.36 per gallon
Difference: $2.32
Time period: 76 years
Sources: apiep.api.org/filelibrary/ www.nacsonline.com/.../
With the war in Iraq, gasoline and oil supplies are becoming more valuable. The government has to pay more each barrel therefore they have to sell them for a greater amount of money. The “gas stations” also need to make a profit, so the “up” the price a little bit more.
Good- crude oil
1946- $1.37
2006-$58.38
Time- 60 years
Source-
http://www.ioga.com/Special/crudeoil_Hist.htm and http://news.bbc.co.uk/1/hi/business/3708951.stm
Reason- The price of crude oil has dramatically increased because the United States demand has risen, because of the strengthening economic recovery and the greater need for higher-grade crude oil suitable for processing into petrol (gasoline) for the fuel9hungry Sports Utility Vehicles most popular with United States drivers.
Good: Crude Oil
Price in 1972: $3.00 per barrel
Price in 1974: $12.00 per barrel
Difference: $9.00
Time Period: 2 years
Sources: http://www.wtrg.com/prices.htm
Good: Crude Oil
Price in 1972: $3.00 per barrel
Price in 1974: $12.00 per barrel
Difference: $9.00
Time Period: 2 years
Sources: http://www.wtrg.com/prices.htm
The reason with crude oil was because of an attack
The United States and many countries in the western world showed strong support for Israel. As a result of this support several Arab exporting nations imposed an embargo on the countries supporting Israel. Arab nations curtailed production by 5 million barrels per day about 1 MMBPD was made up by increased production in other countries
good: gas
price in march, 2006:about $2.75
price in april, 2006:about $3.26
Difference: .51
time period:30 days
sources: matt strasser brain and eyes
Bush likes money. Bush likes oil. gas stations like oil but not bush, i dont either.
Good: Gasoline
Price in 1955: $0.55
Price in 2006: $2.99
Difference: $2.44
Time period: 51 years
Source www.gasbuddy.com
When the war happend in 2001 everthing kept on going up and up and it has been a war with the pricing. Iraq is hurting us the most because they are the main gas suppliers in the United States of America. Since that we are in a war with them they can raise the gas prices and they can the people in the USA.
Good: Gasoline
Price in 1925:$0.02 per gallon
Price in 2006:$2.92 per gallon
Difference:$2.89
Total years: 81 years
www.nationalgasbuddy.com
Good - copper
Past Price - about $0.90 per lb.
Present Price - about $3.60 per lb.
Time Period - 5 years
References - http://www.kitcometals.com/charts/copper_historical.html
I think that the price of copper went up because of the hurricanes that we have been having and causing prices to increase. Also, because of the war we have to pay for it which is by uping the price of almost everthing.
march 2006 $2.69
april 2006 $3. 15
difference 0.46
time length 30 days
Item Gasoline
now there are many reasons the price went up but my own idea reson is because the middle east is mad at america because of what we started in the middle east.
Product- digital cameras
Price in 1994- $880.00
Average price in 2006-$300.00
Time period-12 years
This price has changed over the years because since everyone now has digitl cameras, they dont sell at a high price as much as they used to.
http://inventors.about.com/library/inventors/bldigitalcamera.htm
Good: Harry Potter and the Half Blood Prince (Book 6)
Price in June 2005:$29.99
Price in June 2006:$15.79
Difference:$14.20
Time Period:1 Year
Sources: http://www.walmart.com/catalog/search-ng.gsp?search_constraint=3920&search_query=Harry+Potter&ic=20_0
The book isn't worth as much any more because many people have bought and already read the book. Very few people are buying it anymore and are now waiting for the next one.
Good: aluminum
1956: $0.15 a pound
2006: $1.12 a pound
Difference: $0.97
Time Period: 50 Years
http://minerals.usgs.gov/minerals/pubs/commodity/aluminum/050798.pdf
The reason why aluminum was so cheap in 1950's and in years of great wars was because it was cheaper than the rest of materials, so it was bought more. The price has incresed since then because of the war in Iraq and because of rrecycling and the need for it.
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