Gordon rule assignment for macro economics

Statement of the author’s goals

The author aimed at explaining what demand is. They used various ways to explain the concept. Demand refers to the number of products that customers are willing to be at a given price. Customers demand more products when the price is low and demand less when the price is high. When sellers realize that buyers are buying a particular product in large quantities, they hike the price. Consequently, they lower prices when the product is not experiencing high demand. The author wanted people to understand how demand controls the prices of commodities in the market.

  Demand and supply are related. Supply is the quantity of commodities that suppliers are willing to take to the market at a given price. Supply is high when the price is high and is low when the price is low. As for the demand curve, the price against the quantity demanded is plotted. Price is on the vertical axis, while the quantity demanded is on the horizontal axis. Demand curve slopes from left to right downwards. The steeper the slope, the higher the price, and the low the quantity demanded. The equilibrium price is achieved when the supply and demand curve intersect.

My verdict

The writer was able to achieve their objectives. They were aiming at explaining what market demand is and how it influences the price. Besides, they also aimed at elaborating on how businesses spend a lot of money on monitoring the rate at which customers are buying their products in the market. Such information helps to adjust where necessary. I concur with the fact that demand determines the price at which commodities are sold in the market.

My opinion

I like the article since it was very informative. The author had in-depth knowledge of the topic and explained concepts well. Thus, i would recommend the article o someone else to read because I feel that it added value to me. The author had a good grasp of grammar, and the information was flowing.

Reference

Hugon A & Muslu V.(2010). “Market demand for conservative analysts.” Journal of accounting and economics.50 (1).42-57.