Post 2 replies to classmates 175 words each. Be constructive and professional.
April Brown
Aggregate demand and supply were new terms for me but both things that I have understood, I just did not have a name for it. Aggregate demand is to me the essentials, and these are things that will be purchased at any price point but maybe depending on the circumstances will not be purchased in high quantities. Price matters but if it is something that you need, it will be purchased at any price. When I think of this, I think of insulin, this is something that is needed for people to live and if demand is high and supply is low, people will spend whatever that need to in order to get it.
Aggregate supply is the amount of goods that suppliers are willing to sell based off of the current state of the economy at a given price. For example, we all need socks, but we can hold off on buying them if the price is too high at the moment. In this case, the supplier will adjust the price to get rid of inventory.
There are four sources as it relates to aggregate demand which include consumption, investment, government spending, and net exports. The formula used to calculate this is: AD = C + I + G + (X ? M). This means Aggregate Demand equals to consumption plus investment and government spending along with the calculated value of net exports. During the pandemic, companies were forced to adjust at a rapid rate to ensure that they could continue to produce and make money. Some of the products that were mandatory were cleaning products such as Lysol, sanitizer, masks, plastic dividers and much more. Because everyone else needed these things at the same time, it made it difficult to produce these goods and get them to everyone and it took a larger workforce to produce what was needed. Because of the increase in demand, the cost for products increased. In addition to this, some companies were not able to get what they needed so they in some cases had to adjust by producing things themselves or pass their increased operating costs on to their customers.
Emily Grieco
Aggregate supply and demand are the accumulation of different metrics to messier demand and need for supply in an economy.
in my personal experience, used to own an online business where I would resale shoes and other accessories. I had to always be one step ahead of the needs of the public to make sore I was stocked up on the things they would be needed. One way I had to be mindful of the demand was the different reasons in the year, different holidays, and fashion trends. Another way was stocking up on things that were hard to find and desirable. Around 2008 or 2009 when the recession started, w head to be mindful not to invest in fashion shoes and had to move to functioning and useful shoes such as steel toe shoes, work boots, anti slip shoes, and the like. We needed to sell to people who were trying to work and needed specific items for less money.
Being able to adapt to the changing needs of the public is imperative for the survival of a small business
