Spreadsheet analysis provides good means for studying demand and supply and their effect of changes in various endogenous and exogenous variables. The supply and demand related factors within a firm’s control are referred to as endogenous variables. Variables that can hardly be controlled by the firm’s management are referred to as exogenous variables. Exogenous variables would include pricing of products, advertising, strategies, and other factors the firm has the power to manage their control. The exogenous variables include pricing abilities of competitors, advertising strategies of competitors, and industrial or market factors hardly within the firm’s management. Comparative statistics can be used to analyze the marginal influence on the supply and demand of changes in various factors. Spreadsheet analysis helps in understanding the implication of demand and supply in operating scenarios within a limitless range.
The unlikely outcomes can be established with ease and a complete picture of the operating environment for the firm could be established as well. A firm working on its demand and supply and establishing the various ways the two market phenomena can influence its endogenous and exogenous factors sets strong strategies for responding to the factors. A hypothetical case on Sunbest Orange Juice can be used in providing illustration for this process. Sunbest Orange Juice is a product of the Orange County Growers’ Association of California. The demand and supply for this firm’s products move in the opposite direction during various seasons. The demand for orange juice is high during summer while the supply for the same product is low during the same season.
Effect of Demand and Supply by Various Factors
The demand and supply factors are sensitive to weather. Weather in this case is an exogenous variable because the firm has no control of changes in weather patterns. The demand for sunbest orange juice is highest in hot summer months. When the summer season is approaching, demand for the firm’s products increases rapidly as an increased number of customers demand more orange juice for various reasons. The summer season is characterized by hot and dry weather, which has an adverse effect on the production of oranges. This situation creates a low yield thus making the supply of oranges low. The implication in this case is that hot and dry weather favors demand and centrally to this, supply of the same product is decreased. The situation creates an imbalance between supply and demand. The summer season would therefore be described as a season with low supply of Orange Juice products and high demand in the same juice products. The market situation is that of excess demand and inadequate supply. This case of a market has to undergo a situation of restoring the demand and supply equilibrium. Given the demand and supply functions, it is possible to establish the equilibrium quantity and equilibrium price that would restore the market equilibrium. The demand equation for the sunbest orange juice is given as Qd = 1,000,000 – 25,000,000P + 10 000 000s + 1,600Y + 50,000T. The Supply equation Qs = 8,000,000P – 100,000Pl – 120,000P – 150,000T. The equations make use of price as the major determinant of supply and demand. Supply of sunbest orange price is mainly influenced by weather conditions besides the pricing of the orange juice product. Prices influence the quantity of supply of orange juice from the demand side. The price is increased by the effect of demand being high. The aspect of high demands makes prices to increase. This factor in turn makes the suppliers of demand strive to produce more orange fruits irrespective of the severe weather conditions.
The equations are built on various variables including pricing factors in both average wholesale price for each case of sunbest and the canned soda average price. The demand would decrease with respect to an increase in the average prices. Another factor affecting the demand of demand for sunbest orange juice products is the disposable income of the consumers of the products. Consumers would demand more of the sunbest orange juice when their deposable income levels are high. This would be to a certain point beyond which their disposable income would create a substitution effect in a way that the consumer would wish to combine the consumption of this product and other close substitutes. Disposable income is the income of a consumer after all deductions have been removed. The demand of sunbest juice products is positively by all factors apart from the average price of each case of sunbest orange juice. The variable in the equation is given a negative sign because high prices of each case of sunbest orange juice would lead to low demand while low prices of the juice product would lead to more of the juice being demanded. Canned soda in this case acts like a close substitute. The demand of sunbest orange juice products increases when the price of canned soda increases because as the price of canned soda increases, consumers find it expensive and substitute canned soda for sunbest orange juice products. Close substitutes thus acts in a way that their low demand would lead to an increased demand of the corresponding substitute. High temperatures generate a positive impact on the demand for sunbest orange juice products. It turns out that as the temperatures increase, people demand more of the products than when temperatures are low.
The supply of sunbest orange juice products is influenced by the commodity’s average wholesale price, the price of unskilled labor in its production process in terms of average prices and the risk adjustment capital cost in average. Temperatures as an external condition also influences the quantity supplied of the sunbest orange juice products. The effect of price of the subset orange juice product is positive. The positive impact of prices arises due to motivational effect of producers of the products. Producers of Sunbest Orange Juice would be motivated to increase their production by the high market prices for the product. Producers would increase their production to gain more profits due to the high market prices. The effect is opposite when the market prices of Sunbest Orange Juice products are low. Producer would be discouraged by the low prices and thereby cut their production. In the aspect of average price for unskilled labor, high prices would increase the cost of production in a way that would make producers opt to cut down their production. Producers would increase their production when unskilled labor is cheap. Cheap unskilled labor would generate a higher profit margin than the use of high priced unskilled labor. This aspect implies that the price of labor and production are inversely related. The risk-adjusted cost of capital is another factor that is inversely related to production of sunbest orange juice product. Producers and suppliers of sunbest orange juice products tent to shy off from their production and supply process given the high percentage cost in risk adjustment of capital. Producers would also decrease their production when the temperatures in the environment are high. Temperature decreases the yielding capacity of orange crops.
Given different optimistic values in the case of each variable, the demand and supply quantities can be calculated based on different scenarios.
| Environment for Demand | P | Ps | Y | T |
| Optimistic scenario 1 | 6 | 5 | 67500 | 81.25 |
| 2 | 5.8 | 4.9 | 66500 | 81 |
| 3 | 5.6 | 4.8 | 65500 | 80.75 |
| 4 | 5.4 | 4.7 | 64500 | 80.5 |
| 5 | 5.2 | 4.6 | 63500 | 80.25 |
| 6 | 5 | 4.5 | 62500 | 80 |
| 7 | 4.8 | 4.4 | 61500 | 79.75 |
| 8 | 4.6 | 4.3 | 60500 | 79.5 |
| 9 | 4.4 | 4.2 | 59500 | 79.25 |
| 10 | 4.2 | 4.1 | 58500 | 79 |
The demand in the first scenario would be given as follows:
Qd = 1000000–25,000,000P + 10 000 000s + 1,600Y + 50,000T
Qd = 1000000 – 25000000*6 + 10000000*5 + 1,600*67500 + 50,000*81.25
=-3,674,522,470,937,500
Scenario 2: Qd = 1000000 – 25000000*5.8 + 10000000*4.9 + 1,600*66500 + 50,000*81.00
=-3,410,076,797,550,000
Scenario 3
Qd = 1000000 – 25000000*5.6 + 10000000*4.8 + 1,600*65500 + 50,000*80.75
= -3,158,233,853,362,500
Scenario 4
Qd = 1000000 – 25000000*5.4+ 10000000*4.7 + 1,600*64500 + 50,000*80.50
=-2,918,659,258,375,000
Scenario 5
Qd = 1000000 – 25000000*5.2+ 10000000*4.6 + 1,600*63500 + 50,000*80.25
=-2,691,021,512,587,500
Scenario 6
Qd = 1000000 – 25000000*5.0+ 10000000*4.5 + 1,600*62500 + 50,000*80.00
=-2,474,991,996,000,000
Scenario 7
Qd = 1000000 – 25000000*4.8+ 10000000*4.4 + 1,600*61500 + 50,000*79.75
=-2,284,281,096,212,500
Scenario 8
Qd = 1000000 – 25000000*4.6+ 10000000*4.3 + 1,600*60500 + 50,000*79.50
=-2,076,457,570,425,000
Scenario 9
Qd = 1000000 – 25000000*4.4+ 10000000*4.2 + 1,600*59500 + 50,000*79.25
=2,376,556,548,562,500
Scenario 10
Qd = 1000000 – 25000000*4.2+ 10000000*4.1 + 1,600*58500 + 50,000*79.00
=-1,720,484,621,650,000
Recommendations
From the analysis, the optimum level of demand is at scenario 9. In this scenario, demand will be highest with a combination of all a factors having different values. At this level, the price of sunbest orange juice would $4.4, the price of soda at $4.2, disposable income of $59500, and temperate level of 79.25. Any change of one variable in this case would result to lower demand. Producers should increase their production at this point where temperatures are at neither the highest point nor the lowest point.
Get Professional Assignment Help Cheaply
Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?
Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.
Why Choose Our Academic Writing Service?
- Plagiarism free papers
- Timely delivery
- Any deadline
- Skilled, Experienced Native English Writers
- Subject-relevant academic writer
- Adherence to paper instructions
- Ability to tackle bulk assignments
- Reasonable prices
- 24/7 Customer Support
- Get superb grades consistently
Online Academic Help With Different Subjects
Literature
Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.
Finance
Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.
Computer science
Computer science is a tough subject. Fortunately, our computer science experts are up to the match. No need to stress and have sleepless nights. Our academic writers will tackle all your computer science assignments and deliver them on time. Let us handle all your python, java, ruby, JavaScript, php , C+ assignments!
Psychology
While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.
Engineering
Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.
Nursing
In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.
Sociology
Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.
Business
We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!
Statistics
We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.
Law
Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.
What discipline/subjects do you deal in?
We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.
Are your writers competent enough to handle my paper?
Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.
What if I don’t like the paper?
There is a very low likelihood that you won’t like the paper.
Reasons being:
- When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
- We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.
In the event that you don’t like your paper:
- The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
- We will have a different writer write the paper from scratch.
- Last resort, if the above does not work, we will refund your money.
Will the professor find out I didn’t write the paper myself?
Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.
What if the paper is plagiarized?
We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.
When will I get my paper?
You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.
Will anyone find out that I used your services?
We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.
How our Assignment Help Service Works
1. Place an order
You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.
2. Pay for the order
Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.
3. Track the progress
You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.
4. Download the paper
The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.
PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET A PERFECT SCORE!!!
