Price - Revision history

Jmdonev: 1 revision imported

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Energy>Jmdonev at 20:56, 16 January 2020

2020-01-16T20:56:12Z

← Older revision		Revision as of 20:56, 16 January 2020
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	[[Category:Done ~~2016~~-04-30]]		[[Category:Done 2020-01-31]]
	[[File:gas pump.jpg\|400px\|thumb\|right\|Figure 1. A standard gas pump at a gas station.<ref>Wikimedia Commons. [Online], Available: Public Domain, https://commons.wikimedia.org/w/index.php?curid=187277 [Aug 17, 2016]</ref> The charged price for gasoline includes many taxes and production costs.]]		[[File:gas pump.jpg\|400px\|thumb\|right\|Figure 1. A standard gas pump at a gas station.<ref>Wikimedia Commons. [Online], Available: Public Domain, https://commons.wikimedia.org/w/index.php?curid=187277 [Aug 17, 2016]</ref> The charged price for gasoline includes many taxes and production costs.]]

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	==~~See Also~~==		==For Further Reading==
	*[[Supply]]		*[[Supply]]
	*[[Demand]]		*[[Demand]]
	*[[Market]]		*[[Market]]
	*[[Market force]]		*[[Market force]]
			*Or explore a [[Special:Random\|random page]]

	==References==		==References==
	{{reflist}}		{{reflist}}
			[[Category: Uploaded]]

Jmdonev at 06:36, 29 December 2018

2018-12-29T06:36:05Z

@@ Line 1: / Line 1: @@
-[[category: Jason edit]]
+[[Category:Done 2016-04-30]]
-'''Put text below images for large screen, maybe 3-4 lines of text. - Jason'''
+[[File:gas pump.jpg|400px|thumb|right|Figure 1. A standard gas pump at a gas station.<ref>Wikimedia Commons. [Online], Available: Public Domain, https://commons.wikimedia.org/w/index.php?curid=187277 [Aug 17, 2016]</ref> The charged price for gasoline includes many taxes and production costs.]]
-'''Add ?useskin=energyeducationnew to end and zoom out to test it out'''
+==Price at the Pump==
-<html>
+=Market Forces and Their Effect on Price=
-<script>
+[[Supply]] and [[demand]] are two primary variables that affect the price of a good or service.
-This resource is being used as a textbook to teach a number of courses. If you'd like your own set of pages please [[Special:Contact|contact us]] and we'll work with you to set up chapters for your course as well.
+==Supply==
-The following are the chapters for the [https://www.ucalgary.ca/ University of Calgary's] Physics 371 course, Introduction to Energy:
+==Demand==
-*[[Energy_Education:Chapter_1|Chapter 1]]: Planet Earth is an energy system
+[[File:Price- Demand-2.png|450px|thumb|right|Figure 3. The effects of demand fluctuations on the price in a market. <ref>Created internally by a member of the Energy Education team</ref>]]
-*[[Energy_Education:Chapter_2|Chapter 2]]: Harnessing energy improves our quality of life
+Just as the supply for a good or service can influence the price that is paid for consumers, the demand for the good can influence the price. The level of scarcity also affects the demand for a good (depending on what type of [[goods and services | good]] it is, the more scares a good is, the more demand there is:
-[[category: Process page not to be moved]]
+==Quick Reference Table==

Jmdonev at 06:35, 29 December 2018

2018-12-29T06:35:46Z

@@ Line 1: / Line 1: @@
-[[Category:Done 2016-04-30]]
+[[category: Jason edit]]
-[[File:gas pump.jpg|400px|thumb|right|Figure 1. A standard gas pump at a gas station.<ref>Wikimedia Commons. [Online], Available: Public Domain, https://commons.wikimedia.org/w/index.php?curid=187277 [Aug 17, 2016]</ref> The charged price for gasoline includes many taxes and production costs.]]
+'''Put text below images for large screen, maybe 3-4 lines of text. - Jason'''
-==Price at the Pump==
+'''Add ?useskin=energyeducationnew to end and zoom out to test it out'''
-=Market Forces and Their Effect on Price=
+<html>
-[[Supply]] and [[demand]] are two primary variables that affect the price of a good or service.
+<script>
-==Supply==
+This resource is being used as a textbook to teach a number of courses. If you'd like your own set of pages please [[Special:Contact|contact us]] and we'll work with you to set up chapters for your course as well.
-==Demand==
+The following are the chapters for the [https://www.ucalgary.ca/ University of Calgary's] Physics 371 course, Introduction to Energy:
-[[File:Price- Demand-2.png|450px|thumb|right|Figure 3. The effects of demand fluctuations on the price in a market. <ref>Created internally by a member of the Energy Education team</ref>]]
+*[[Energy_Education:Chapter_1|Chapter 1]]: Planet Earth is an energy system
-Just as the supply for a good or service can influence the price that is paid for consumers, the demand for the good can influence the price. The level of scarcity also affects the demand for a good (depending on what type of [[goods and services | good]] it is, the more scares a good is, the more demand there is:
+*[[Energy_Education:Chapter_2|Chapter 2]]: Harnessing energy improves our quality of life
-==Quick Reference Table==
+[[category: Process page not to be moved]]

Jmdonev: 1 revision imported: From the summer

2016-09-17T22:29:53Z

1 revision imported: From the summer

← Older revision	Revision as of 22:29, 17 September 2016
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Jmdonev at 18:56, 4 September 2016

2016-09-04T18:56:42Z

New page

[[Category:Done 2016-04-30]]
[[File:gas pump.jpg|400px|thumb|right|Figure 1. A standard gas pump at a gas station.<ref>Wikimedia Commons. [Online], Available: Public Domain, https://commons.wikimedia.org/w/index.php?curid=187277 [Aug 17, 2016]</ref> The charged price for gasoline includes many taxes and production costs.]]

<onlyinclude>The '''price''' of a good or service is the amount of [[currency | money]] that is paid to obtain it.</onlyinclude><ref>J.Black, N. Hashimzade, and G. Myles. (2009) "." [Online], Available: http://www.oxfordreference.com/view/10.1093/acref/9780199237043.001.0001/acref-9780199237043-e-2415?rskey=GnOu2R&result=1, 2009 [Aug 27, 2016]</ref> This is different from [[cost]], which is the [[value]] of resources used to achieve an end. Cost includes the values other than money (like time), price is specifically the money paid. Interactions within the [[market]] determine the price of a good or service. In addition to [[market force]]s, production costs, [[tax]]es and other variables have an effect on the price of [[goods and services|good or service]].

==Price at the Pump==
Figure 1 shows a standard [[gasoline pump]]. Many factors go into determining the price that a consumer pays at the pump. Assume that a [[litre]] of [[gasoline]] costs $0.30 to produce, the firm that sells the gasoline wants to make a profit so they increase the price of the gasoline to $0.80. Beyond the cost of producing the gasoline, the firm needs to make profit to pay the owners of the firm (either private or shareholders). In addition to the markup by the firm, both provincial and federal [[tax]]es apply to the sale of every litre of gasoline. These taxes are $0.10 and $0.07 respectively, they increase the price of the litre to $0.97. Overtime a consumer puts gas in their vehicle, they pay for the cost of producing the gas, the profit taken by the firm and the taxes that flow to the government.

The firm that produces and sells the gasoline receives $0.80 for the litre and remits the tax amounts to the government on behalf of the consumer. The $0.80 that the firm receives is the '''total [[revenue]]''' for the litre meaning the amount of money that they received from the consumer. Of that $0.80, $0.50 is [[profit]] to the firm that will be given to the owners, the other $0.30 is the cost that it took to produce the gasoline.<ref>Investopedia. "Profit." [Online], Available: http://www.investopedia.com/terms/p/profit.asp[Aug 28, 2016].</ref>

=Market Forces and Their Effect on Price=
[[Supply]] and [[demand]] are two primary variables that affect the price of a good or service.

==Supply==
[[File:Price.png|450px|thumb|right|Figure 2. The effects of supply fluctuations on the price in a market. <ref>Created internally by a member of the Energy Education team</ref>]]
In a market for a good or service, the [[supply]] of the good or service helps determine its price depending on how much of the good is available for consumers to buy. The more there is the less it is valued, the less there is, the more its valued. This is called [[scarcity]], the price of a good is partly determined by how scarce a good is.
Figure 2 illustrates changes in the level of supply and how they affect the price of a good:
*At '''Point A''' the market price of a good is '''P1''' and the quantity supplied to the market is '''Q1'''.
*If the supply to the market is increased and the demand ('''D''') for the good stays the same then the price for the good will fall. The price falls because the same number of people are buying the same amount of the good but it is less scarce.<ref>M. Parkin and R. Bade. ''Economics: Canada in the Global Environment''. Toronto: Pearson, 2013, pp. 64.</ref><ref name=Goo>A. Goolsbee, S. Levitt and C. Syverson. ''Microeconomics''. New York: Worth Publishers, 2013, pp. 34.</ref>
*'''Point B''' illustrates the increase in supply ('''S1''' to '''S2'''), the quantity supplied has risen from '''Q1''' to '''Q2''' and the price for the good has fallen from '''P1''' to '''P2'''.
*If the supply to the market is reduced and the demand for the good stays the same then the price for the good will rise. The price rises because the same number of people are buying a smaller amount of the good than before.
*'''Point C''' illustrates the reduction in supply ('''S1''' to '''S3'''), the quantity supplied has fallen from '''Q1''' to '''Q3''' and the price for the good has risen from '''P1''' to '''P3'''.

==Demand==
[[File:Price- Demand-2.png|450px|thumb|right|Figure 3. The effects of demand fluctuations on the price in a market. <ref>Created internally by a member of the Energy Education team</ref>]]
Just as the supply for a good or service can influence the price that is paid for consumers, the demand for the good can influence the price. The level of scarcity also affects the demand for a good (depending on what type of [[goods and services | good]] it is, the more scares a good is, the more demand there is:

Figure 3 illustrates changes in the level of demand and how they affect the price of a good:
*At '''Point A''' the market the price of a good is '''P1''' and the quantity supplied to the market is '''Q1'''.
*If the demand in the market for the good is increased and the supply for the good stays the same then the price for the good will rise. The price rises because consumers are buying a larger amount of the good than before, more of the good is supplied to the market to cope with the increased demand.<ref>M. Parkin and R. Bade. ''Economics: Canada in the Global Environment''. pp. 68.</ref><ref name=Goo/>
*'''Point B''' illustrates the increase in demand ('''D1''' to '''D2'''), the quantity supplied has risen from '''Q1''' to '''Q2''' and the price for the good has also risen from '''P1''' to '''P2'''.
*If the demand in the market is reduced and the demand for the good stays the same then the price for the good will fall. The price falls because consumers are buying a smaller amount of the good than before, firms adjust the quantity sold to reflect the lower demand.
*'''Point C''' illustrates the reduction in demand ('''D1''' to '''D3'''), the quantity supplied has fallen from '''Q1''' to '''Q3''' and the price for the good has also fallen from '''P1''' to '''P3'''.

==Quick Reference Table==

This table is a quick reference guide to show how the price and quantity of a good or service in a market react to changes in the demand and supply:<ref name=Goo/>

::::::::{| class="wikitable"
|-
! Curve That Shifts (S or D) !! Shift Direction !! Price (P) !! Quantity (Q)
|-
| rowspan="2" | '''Demand Curve (D)''' || Right (Increase) || style="text-align: center;" | ↑ || style="text-align: center;" | ↑
|-
| Left (Decrease) || style="text-align: center;" | ↓ || style="text-align: center;" | ↓
|-
| rowspan="2" | '''Supply Curve (S)''' || Right (Increase) || style="text-align: center;" | ↓ || style="text-align: center;" | ↑
|-
| Left (Decrease) || style="text-align: center;" | ↑ || style="text-align: center;" | ↓
|-
|}

==See Also==
*[[Supply]]
*[[Demand]]
*[[Market]]
*[[Market force]]

==References==
{{reflist}}