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The law of demand and it

For this paper I will focus on the demand side of Supply and Demand. The “law of demand” states that, all other variables remaining the same, the higher the price, the less the quantity demanded. So as the prices change because of a change in supply for a commodity, buyers will change the quantity they demand of that item. For example, if the price drops, a larger quantity will be demanded and if the price rises, a lesser quantity will be demanded.

Any example of decreased price leads to movement down the demand curve when there is an increase in quantity demanded. The increased price leads to movement up the demand curve, and a decrease in quantity demanded. The following are some factors that would cause the demand curve to shift and they are as follow: a change in the population of buyers, greater desire for the commodity, higher incomes (assum


ing a normal good), lower incomes (assuming an inferior good), an increased price of substitutes, a decreased price of complements, and an expectation of higher future prices. This increased demand will show as a shift of the entire demand curve to the right. The reverse of all the above will lead to decreased demand and will show as a shift of the entire demand curve to the left.

Article: “Software – Will Outsourcing Hurt America’s Supremacy”

The article mentioned above takes a look at the current trend of many US companies towards the outsourcing of high tech jobs such as computer programmers, to the of countries India, China, and several eastern block countries. The article evaluates the various positions of the Information technology (IT) process and the effect outsourcing has had on the demands for those higher priced US IT employees and e

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Approximate Word count = 582
Approximate Pages = 2 (250 words per page double spaced)


  

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