This Is It Essay

676 Words Sep 8th, 2015 3 Pages
Business 115: Week 1 Assignment
Devry University
John Riccardi

The economic system that would be best suited for handling a crisis of epic proportion would be the socialism system. With the socialism system, the government plays a major role, as the government would be the ones to dispense the proper resources that the residents need, “ from food to health care”, to assure everyone gets the assistance.
If we look back at the 2010 earthquake that took place in Haiti, the socialist system would be the best by using the socialist system, responding to the needs of the residents who were struck by this devastating earthquake, no matter what, everyone would get the proper aid and support that is needed.
Fortunately, for the residents
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This is also known as the equilibrium price. This is where the supply curve and the demand curve meet in the middle. Factoring in the quantity that is needed and the price for the heat. (Bovee, Thill)
With that being said, our heat prices go up in the winter because the supply for heat is low for the amount of people that need to use it and the demand is so high because we need the heat at a certain temperature to keep our bodies warm and to be able to live. If you notice in the summer time your heating bill is low, this is because the demand for heat during the summer time is at a minimum, due to the fact that the temperatures are higher in the summer. The only thing that rises in the summer time is our electric bill.
With the weather being so unpredictable at times, it could be hard on the heating companies to come up with a fair price for the heat in the wintertime. The demand for heat could be so high in a certain winter and the supply may be to low. So in this scenario, the heating company may have to go above the equilibrium price. If this were to happen, then the consumer would have to pay more money for heat then they wanted too or expected.

References:

Bovee, C and Thill, J (2013). Business In Action: 6th Edition

Law of Supply and Demand. Investopedia (2014).
Retrieved from

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