quantity

Examples of quantity in the following topics:

• Dimensional Analysis

  • The dimension of a physical quantity indicates how it relates to one of the seven basic quantities.
  • These fundamental quantities are:
  • This is often used to represent the dimension of individual basic quantity.
  • The dimensions of derived quantities may include few or all dimensions in individual basic quantities.
  • In turn, velocity is also a derived quantity, being ratio of length and time.

• Supply Schedules and Supply Curves

  • A supply schedule is a table that shows the relationship between the price of a good and the quantity supplied.
  • One can use the supply schedule to do this: for a given price, find the corresponding quantity supplied for each individual supply schedule and then sum these quantities to provide a group or aggregate supply.
  • Plotting the summation of individual quantities per each price will produce an aggregate supply curve.
  • The supply curve provides one side of the price-to-quantity relationship that ensures a functional market.
  • Explain the price to quantity relationship exhibited in the supply curve

• Optimal Quantity of a Public Good

  • The government is providing an efficient quantity of a public good when its marginal benefit equals its marginal cost.
  • To determine the optimal quantity of a public good, it is necessary to first determine the demand for it.
  • Demand for public goods is represented through price-quantity schedules, which show the price someone is willing to pay for the extra unit of each possible quantity.
  • As a result, the market demand curve for public goods gives the price society is willing to pay for a given quantity.
  • The optimal quantity of public good occurs where MB = MC.

• Economic Order Quantity Technique

  • Economic order quantity is the order quantity that minimizes total inventory holding costs and ordering costs: ${ Q }^{ * }=\left( \frac { 2DS }{ H } \right) ^{ \frac { 1 }{ 2 } }$.
  • Economic order quantity is the order quantity that minimizes total inventory holding costs and ordering costs.
  • Variables for the function are: Q = order quantity, Q*= optimal order quantity, D = annual demand quantity, S = fixed cost per order (not per unit, typically cost of ordering and shipping and handling.
  • Purchase cost: This is the variable cost of goods: purchase unit price × annual demand quantity.
  • Holding cost: the average quantity in stock (between fully replenished and empty) is Q/2, so this cost is H × Q/2.

• The Law of Supply

  • The law of supply states that there is a positive relationship between the quantity that suppliers are willing to sell and the price level.
  • It states that an increase in price will result in an increase in the quantity supplied, all else held constant.
  • As the price of a good or service increases, the quantity that suppliers are willing to produce increases and this relationship is captured as a movement along the supply curve to a higher price and quantity combination.
  • The law of supply in conjunction with the law of demand forms the basis for market conditions resulting in a price and quantity relationship at which both the price to quantity relationship of suppliers and demanders (consumers) are equal.
  • As the market price of a good increases, suppliers of the good will typically seek to increase the quantity supplied to the market.

• Causes of the bullwhip effect and counteracting the bullwhip effect

  • Order batching occurs when each member takes order quantities it receives from its downstream customer and rounds up or down to suit production constraints such as equipment setup times or truckload quantities.
  • The more members who conduct such rounding of order quantities, the more distortion occurs of the original quantities that were demanded.
  • Price fluctuations due to inflationary factors, quantity discounts, or sales tend to encourage customers to buy larger quantities than they require.
  • This behavior tends to add variability to quantities ordered and uncertainty to forecasts.
  • Such actions remove price as a variable in determining order quantities.

• Market Adjustment to Change

  • A decrease in demand will cause both the equilibrium price and quantity to fall.
  • A change in the price of the good changes the quantity supplied.
  • An increase in supply will push the market price down and quantity up while an increase in demand will push both market price and quantity up.
  • However, the decrease in demand reduces the equilibrium quantity while the increase in supply pushes the equilibrium quantity up.
  • The price must fall, the quantity may rise , fall or remain the same.

• Demand for Public Goods

  • They also have a fixed market quantity: everyone in society must agree on consuming the same amount of the good.
  • However, each individual's willingness to pay for the quantity provided may be different.
  • The individual demand curves show the price someone is willing to pay for an extra unit of each possible quantity of the public good.
  • The aggregate demand for a public good is the sum of marginal benefits to each person at each quantity of the good provided .
  • The efficient quantity of a public good is the quantity that maximizes net benefit (total benefit minus total cost), which is the same as the quantity at which marginal benefit equals marginal cost.

• Introduction to Scalars and Vectors

  • Given this information, is speed a scalar or a vector quantity?
  • Speed is a scalar quantity.
  • Displacement is an example of a vector quantity.
  • Distance is an example of a scalar quantity.
  • A vector is any quantity with both magnitude and direction.

• Macroeconomic Equilibrium

  • In a competitive market, the unit price for a good will vary until it settles at a point where the quantity demanded equals the quantity supplied.
  • If quantity demand increases and supply remains unchanged, a shortage occurs, leading to a higher price until the quantity demanded is pushed back to equilibrium.
  • If quantity demand decreases and supply remains unchanged, a surplus occurs, leading to a lower price until the quantity demanded is pushed back to equilibrium.
  • If quantity demand remains unchanged and supply increases, a surplus occurs, leading to a lower price until the quantity supplied is pushed back to equilibrium.
  • Equilibrium is the price-quantity pair where the quantity demanded is equal to the quantity supplied.