Essays on Demand

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Problem 1 Opportunity Cost - Define the term “Opportunity Cost” Opportunity cost is the value of the foregone mutually exclusive alternatives. When choice are to be made between several mutually exclusive alternatives in terms of decision making, opportunity cost is the value of alternative that is forgone due to selection of some other alternatives. Generally, opportunity cost is the value of next best alternative that can be achieved with same input. For example: George had $2 in his pocket which is enough to buy either a cup of tea or a cup of coffee. Among ...

According to Shaun and Gottret (2004), the residual curve refers to the individual demand curve of a firm that is the part of the market demand which is not provided by other competing firms in the market. It can, therefore, be defined as the market demand function after it has been subtracted from the quantity supplied by other competing firms at each price. Suppose the market demand is D (p) and the supply provided by the other firms is S o (p), then there are several ways to calculate the demand for the firm. The first one is by expressing the relationship ...

The microeconomic theory

The identified microeconomic theory was the consumer demand theory. The consumer demand theory falls under the branch of economics that deals with the study of consumer behaviors applying to decisions related to purchase of goods and services in the market. The theory provides a deep insight into understanding market demand and forms the cornerstone of the modern microeconomics (Salvatore, 2002).

Properties and characteristics of the theory

The consumer demand theory generally analyzes consumer behavior in terms of market purchases that are based on satisfaction of needs and wants achieved after consuming a product. The main property of the theory is utility maximization. Economists are most interested in ...

Fundamentals of Economics, Globe Business

A) Elasticity of demand refers to the sensitivity of the demand for a product to a change in price. It is measured as a ratio of the change of the quantity demanded to the change in price (Demand elasticity).

Cross-price elasticity of demand measures the sensitivity of the quantity demanded of one good to the change in price change for another good. Negative cross-price elasticity indicates that the two goods are complements, therefore they are usually consumed together and a decrease/increase in the price for one will increase/decrease the quantity demanded of the other. Positive cross-price elasticity suggests that the products are ...

A. Define the following three terms:

Elasticity of demand This refers to the degree to which the demand for a commodity varies with the variation in its price. In normal circumstances, the reduction in price of a good or service results in an increased demand for that particular commodity (Hoxie 2010). It also refers to the responsiveness of demand for a commodity as a result of changes in its price.

Cross-price elasticity

This measures the rate at which the quantity of a product demanded responds to the changes in the price of another related good. For instance, if the price of a product increases, the demand for the substitutes to this good ...

Abstract.

The paper discusses the two widely known concepts of economic and how they are of importance to both the consumer and the producer. The various factors that cause them have also been analyzed in a detailed way as well as their effect in the market. Graphical representations have been incorporated in order to enhance clarity of the theoretical discussion.

Introduction.

In economics and particularly microeconomics these two terms are used extensively. Demand refers to the quantity demanded by consumers at one point in the market and they are able and willing to pay for them at a given market price, supply on ...

Demand refers to the quantity of a commodity a consumer is willing to purchase under different conditions. The demand for a commodity depends on a number of factors like the price of the commodity, income of the consumer, the price of substitute commodities, the price of complements, the preference for the good by the consumers, fashion trends, seasonality, and such others. Therefore, the demand function can be written as: QD = F(P, Y, PS, PC, T, O)

Where, QD: Quantity demanded

P: Price of the commodity PS: Price of the Substitute commodity PC: Price of the complementary commodity T: Consumers’ tastes and preferences ...

Introduction

For numerous decades, oil has been an important source of the commercial energy throughout the world. The oil industry has always been a vitally crucial industry due to its contribution to the global economy. For this reason, oil is in high demand at all times. Just like the other commodities, the price of oil is determined by the market forces of supply and demand. The oil price fluctuations greatly affect the national economies differently. For instance, while the net exporters of oil suffer economically when the prices decline, the economies of the net importers benefit. Consequently, as one of the ...

Definition of Terms

Elasticity of demand: The elasticity of demand measures the degree of change in the quantity demanded after a change in any one of the factors affecting demand (Gregory, 2011).

Cross-price elasticity: This is the measure of degree of responsiveness of quantity demanded of one good due to change in price of another good (William et.al, 2011). In the case of complimentary goods, the cut in price of one of the goods raises the demand of the other good. For substitutes, an increase in price of one good will lead to an increase in demand of the other good.

Income elasticity: ...

Summary of the Article

The article discusses the importance of price elasticity of demand level in the economy in determining tax imposed on tobacco. A household survey conducted in the UK reveals that a whopping 10.2 million of the population were cigarette consumers in 2007. Policy makers are showing increasing focus on promoting public health and attempting to discourage tobacco consumption by imposing stringent tax on tobacco. Tax on tobacco has been increased considerably in the last decade in order to reduce the number of tobacco consumers in the country. However, the effectiveness of higher tax on tobacco will be determined by price elasticity ...

Following the American Psychological Association’s Guidelines

Educational Institution SUPPLY AND DEMAND FOR PLAYSTATION 4 Sony’s Playstation 4 (PS4), sold at $400 during its launch in 2013, was a massive hit with its 4.2 million units sold at the end of the year (Forbes, 2014). Sony’s PS4 outsold its closest competitor, Microsoft’s Xbox which also launched that year by a margin of about 1.2 million units at a higher retail price of $500 () .In this exercise, we look at this product and analyze the demand and supply dynamics revolving it.

Demand and Supply Schedule

We draw a hypothetic schedule and demand for the PS4, as follows. Then we map ...

BUSINESS BEHAVIOUR AND THE MARKET ENVIRONMENT

Part I

This exercise deals with the analysis of the potential economic impact on the activities of the selected “plant as a present” retailer on the UK market that the case will refer to as the company. Current economic crisis put pressure on the company profitability and the management considers expanding its operation in terms of variety to leverage the challenges of the domestic economy. The aim of this analysis is to outline core scenarios of the company development through basic supply and demand modeling and look at the best options in regards to financing their expansion strategy.

The UK Market Environment and Price Sensitivity

Current economic ...

A) Elasticity of demand can be defined as the sensitivity of demand to a change in price and it is calculated as a difference in the quantity demanded divided by the difference in price. Cross-price elasticity is the measure of responsiveness of the quantity demanded of a product to the change in price of another one. Complements, the products that are usually consumed together, have negative cross-price elasticity. Substitute goods, on the other hand, have positive cross-price elasticity, since consumers can easily replace one for the other. Income elasticity is the degree of responsiveness of the quantity demanded to the change in ...

Introduction

Economists most often use elasticity to measure the variation of variables like price, demand and supply of certain categories of products. By managers having the knowledge about the price elasticity of demand for the company’s products and the factors which influence it, this will offer them a great competitive advantage and this will lead to increased profits and market share (Genchev & Yarkov, 2010). Price elasticity of demand is defined as a measure of the rate of response of the quantity demanded due to a change in price. The formula to calculate this is: give as Price elasticity of demand = Proportionate ...

The world has been migrating from the analogue era to the digital era for the last couple of years. In the digital era, electronics are very essential components and hence their demand has increased. The number of electronics manufacturers has consistently increased over the years, and the level of production has surpassed the growing demand. Lenovo has been affected by the situation and therefore the company needs to take keen note on the demand and supply concepts.

Price determination using demand and supply curves

The price of any product should be derived from the demand and supply curves. The place at which the two curves intersect ...

Introduction

Domino pizza is a well known brand based in United States where it has a wider reach in operations. The business is the subject of this analysis where demand analysis and forecasting is used to evaluate the suitability of the business venturing in Bowie, MD. The analysis is done by collecting market data on the independent and dependent variables, calculating the regression models and the coefficient of determination whose interpretation together with the test for the regression and the variables are used as a basis of the decision. The analysis also forecasts the market demand for pizza in the region for the ...

Law of Demand and supply

Introduction In economics, the law of demand and supply is one of the essential theories governing an economy. The theory of demand and supply determines price, accessibility, and the demand for a given service or product. Demand definition is the willingness of consumers to purchase a certain good or service in the market. The cost of the service or good reflects the consumer’s buying decision. The demand for an item is high when its price is lower than other supplementary goods. The curve of demand theory slopes downward due to the inverse relationship.

Alternatively, supply is the willingness of a ...

This paper analyzes the effects of certain events on the price and quantity of milk, considering that other factors are constant and equal. The analysis includes information about changes in quantity supplied and quantity demanded, and shifts in the demand curve and the supple curve. Analyzed events appear as subheadings throughout the paper. - A scientific study shows that consumption of milk is beneficial for healthy bones First of all, let us analyze the effect that this event would have on the quantity demanded of milk on the market. According the law of demand, quantity demanded of a ...

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Introduction

Economics is a fundamental field that has its own recognition and importance in every walk of life. The term economics are generally referred as the stance of earning and consumption at a place where, the probability of earning would be higher than consumption. The study of economics signifies that how a person, company or government can manage their insufficient resources in order to meet their unlimited desires. However, the economics are segmented into two groups that are microeconomics and macroeconomics. The focus of Microeconomics is usually stridden on individual consumer through examining the behavioral elements ...

Response to question A

Elasticity of demand is the responsiveness of the demand of a good to changes in other economic variables (Ferguson, 1972). As such, elasticity of demand is important since it helps to determine the potential change in demand due to variation in prices. Elastic demand occurs when the demand of a product changes with respond to price. In Elastic demand is when the demand curve doesn`t respond to change in prices. The response of the consumer is large compared to price change. Unit elastic demand occurs when the absolute value of elasticity equals 1.

Response to question B

Cross price elasticity of demand is the ...

Instituion

According to the findings from the activity given in class, figure 1 shows a curve representing the relationship between price and demand of goods/services. Onces the slider is moved towards the upper side, the price of the the goods/services tend to raise, while the values of the demand tend to go down. On the other hand, once the slider is moved towards the lower ,end, the price of the good/servuces tend to go down, while the values of the demand tends to go upwards. In the world of economics, this is referred to as the demand curve. It depicts ...

Origin and Development

The terminology, bullwhip effect, originates from the reality, according to which a light motion of the handle of a bullwhip can results in making the tip of the belt flay wildly at speed more than 800 miles per hour, about 20 percent quicker than speed of sound, producing a sonic boom. One of the major issues occurred at the time of implementation of supply chain is Bullwhip effect. Bullwhip effect was firstly announced by Procter and Gamble Company (Gundlach and Murphy, 2000). Bullwhip effect refers to the increase in inconsistency of orders as one goes up a supply chain. The Bullwhip effect can ...

Abstract

This paper explores such questions as the determinants of demand and supply for coffee and what factors can lead to a change in equilibrium price and quantity. The availability of substitutes for this good is considered. The price elasticity of demand for coffee and the determinants for it are described. At the end of the paper the way of increasing revenue through a change in price is chosen, whether to increase the price to receive more in payment for each unit, or to decrease price to attract more consumers to switch to buying the good.

Demand and supply are two meanings ...

Introduction

The issue with blood donation in Canada, as well as around the world, is that the supply of blood peaks during times of crisis when the need for blood is at the forefront of the public’s attention. This often outpaces the demand and goes to waste due to the small shelf life of blood. There is a steady demand for blood donation year-round and is often under-supplied. Should Canada use a monetary incentive to improve the supply and demand imbalance for blood donation?Blood Donation In Canada Canadian Blood Services (CBS) looks after the blood donation efforts within all Canadian provinces. ...

Demand and Supply

Introduction The paper aims to answer four questions quoted here pertaining to demand and supply of oil and how it is driving the oil prices.

Question 1: How do changes in supply and demand affect oil prices?

Answer: Changes in supply and demand of oil significantly affect oil prices around the world, which is discussed in this section.

Effect of Demand on Oil Prices:

Oil demand is directly correlated with its price, other things remaining constant. The recent trend is such that increase in world over oil demand is putting upward pressure on its price. Globalisation, trade liberalisation and economic growth have resulted in higher oil demand. To a great extent, this growth is being support by ...

Question 1:

(a) Suppose the income elasticity of demand for furniture is 3 and the income elasticity for doctors' services is 0.3. Compare the impact on furniture and doctors services of a recession that reduced consumer incomes by 10 per cent. (2 marks)

Change in income = 10% = 0.1

Income elasticity of demand = change in quantity demanded/ change in income

Therefore: change in quantity demanded = Income elasticity of demand × change in income

Impact of recession on furniture:

Change in quantity demanded = 3 × 0.1= 0.3 = 30%

A change of 10% in consumer income will result in a 30% change in quantity demanded of furniture.

Impact of ...

Abstract

The paper dwells on general equilibrium theory by putting into perspective various critical issues. The origin of the concept of general equilibrium theory is illuminated dating back to neoclassical period. Moreover, various models such as Walras model of pricing and modern equilibrium model is also put into consideration. Finally, the importance and application of general equilibrium has also been discussed at length. General equilibrium theory refers to a concept modeled around theoretical economics. The modern general equilibrium takes into consideration three important interpretations which should be taken into consideration. The idea of general equilibrium theory cannot be complete when there ...

Introduction

If it is ask about one single field that has recognition with almost every walk of life, then the name of Economics will be reflecting on the screen. After Adam Smith and Alfred Marshall, who directed the most important definition of the term economics, there are numerous authors who found a clear relationship among the economic based functions, and its core impact over the economic consequences of an economy (Banerjee and Duflo, p.45). Earning and consuming the money in a best possible manner and with a sigh of effectiveness is the most important aspect of economics, in fact the main definition ...

Introduction

Food and beverages that sustain humankind are the driving force of human life. All human activities are directed towards getting food to eat and beverages to drink so as to live a healthy and happy life. As human civilization grows and develops, the need for more food and beverages increases and at the same time, the need to know about the quality and content enhances. The need for more food and beverages increases with the constantly growing human population. Hence, the food security is a great concern. Also, the increased awareness about health and happiness, the food security assumes added significance ( ...

Introduction

In a market, the price is determined when the forces of supply and demand interact. The market price that results from this interaction remains dependent on supply and demand. Goods or services only change hands once the seller and buyer come to terms on the price. Once they agree on a given price, that price is known as the “equilibrium price.” Changes in supply and demand result in changes of the market equilibrium price for a particular product. This paper presents the concept of demand, supply, equilibrium and four factors that may lead to a change in market equilibrium for beefsteak. Figure ...

Introduction

Economic consequences are extremely essential for the sake of an economy, as it is the only thing through which the power of economics of a country will get appreciation and upper hand in the market (Angermuller, Maingueneau & Wodak, 2014). Escalating stock market recognition, increasing economic power, Gross Domestic Product and Per Capita Income are some of the important aspects that found interactive and effective in the entire field of economics and management (Angermuller, Maingueneau & Wodak, 2014). In terms of significance, the subject of economics has its diversification in different themes that will be considered accordingly in the picture. The ...

Introduction

Economy experiences macroeconomic fluctuations over time that affects economic growth. The aggregate output, consumption, investment, net export, and employment may tend to grow over time but then drop suddenly. Economists continue to discern the current condition of the economy and where it is heading so that they can effectively deal with future economic events. Macroeconomic fluctuations mainly involve changes that occur in the demand-side of the economy, which determine the gross domestic product. GDP= C+I+G+NX Gross domestic product is never constant, but change due to many reasons like changes in government policies mainly in ...

The Cause of Rental Price Increase in San Francisco Bay Area

Rental Price Increase in San Francisco Bay Area Introduction Moving to a new place normally means finding the most comfortable yet the most cost friendly apartment in the neighborhood as near as possible to the place of work. However, the first thing that comes into question in the moving-in process is the price of the rent that one should cut from his monthly paycheck. Cost of rent is a major concern in the San Francisco Bay area due to its staggering price. It became an apparent issue when apartment hunters are faced with over-the-top rental rates in the area. ...

The performance of the economy depends entirely on demand and supply of goods and service in the economy. The economy has a demand side and supplies side. When demand side and supply side are equal the equilibrium is achieved. In some instance, the aggregate demand may be high than the supply. This leads to an increase in price of goods and services. When the supply is higher than demand it leads to surplus of good and service in the market. For us to understand the microeconomics concept of demand and supply, we have to explore demand and supply individually. ...

INTRODUCTION

Service organizations face a challenge in terms of managing demand and capacity. Revenue management (also known as yield management) is a technique designed to address that challenge. Mudie and Pirrie, define revenue management as ‘provision of the right service to the right customer at the right time for the right price’ (164). Therefore, revenue management is a technique used to determine the optimal price of products generated by sale. It involves detailed forecasting of demand behavior and sophisticated mathematical modeling. There exists a strong relation between revenue management and marketing. Since, revenue management is responsible for demand control, including setting rate and availability controls, ...

Question 1

Today, the market’s diversity provides numerous low calorie microwavable food options. In addition, increases in the income of individuals, people have the capacity to live easier lifestyles and this has led to increase in demand for certain products of preference.

The quantity demanded equation of the product is given by;

Qd = -5200 – 42P + 20Px + 5.2I + 0.2A + 2.5M

Therefore, the elasticity of P (partial differentiation)

δQdp = -42 Assuming all other independent variables are constant Hence elasticity of P = (δQdp). (δPQ ) = -42(P-5200-42P+5.2I+0.2A+2.5M) For the 3-pack unit = -42(5-5200-425+206+5.25500+0.210,000+2.5(5000)) Therefore = -42 (537810) = -212656 = -0.007906

Solving for Px

ΔQdp = 20(637810)=0.010579

Solving for I

QdI=5.2550037810=0.7564

Solving for A

QdI = 0.2(10,00037810) = 0.0528

Solving for M

...

Operations Concept

Concept of operations is basic, yet complicated to any management system in business, the purpose of operation management is how an individual, group or the whole company as a whole, by utilizing operation management to success in the future. It is upon application of these concepts that desired objectives are achieved including a smooth running of a business and good definition of policies and ethics that govern the business. In this case, operations concepts focus much on the transportation network that a company undergoes in the event of running the day to day activities. As indicated in Deschutes County ITS Plan (2005, p. ...

Abstract

This paper is on the topic of Government Expenditures and Revenues, Budget, National Debt. The first part of this paper will discuss the effect of government purchases on aggregate demand. The second section of this paper will discuss the shift in aggregate demand curve and change in GDP in comparison to aggregate demand curve, on the bases of factors like government purchases, GDP and the multiplier. The Final section of this paper will discuss the issue of crowding out and its implications on fiscal policy changes.

Government Expenditures and Revenues, Budget and National Debt

Yes, all government purchases have the same effect on the aggregate demand curve. ...

for Argentina and Hungary Olomoze’s products would be aggregated in the group or category where tea milk and bubble tea are also classified. From the industry or macroeconomic perspective, while they may be differentiated, these products are considered as alternatives or substitutes to each other . Instead of using dairy or ice cream industry data (which comprise a bigger industry), Taiwan’s aggregated demand for tea milk and similar products are used for demand estimation. Taiwan’s consumption of or demand for these products is estimated at about 1.5 billion cups a year. Each cup is about 8 ounces, ...

Introduction

Housing bubbles have happened in different economies around the globe. The most recent and most publicized was the subprime mortgage crisis in the United States of America. Understanding what a housing bubble entails in very important in determining whether any economy is experiencing a housing bubble. In economic terms, a housing bubble is the unprecedented increase in the prices of houses because of an increase in demand for housing units, speculation on the prices and the belief that the recent trends in demand and price are surefire forecasts of future trends in the housing market.

A housing bubble starts when the demand ...

Introduction

The global usage of gasoline and other sources of energy will continue to increase over the next few decades as populations grow and developing countries expand their consumption of world resources. This implies that energy producers must increase their supply of energy as well as consider alternative sources of energy. There is an ever-growing appetite for crude oil and other sources of energy, with the projection of worldwide energy consumption to increase by more than 40 percent by 2035 (Chevron Corporation, 2013). The growing demand for energy results from the population that is predicted to increase by 25 percent ...

Operations Concept: Aggregate planning

Planning means the ability to set performance goals and expectations for individuals and groups to direct their efforts in achieving the organization’s objectives (David, 2010). Planning also deals with the standards that are applied in order to determine the outcomes from the set objectives and goals. Employees should be included in planning; this is to enable them gain knowledge on what duties they must undertake. It is also necessary to make the employees aware of the right procedure expected in carrying out their responsibilities. This will ensure that they can then be accountable against the output they deliver ( ...

Suggest how an economist would approach the problem of alcohol abuse. Provide two (2) possible solutions to this problem. Include the four (4) elements of the economic way of thinking in your analysis. Economists classify every activity as either consumption or saving. Consumption means that the individual is depreciating investible capital while saving adds to the available capital for investment. Consumption is health to an economy only up to a given level, after which it deteriorates it. In this case, alcohol abuse is a consumption activity that has negative effect on economic growth. Based on this, an economist will handle ...

Introduction

Microeconomics can be defined as the analysis of the decisions made by individuals and groups, the factors that affect those decisions, and how those decisions affect others (Moffatt, n.pag.). Unlike macroeconomics that deals with aggregate level activities, microeconomic deals with individual, household and firm level economic activities. It helps in understanding the dynamics of an industry and microeconomic impact of industries. The industry that has been chosen for this study is automotive industry for two reasons. First, automobile industry significantly contributes to global economy. Second, the industry is dynamic and undergoing a lot of changes in the recent past. ...

According to BBC news (2012), it is important for firms planning the volume and production of oil to know the demands determinant for oil products. It is also important for the consumer to know the available offer of oil products in the market. There are three determinants of demand in the market, mainly the price of oil, balancing or substitutable price for goods and income potential consumers. On the other hand, subsidies, taxes and resources for production of oil are the key determinants of value supply. Besides interest being direction, it is also the magnitude of demand and change ...

<Course> <Institution, State> <Due Date> Considering a new business that deals in construction and selling of real estates, there are many decisions to make during and before sales. Microeconomic analysis is a technique used to determine how the actions and decisions of a business or organization affect the country’s economy. Microeconomic analysis describes how individuals make financial decisions depending on the income they earn and the price of the products they consume. The study of microeconomics covers the levels of production and pricing. However, there are two different methods used in the microeconomic analysis process ( ...

Executive Summary

Although Sunset Grill at Blue is experiencing a remarkable growth rate, managing demand during the peak periods such as weekends is still a major challenge. Customers have to wait for long to the extent that some resort to alternative restaurants. The management, therefore, is considering various ways of increasing service efficiency to reduce the queues and maintain its large customer base. After analyzing various options available, this study recommends that Sunset Grill at Blue should adopt a policy of hiring part-time workers and alternative services to help in enhancing service delivery and reducing the queuing time on weekends.

Background Since its ...

PART 1

Question 1 If the price elasticity of demand for firm X’s product is -1.75, lowering its price will result in an increase in total revenue. This is because a negative price elasticity of demand implies an inverse relationship between price and quantity demanded. It indicates that an increase in price leads to a decline in quantity demanded and a decline in price leads to an increase in quantity demanded. In addition, the price elasticity of demand is more than 1 in absolute terms hence a change in price leads to a more than proportionate change in quantity demanded. A 1% decrease in ...

Executive Summary

Water is an exceedingly crucial resource required for survival. About three quarters of Earth’s surface is covered by water. However, not all of this water is readily usable for human consumption, agricultural production or for industrial use. According to Glover1 “only about 3% of all the surface water is fresh, of which only 0.6% is readily available for use. In fact, only about 0.018% of world’s surface water is readily available2. Australia is a dry continent, being listed as the driest continent of the world possessing only less than 1 percent of the fresh water in the world3. ...

Marginal revenue

Marginal revenue is the difference expressed considering the number of units sold. It may also be the change in cost of a product when the production changes by one unit. Total revenue, on the other hand is the total sum received after completion of a business transaction (Posner, 1999). Its relationship to marginal revenue determines the amount of profit that is derived. Marginal revenue is subtracted from total revenue to get the profit.

Marginal cost

Marginal cost is the point of profit maximization where by a firm has done all in its power to minimize on other expenses. The final price of a product is ...

Question 1

- Describe the different types of costs associated with inventory. Inventory costs can be divided into three main categories, namely purchase costs (the cost of procurement), storage costs (maintenance) and costs related to the lack of goods (shrinkage). Purchase costs (also called as the costs of order preparation, especially when it comes to production), or restocking are economic consequences caused by direct orders, that is, costs that arise every time the company place customer’s order. These costs can be divided into two parts: the costs directly for the placement of the order (they can be persistent and ...

Introduction

Airline companies charge different prices for different classes of passengers. A passenger who wishes to have higher quality services during the flight must pay a higher price for their tickets than those who travel in a different class. The airlines differentiate the prices of customers by having different features in the categories. However, there are other instances when the customers’ ability to travel in the business class is limited by their level of income. Pricing is one of the strategies used in maximizing revenues for the airline companies. The companies, therefore, must take into account the factors that affect demand for ...

Executive summary

In essence, it is established that the sharp increase in the demand for water in the past fifty years is attributed to among other factors; the consequences of agricultural, industrial and increased consumer demand resulting from a larger population. As well, the report explores some of the solutions to the issue of water scarcity in China amongst which includes increasing the water efficiency, expanding the supply of water and the general improvement of public participation in effective usage of water.

Introduction

Water is exceedingly essential human existence besides being a precious commodity. With the endless development of the world, the demand for ...

Section 1: Explain and discuss the various oil and gas price drivers and make a clear recommendation of the trend you believe prices will follow and why.

Economic cycles of boom and recession have a major impact on oil and gas prices. Demand for oil is significantly affected by the two economic cycles. The Department of Energy and Climate Change (2012) observed that studies have shown that there is a very close link between global GDP growth and oil demand. This link has been identified in various business cycles that have been identified as having a significant impact on economic growth. Business cycles ...

Economics is the study of how human beings use the scarce resources in the environment to satisfy their unlimited wants. Various economies in the world have been analyzed by financial and economic analysts who have the knowledge in economics. Some of the analysis has been put into writing in articles as well as journals. This has been important in evaluating the causes and impacts of the changes in economic activities in the world. “American Trends in Oil: Less of a Menace from Oil” is one of the articles analyzing the economic activities in the United States of America.

This ...

Introduction

The most fundamental and essential aspect of economics is demand and supply. In any common marketplace, a commodity’s price is usually determined by its supply and demand. Demand refers to the quantity of a product or service desired by customers. Supply, on the other hand, refers to the amount of a product that the market is able to offer. As will be seen, the supply and demand are very dynamic and keep on changing from time due to a variety of factors. This essay seeks to explore some of the factors that have been influencing the demand and supply for food in ...

General Motor’s Chevrolet Volt

Product description and usage General Motors Corporation is a United States-based company that designs, manufactures and sell cars, trucks and automobile parts in the global economy with operations in almost every country. It has been in operation for the past 100 years having manufactured close to 450 million vehicles. Chevrolet is one of GM’s main products that is extensively used for transportation in the US. Chevrolet is easily identifiable among competing brands due to its distinctive bowtie emblem. Chevrolet Volt is a hybrid vehicle that runs on both electric and gasoline power. Currently, it is rated as the most ...

Chapter 10:

Question1. As government expenditure increases, the income increases. This increase in income leads to a rise in consumption expenditure. A 1 unit rise in income leads to a rise in consumption by the marginal propensity to consume. As consumption expenditure increases, this induces further increase in output in the economy. So income increases. The increase in government expenditure creates a multiplier effect. This multiplier depends on the marginal propensity to consume (MPC). Higher the MPC higher is the multiplier effect.

The money market is at equilibrium when the demand for money equals the supply of money. The demand for money has ...

Price Elasticity of Demand: Coca Cola Company

Price Elasticity of demand measures the change in the quantity demanded in response to a change in market price of the commodity. The same is measured by following formula: Price Elasticity of Demand= % Change in Quantity Demanded/ % Change in Price In context of Coca Cola company, the price elasticity of demand can be described as change in quantity demanded of Coca Cola when the company changes the price of the soft drink at which it is offered to the consumers. For instance, if Coca Cola increases the price of 300 ml Bottle from $1 to $2, then it ...

The FIFA World Cup is an international football tournament that takes place after every four years. This event will take place this year (2014) in Brazil. The FIFA World cup is world`s most famous sporting event. The event gets popularity due to broadcast by various television stations. Millions of people travel from their country to the host country to participate in the event. It is expected that the event would boost the economy of Brazil. This paper tries to examine the effects of the World Cup on the Brazilian Hotel businesses. Several businesses will increase their operations ...