Essays on Price Increase

1. The fuel industry in California cannot run without gasoline as the main energy resource. The moment when refinery and pipeline mishaps raised the wholesale prices to their maximum, the gasoline stations could not operate their business properly. Most of the experts explain this sudden price increase with the power outage of the state’s 14 refineries which produce the state’s cleaner-burning gasoline for the local stations (White & Castellanos 2). In addition, there was also a fire at Chevron Corp.’s Richmond refinery, which led to the temporary fall of one more fuel production enterprise in the state ( ...

Every organization has to work on the principles of ethics and responsibility. Ethics make the foundation of every business and if ethics are not followed as such, then the functioning of the business suffers and it loses it image and reputation at a gradual pace. Sometimes, managers face ethical dilemmas where they are not able to decide whether to stick to the values of the company or opt for decisions which are better for the organization in the long run (Ford & Richardson, 2013). The given case is about the ethical dilemma being faced by George Cosgrove who is serving ...

The Impact of the Guaranteed Price Policy on the European Sugar Market

Sugar industry is one of the most dynamic in the structure of the food industry and plays a significant role in the economies of several countries. The European Union leads the five largest importers of sugar. Sugar production in the EU is expected to grow by 10% in the 2017/18 season. The production may reach 18.3 million tons, but still will be lower than the record 2014/15 season (19.4 million tons). Sugar production growth is expected in France (up to 5.5 million tons) and the UK (up to 1.4 million tons). However, despite the increase in production, the EU ...

The knowledge in economics encompasses a wide array of topics that involve different economic activities, such as the ones that influence the government in carrying out regulations on gasoline prices as well as imposing a price floor in relation to the minimum wage. In this discussion, different economic scenarios will be presented along with the possible outcomes of each. In addition to the provided situations about the price ceiling for gasoline and price floor for minimum wages, other economic events will be presented, such as the possible gains and losses of international trade and the possible outcome once the ...

Introduction

Can colleges and universities increase their tuition rates continuously, despite the suffering they cause students? This issue can be and has been tackled by economics – specifically; we can use the tools offered by the study of price elasticity of demand to see what colleges take into consideration before raising their prices. The reaction of students to the increasing tuitions and other expenses might be a driving force on the demand side for higher education. If the students believe that higher education’s high costs will not create a value equal to or less than its cost, they might prefer ...

Introduction

Three-circle analysis is a tool that allows management to give an internal analysis of the organization. Through the analysis, strategies assess the needs of customers, competitors’ offerings, and company offerings for clearly articulating the competitive advantage of the company and way it differentiates itself from its competition. The paper presents the analysis of Netflix’s competitive strategy in the light of three-circle model to better illustrate customers’ needs, company’s offerings, and competitors’ offerings.

Most Important Customer Segments Need or Want from the Product or Service

The first circle represents the consensus of the team on the most important needs or wants of the segment of customers (Pearce, Robinson & Mital, 2012). ...

Introduction

Can colleges and universities increase their tuition rates continuously, despite the suffering they cause students? This issue can be and has been tackled by economics – specifically, we can use the tools offered by the study of price elasticity of demand to see what colleges take into consideration before raising their prices.

Let us assume that, in an attempt to raise more revenue, New York State University increases its tuition rates. Will this necessarily result in more income for the university? Not always. As we know, revenue depends on price and quantity of the demanded good or service. In the ...

The Name of Professor:

Introduction The main idea behind the mind of every investor is to achieve long- term growth of his or her business by serving a wider market to increase profitability. However, the existence of various factors such as competition and government regulations tends to impede the successful accomplishment of most investors’ goal. Besides, the efficiency of the strategies implemented by different investors constitutes fundamental hindrances to the realization of their long-term objectives. Therefore, efficient management is crucial to realize business expansion. Additionally, the consideration of other factors with a significant influence on the business environment is essential when formulating the ...

Suppose that, in an attempt to raise more revenue, Nobody State University increases its tuition. Will this necessarily result in more revenue? Not necessarily. As we know, revenue depends on price and quantity of a given good or service; in the case of Nobody State, Revenue = Tuition Price x Number of Enrolled Students If tuition price increases, the number of students will likely fall as fewer students will be able to afford Nobody State and will favor its nearby competitor, Anybody Community College. As we can see, the qualitative aspect of demand is easy to grasp (increase prices, lower ...

Nationwide Telephones

The basic objective of the paper is the identification of reason for the price increase of the plastic components. The intention of Steve is also to help Bill in understanding the possibilities of reduction for the present inflated prices.

Discussion

The main offering of Nationwide Telephone is low-cost and high quality telephone from 2001. Their reliance is mainly on the local suppliers such that maximum lead times can be observed even when the suppliers are limited. The travel costs are minimized by the combination of prompt delivery times and lesser lead times. The supply manager at Nationwide is Steve Young. ...

How Biofuels Affect Our Society

Health Impacts of Biofuel The term biofuels is no more used in simple term, as it has become a matter of government policy and business. Earlier, it was due to government initiatives and policy matters that the support to the growth of biofuels was provided by the governments worldwide, but things have become complicated with biofuels affecting populations on the health, social, and environmental aspects, which need urgent attention. It requires good policy-making with a clear goal. According to Lawrence (2010), the present U.S. biofuels authorizations are not loaded with exact and efficient tools to fulfil a policy-specific aim. ...

Crude Oil Prices: Market Supply and Market Demand

Abstract The primary purpose of this paper is to understand how supply and demand factors contribute to a consistent decline in crude oil prices across the globe. Furthermore, the paper seeks to understand the impact resulting from the fall in the U.S and the global economy and implications of the same. In the introduction, the paper starts by acknowledging the importance of crude oil to the world economy and the fact that it is an ordinary commodity whose price is influenced by the market forces. Oil prices are renowned for their instability in the market, an aspect that is ...

Inflation is the continuous increase in the general price levels of commodities in the economy over a period. It is identified with the market fall of the value of money in a particular economy. This recurring price increase erodes the purchasing power of money creating economic distortions and uncertainty (Sargent 2002). Inflation may also be described as a sudden increase in supply of money in a given economy. This results to each unit of currency buying fewer commodities thus a reduction in the purchasing power per unit of money. It can also be viewed as an increase in the supply of money at a rate ...

Labor cost

Effect of the World Economy as China commodity increases Chinese has employed wide use of the mass production as a manufacturing strategy. This has lowered the price of commodities compared to other markets in the world. The Chinese product has been more competitive in the entire market and contributing largely to the economy of the country. The exported products to the international market from china have a competitive advantage due to the low cost. In comparison to other markets the Chinese products such as DVD player and sweater among others, are cheap and hence attracting consumers. United States has ...

Price increase can spell the success or failure of any given business. It is one procedure that should be taken with caution. Nanaimo is faced with the challenge of price increase with the competition being one of the factors that need to be considered. Starbucks and Serious Coffee have been our main competitors. An uncalculated price increase can result in loss of customers.

With the 25% increase in cost, there are many options that will have to be considered when undertaking price adjustments. One of the strategies that will be considered in determining the price increase is using cost ...

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 ...

Judging by the financial results obtained in 2013, Amazon.com Inc. implemented successful financial management. The revenues grew by 13.4 billion USD in 2013 if compared to previous year. The company moved from a loss of $39 million in 2012 to a gain of $274 million in 2013. The revenues of the company more than doubled showing stable uptrend (Figure 1). As it can be seen from Figure 1, the financial management was not very successful in 2014 because one-year movement of stock is currently in the downtrend. However, one-month movement of stock shows uptrend raining hope for growth in the near ...

Kristin Hall

ECO 201 October 10 - 2014 Section : 1427 Team member Names Executive Summary Crystal Clear Manufacturers is a manufacturing company that makes products named Aldo, Braco, Creo, and Dwat. These products are categorised as Legacy or New. There is a large market that has not been tapped by other manufacturing companies in the region. To explore the potential of this untapped market, Crystal Clear is conducting a sales and marketing analysis for its new and legacy products. A marketing and price communications team is tasked with ensuring that it perform a market analysis of the potential sales ...

Apple is one of the most valuable companies in the world. It is at the forefront of innovation in the areas of desktop computing and publishing and mobile entertainment and communication. It revolutionized the world of portable music with the introduction of the iPod. The opening of iTunes redefined the whole concept of selling music for portable media. The opening of iTunes changed the music retail industry altogether. It led to the demise of two music retail giants: Tower Records and Virgin Megastores. Recently, however, the company seems to be suffering from bad publicity regarding some ethical issues. ...

- Reed Hasting’s original strategic vision for Netflix was to create a better way to provide home movie services to its customers. Hastings wanted to deliver DVD’s by mail to his customers using the United States Postal Service. In 1997, home movies were only available on VHS, so Hastings recognized a need for his services in the market. There were no companies solely dedicated to the home delivery of DVD’s in the marketplace and Hastings realized that he could create a customer base who wanted these services. Hastings strategy was simple; customers were able to rent a certain number of ...

Question 1

Profit maximization by a firm is a process to determine the best possible output and the pricing levels so as to maximize its return. As a step in that direction, companies adjust factors that are influential, such as; projection costs; sale prices, and output levels as a way of attaining its profit goal. The two main profit maximization methods used are: Marginal Revenue Method and Total Cost-Total Revenue Method.

Question 2

Say if the price elasticity of demand for a given product is inelastic, then in that case a price increase will also increase the total revenue. Therefore, the executive implies that a price increase will result in ...

Gluten-free bakery can enlarge the product line and devise new advertising strategies for higher price bread products. The company introducing drinks and beverages can execute this cross-selling strategy. Adding a richer variety of coffee, juices, tea, and chocolate would help in expanding the menu selection. The introduction of other items will entice customers to buy other bread products with a higher profit margin. The strategy will increase the sales realized by the bakery. In addition, it will result in high priced products selling more, absorbing the increase in the cost of the glutton free flours. However, the capacity to expand the ...

Introduction

Cornwell Performance Products Company herein find themselves in a very precarious position. They have an opportunity to balance their options in the conflict with the EPA and also with Epsilon or lose out completely in their business which, according to the available information, has been thriving well. The opportunity concerns their negotiations with Epsilon and keeping up to EPA demands. Before interrogating the negotiation plan, it is important to discuss some of the essentials of negotiation so that the negotiation plan becomes easier to draft. It should be remembered that negotiation is one of the Alternative Dispute Resolution Mechanisms and, ...

1.0 Compare and contrast fixed-price contracts and cost-reimbursement contracts in terms of the benefits and drawbacks of each for your business. Fixed- price contract is one whereby the price of the goods, works or services to be provided is agreed upfront so that the contractor gets paid the amount agreed upon after successfully supplying or providing the contract service. This type of contract is appropriate for goods and services that can be adequately described so that both parties are able to understand the requirements and at the same time asses any risk that may be involved in discharging ...

Although terms scarcity and shortage may seem similar at the first glance, they are not the same. In economics these terms apply to different types of situations. One of the basic postulates of Economics is that society operates within a world where resources are limited, and it is impossible to satisfy the overall demand and fulfil all the existing needs. Scarcity implies that in the situation when price is equal to zero, it is impossible to satisfy all demand, because producers are not able to produce more. Scarcity exists everywhere, as resources are always limited (renewable unlimited resources such as ...

Main Products and Services

McDonalds produces products that can be separated in several groups. These products are French fries, Desserts, salads, soft drinks, pork products, chicken and hamburger. Other products include salads, which are new in the business. These salads were included in the menu in 1985. McDonalds puts a lot of effort in achievement and not losing its clients. Desserts are the last groups of products in McDonalds. These include such products like freshly baked cookies, McDonald cookies, ice cream, yoghurt, Cinnamon melts and Pies. The supply of these products depends on the different regions across the globe.

Main Customers

Since the global crises, the ...

Following the American Psychological Association’s Guidelines

Microeconomics and Macroeconomics Concepts GoodLife’ supply curve given in the first page is a microeconomic concept. It shows the quantities can be supplied for the given prices, or in another word, this company’s supply curve exhibits how the company reacts to the prices by changing the quantity supplied. When the company rents out all the apartment, the company ask a price level of 1500 $ for an apartment. Price ceiling policy is a macroeconomic concept, because government makes a policy decision and this decision affects all market players in economy. A price ceiling means an excessive demand in market, because GoodLife ...

World economy is a complex unity of all local economies represented in the world. Due to the continuous processes of globalization and integration, whatever changes take place in one country, they are easily shifted into another area along with all related effects. That could be even compared to “the domino effect”. And it would be a very positive aspect if not for all the bugs and issues which evolve each day on every market, either local or global, influencing the overall situation in one country or the world economy as a whole. Quite many economic “viruses” can be recalled now as ...

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. ...

Business

Introduction This essay is about research of comparing and contrasting the methods of evaluation in capital projects. This writing will include the information about the evaluation methods for NPV or Net resent Value, IPR or Internal Rate of Return, proposed projects ratio of payoff to investment or Profitability Index, and the Payback Method or the process of focusing to payback period which is the length of time that a project takes to recoup from the initial cost out. This paper will be written in a manner of providing separate evaluation for each method with the inclusion of study on the ...

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 ...

The demand for caviar D for Jane is perfectly inelastic, since she buys the same amount at any cost (see figure 1). However, once the price for caviar increases, the total spending on caviar increases, reducing the income available for hot-dog consumption. With a lower income, Jane’s demand curve for hot-dogs shifts inwards from D1 to D2, indicating a decrease in consumption of hot-dogs at all price levels. Since the accident in Chernobyl hasn’t affected the price of hot-dogs P, Jane’s consumption decreases from A to B, as shown in figure 2. The concept of price elasticity of ...

The law of demand states that a change in the price of a good or service results in a change of quantity demanded by the consumer. There is an inverse relationship between price and quantity demanded in that a price increase will result in a decrease in quantity demanded and vice versa. The degree of responsiveness of quantity demanded as a result of a change in price varies with the type of good or service. Elasticity of demand measures this responsiveness or sensitivity of demand of a commodity to price change (Brue, McConnell, & Flynn, 2010). Price elasticity of demand may be elastic, unitary or inelastic. ...