...Elasticity Paper Elasticity Paper With all products available on the market there is always fluctuation with supply and demand. It is said that some products are complementary to one another and can cause the demand to grow for relatable products. These would be considered compliment products on the other hand there are products that can lower demand for other products as they compete with one another for the market share spot; these would be called substitute products. These products combined have their effect on the price elasticity of demand. Compliment products are easily described in examples like hot dogs and buns they typically get sold together. Other products can do the same depending who you are. For ladies if a dress is on sale one might see a spike in shoes to go with that dress for guys this may be totally different. The ideology behind it is that there is a pricing shift in one item lowering the price and that could cause a spike in the demand of another relatable item even if there is no price cut. This will cause the demand spike. A substitute is a product or service that will satisfy the need of the customer in place of another product or service (Investopedia, 2014). Products must have a relationship with one in another in order for a substation to occur. A good example of a substitute occurring is when the price of sugar rises, the demand for the substitute sweetener products such as Equal or Splenda will increase. The demand for the substitute...
Words: 456 - Pages: 2
... Andrea Lopez, and Joseph Torres ECO 365 Elasticity Paper October 20, 2014 Todd Myers Introduction A consumer walking through the grocery store intent on purchasing the necessary ingredients for a peanut butter and jelly sandwich notices the prices for all brands of peanut butter are higher than expected. Will this consumer choose to not purchase peanut butter and buy bread and jelly only? By raising the price of peanut butter the retailer risks selling less bread and jelly in addition to reduced peanut butter sales. If the same consumer went to another grocery store and found only one brand of peanut butter priced higher than the others, the elasticity principle of substitution will apply. The consumer will pick a different brand of peanut butter and follow his original plan to purchase bread and jelly. Complementary Products Complementary products are, "goods used in conjunction with other goods" (Colander, 2013, pg.136). The law of elasticity in relation to complementary products shows that when the price of a product increases or decreases it will have an impact on the demand for complementary products, in this case resulting in lower sales of those products. In the example above the desired meal is a peanut butter and jelly sandwich. The elasticity in the price of peanut butter will force the consumer to spend more money and buy the peanut butter with its complementary products of jelly and bread. If the elasticity of the price increase is too great for the consumer...
Words: 637 - Pages: 3
...ECO 365 Elasticity Paper January 24, 2015 Introduction A consumer walking through the grocery store intends on purchasing the necessary ingredients for a peanut butter and jelly sandwich notices the prices for all brands of peanut butter are higher than expected. Will this consumer choose to not purchase peanut butter and buy bread and jelly only? By raising the price of peanut butter the retailer risks selling less bread and jelly in addition to reduced peanut butter sales. If the same consumer went to another grocery store and found only one brand of peanut butter priced higher than the others, the elasticity principle of substitution will apply. The consumer will pick a different brand of peanut butter and follow his original plan to purchase bread and jelly. Complementary Products Complementary products are, "goods used in conjunction with other goods" (Colander, 2013, pg.136). The law of elasticity in relation to complementary products shows that when the price of a product increases or decreases it will have an impact on the demand for complementary products, in this case resulting in lower sales of those products. In the example above the desired meal is a peanut butter and jelly sandwich. The elasticity in the price of peanut butter will force the consumer to spend more money and buy the peanut butter with its complementary products of jelly and bread. If the elasticity of the price increase is too great for the consumer and the consumer chooses...
Words: 624 - Pages: 3
...Elasticity Paper The purpose of this paper is to discuss why some products become substitutes and why are some products complements. Within the economy and the times of today, products have substitutes and some have compliments. There is always a change in supply and demand with any product that becomes available. There is a difference between products that are complements and products that are substitutes. Complimentary products are those products that compliments one another , in which this can cause the demand for the product to grow. Substitutes are just the opposite and can lower the demand of the product; in which the product will not sell. Both of these are important to the economy because the consumer would have a option of how much money they would want to spend, and how effective the product is. A great example of complementary is a cell phone and its mobile applications available. To be more specific, the application iTunes is a complementary item for the iPhone6. Essentially, the iPhone6 lowered the price on the application iTunes and raised the demand of the iPhone6. This can also be said for the iPad and its applications available. Substituted good are items that could be swapped with each other to still fulfill the wanted need. If the price of one good increases and a similar good stays the say the demand of the quantity of the good that stayed the same will rise. For example, if the price on breath mints rose substantially...
Words: 295 - Pages: 2
...expenditures per month) M= 5,000 Number of microwave ovens sold in the SMSA in which the supermarkets are located If you substitute the numbers into the demand equation you would get: QD = -5200 – 42(500) + 20(600) + 5.2(5500) + .20(10,000)+0.25(5000) = 17,650 Elasticity’s for each Independent Variable Using the numbers from the above equation, the computations of the different elasticity's are below. • Price Elasticity of Demand – The $5 is shown as 500 cents. The 17,650 is the quantity demand. The demand is inelastic since the answer is negative. = (Q/P)*(P/Q) = (-42)*(500/17650) = -1.19 • Cross Price Elasticity of Demand – the $6 represents the 600 cents. The 17,650 is the quantity demanded. It is reflected at a substituted good, which is a good that consumers switch from one to another. = (QPX/PX)*(PX /Q) = (20)*(600/17,650) = 0.68 • Income Elasticity of Demand - the 5,500 is the buyers’ income. The 17,650 is quantity demanded, showing for normal goods. = (Q/Y)*(Y/Q) = (5.2)*(5,500/17,650) = 1.62 • Advertising Elasticity of Demand – the 10,000 is the advertising...
Words: 1106 - Pages: 5
...Supply and Demand and Price Elasticity Paper Betty Hargrove ECO/212 January 30, 2013 Vivek Singhal Introduction After careful evaluation of our daily commodities we have chosen, soap, oil, sugar, salt, tissue, flour, toothpaste, deodorant, electricity, and wheat. These lists of commodities are necessary in a basic style of life. Our chosen product to focus on throughout our paper is sugar. We will address the supply and demand shift of sugar in a market economy. Furthermore, we will address supply and demand and price elasticity as well as whether our chosen commodity is a necessity or a luxury. Supply and Demand Shift There are limited explanations of why the demand and shifts in sugar vary. One of these reasons is because of the federal tariffs that are put on sugar. A tariff or tax on the import or even export increases the price and make it less in demand. No one wants to pay more for anything that we were paying less for a week ago. Also now there are a few different substitutes of sugar then using the real things. There are brands such as Equal, Splenda, and Sweet and Low. These are known as artificial sugar substitutes. These artificial sugar substitutes are sometimes found in food that we consume daily depending on our likes. Items that are, labeled as “diet” or “sugar free” use artificial sweeteners. There is “sugar free gum” and “diet soda”. These products typically have artificial sweeteners. The demand for the sugar is how much the consumers are willing...
Words: 2096 - Pages: 9
...Date: [2/23/2012] To: Lead Economist Laura From: [Tony Randall] Subject: Final Project Paper After completing this course in Microeconomics, I have learned quite a few things about this subject. It is my hope that what I have learned can be relayed to others and be beneficial to whoever decides to take this subject. I have learned how our economy works on a small scale and a large scale. There are many different kinds of economies in our world and each have an important role for running their respective countries. The first is the Centrally planned economy in which the government of that respective country decides how economic resources will be allocated. The second economy is a market economy in which the decisions of households and firms interacting in markets allocate economic resource. The third and final in the mixed economy in which most economic decisions come from buyers and sellers in markets but where the government plays a major role in allocating resources. our economy is slightly a mixed one .(Hubbard,R& O Brian,A, 2009) Supply and demand is one of the most basic Ideas of economics and it is the core of the market economy. Demand simply means how of a product or service is wanted by a consumer. The quantity demanded is the amount that people are willing to buy at a given cost. Supply represents how much the market can offer. The quantity supplied refers to the amount of a certain good producers are willing to supply when receiving a certain...
Words: 1239 - Pages: 5
...Assignment 2: Utility, Elasticity, and Demand Microeconomics 202 I have been placed in charge of a product campaign for a new shampoo, Blue Hawaiian. The objective will be to create and produce a product that competes with the economy brand shampoos currently in the marketplace. The ultimate goal of the campaign will be market penetration and distribution in major retailers including Walmart, Target, Kroger, Costco, and Albertsons/Safeway to name a few. In order to initially gain distribution we will have to utilize a saes team to get appointments with the buyers of the retailers we wish to target and present our new line. To secure new distribution funds will be allocated to ensure warehouse slotting. The initial distribution push will be rolled into the marketing and production costs of Blue Hawaiian shampoo’s launch. Blue Hawaiian will have different SKU’s with Hawaiian influence; Coconut, Pineapple, Mango, and Island Breeze. Pricing will be competitive with popular brands such as Suave, Dove, Pantene, and Neutrogena. (top10for.com). The target retail will be $3.99 at retailers such as Kroger and Albertson/Safeway, $3.19 at Walmart and Target, and $5.79 for a club pack at Costco. The target production cost will be .99 a unit for the singles, and $1.98 for the club pack. Various forms of marketing will be used in the launch of Blue Hawaiian shampoo. Television, print, and social media will be the primary sources of marketing...
Words: 716 - Pages: 3
...Two Different Brands of Rubber Bands A Research Paper Presented to the Faculty of Australian International School In Partial Fulfillment of RAISE Program (Research in Australian International School for Excellence) Ramos, Anna Dominique A. Grade 10 School Year 2013 – 2014 TABLE OF CONTENTS TITLE PAGE i APPROVAL SHEET ii ACKNOWLEDGEMENT iii ABSTRACT iv CHAPTERS I. THE PROBLEM AND BACKGROUND OF THE STUDY Introduction 1 Conceptual Framework 2 Statement of the Problem 2 Hypothesis of the Study 3 Assumption of the Study 3 Significance of the Study 3 Scope and Limitation 4 Definition of the Terms 4 II. REVIEW OF RELATED LITERATURE Conceptual Literature 5 Research Literature 6 III. METHODOLOGY Research Design 7 Materials 8 Procedures 8 IV. PRESENTATION, ANALYSIS, AND INTERPRETATION OF DATA Table 4.1 9 Figure 4.1 10 V. CONCLUSION AND RECOMMENDATIONS Major Findings 11 Conclusion 11 Recommendation 11 REFERENCES 12 APPENDICES 13 Approval Sheet In partial fulfillment of the RAISED (Research in Australian International School for Excellence) requirements required to pass the present grade level, a research paper entitled “A Comparative Study of the Elastic Limit of Two...
Words: 2712 - Pages: 11
...ONLINE SUBMISSION ASSIGNMENT COVER PAGE | Name: Anthony Radici Student number: S00110027 Tutorial time room: Monday 5pm. Room C3-07 Date: Friday the 2nd of May 2014 Course: Bachelor of Commerce Subject: Principles of Economics Instructor: Dr Jason koh “ An analysis of the key macro and micro economics factors which impact on the current Australian housing market” Introduction This paper explores the current situation of the Australian housing market. This paper will place a major focus on how macro and microeconomics impact the housing market in Australia. The paper starts off with the Australian economy and the housing market at the moment. The next section is the major part of this essay as it focuses on the macroeconomics factors, which have formed the housing market. The following section briefly explores the microeconomics factors, which have formed the housing market. And finally the last section of this paper ended by a conclusion. Australia and the housing market Throughout the years we have seen a massive change in prices when buying a house in Australia, this is due to many different factors, which have had a big impact on the economy itself. One of the main reasons why prices have been going up is because of the population growth. As we know as the demand increases, price also increases. Recently we have seen a change in people willing to buy a house, they are mostly aged between 22 to 42 years old and in most cases, they can...
Words: 902 - Pages: 4
...DETERMINATION OF SOIL STRENGTH CHARACTERISTICS PERFORMING THE PLATE BEARING TEST Summary: In the international literature there is often confusion between the terms Modulus of Elasticity EYoung and Modulus of Deformation EDef for homogenous, isotropic masses, which, sometimes, plainly referred as Modulus E, without any further explanation. In this paper a distinction between the EYoung and the EDef is being done and the interest is concentrated in the Plate Bearing Test, which is commonly used in highway earthworks. Moreover, a soil classification diagram is given, in which the soils are classified by their shear strength parameters and their behavior, as totally elastic or elastoplastic, under specific loading applied by rigid circular plate. Finally, a method for the estimation of the soil parameters is proposed, using only the in-situ Plate Bearing Test. The study and the documentation were supported by a presentation of theoretical examples, based on the Finite Element Method. 1. INTRODUCTION In highway earthworks the knowledge of the Modulus of Elasticity of the soils is very important, whether the projects are in the stage of design, construction or compaction check and this is required to be obtained by an easy manner. Due to the complexity and difficulty in determining the Modulus of Elasticity in the laboratory by the Triaxial Test, which is usually not available on the worksite, the common practice for the designer is to determine the Modulus of Deformation with the...
Words: 1818 - Pages: 8
...Business Proposal ECO/561: Economics September 23, 2013 Market Equilibration Process Paper Casey’s Nutrition World (CNW) operates as a specialty company of health and wellness products. CNW inventory includes minerals, vitamins, diet products and herbal supplement products as well as sports nutrition products and other wellness products for women 40 years and older. The company sells its products under CNW proprietary brands, including Ultimate Women, Immensely Megawoman, Fit and Lean, Pro Performer, and Pro Performer Activator, as well as under third-party brands. As of September 23, 2012, it had approximately 500 locations, including 760 retail locations in the United States with plans to expand internationally. The company sells its products through company-owned domestic retail stores and corporate partnerships. It also offers its products at CNW.com, SpicyVitamin.com, and drugstore.com. Identify market structure According to "WebMd, Vitamin Essentials As We Age" (2013), “As we age, our dietary requirements change, and we're also more focused on the diseases and disorders that accompany aging -- conditions that getting the right nutrients may help to prevent. So if you're in your 40s, 50s, or 60s, with things like menopause, retirement, and creaky bones looming a little larger in your daily life than they did in your 20s and 30s, and what vitamins we should be taking will most likely change” (para.1). CNW targets Women...
Words: 1155 - Pages: 5
...McDonalds Business Proposal Paper Dorrina Martini ECO/561 February 3, 2012 David Francom McDonalds Business Proposal McDonalds has always been a company that shares in the happiness of a child. Recently after taking my own children to McDonalds, I have found that there is not a breakfast option for children. McDonalds should add a happy meal option to the breakfast menu. Current demands by consumers are to add a happy meal option allowing parents to purchase child sized portions of breakfast items. This option could help McDonalds to increase profits by attracting more consumers. Shareholder reports show a quarterly cash dividend per share increase of 15% and annual dividend of $2.80 per share. Comparable sales grew 5.6%. Cash by operations increased $808 million to $7.2 billion. Return to shareholders $6.0 billion (McDonald’s.com, 2012). Elasticity of demand and the market structure for the company’s good or service. * Profit-maximizing quantity is figured by determining the elasticity of the product. * By dividing the change in quantity sold by the corresponding change in price, you get a coefficient that tells you how elastic or inelastic your product is – with coefficients between zero and one being inelastic and coefficients greater than one being elastic. * The elasticity of this particular product is determined by the individual instead of the population. Considering this fact, fast food is considered an elastic good. An elastic good is more of...
Words: 1240 - Pages: 5
...Current Market Conditions Competitive Analysis ECO/365 Professor Alan Beideck Gregg Mooney, Doris Barlow, Dianne Gaynor, Cherry Hla-Htay November 29, 2015 Current Market Conditions Competitive Analysis Technology has been a big part of today society. Most technologies have been implemented into everyday life. There are different factors, which impact the demand within the market. The constant changes are reflected on the amount of consumer, the number of supply and demand for the product. There is also a focus on the price elasticity and also the constant development of the product based on the demands of the consumers. With the higher end technology always in production and the constant completion arising consumer has expectation for the products. One of the expectations is that there will be declines in prices as the new technology develops. This is a constant struggle for companies such as Google, Apple etc. With constant competitors knocking at the doorstep, it becomes more challenging for Google. Even as the time change, Google has been constantly shifting to other areas of the market and dominating the expectation of its consumers. Google has been widely known for the search engine and as the technology advance; Google has expanded its market to providing Android software to products such as smart phones and tablets. Google started its journey in within late 1995 and had the domain resisted by September 1997...
Words: 915 - Pages: 4
...PLANNING & DRAFTING YOUR FIRST PAPER Use this sheet to help you: • understand the 5 main steps of writing • preparing and planning to write an essay or report 5 minute self test Consider the following questions before reading the helpsheet: • What are the five typical stages involved in completing an assignment or report? • What are directive words? Name three commonly used directive words used by lecturers in setting assignment questions? • How is “brainstorming” used in assignment preparation? • What’s the difference between a mind map, concept map and spider diagram and how can they be used in assignment preparation? • List some words and phrases commonly used in sequencing paragraphs in assignment writing? • How does one write an argument in an assignment? • What do you need to consider when editing an assignment? • What’s referencing? © The University of Melbourne 2010. These materials were produced by the Teaching and Learning Unit, University of Melbourne. The University of Sydney has reproduced these materials under licence from the University of Melbourne. Helpsheet GOOD WRITING Good writing is writing that effectively conveys to another person what is in a writer’s mind. In any profession, writing is very important, even in the professions that are not traditionally associated with writing, you will have to communicate with colleagues and clients. The value of writing is that putting something down on paper forces you to clarify your ideas...
Words: 6070 - Pages: 25
