...Factors Affecting Aggregated Demand and Supply Factors Affecting Aggregated Demand and Supply Facebook’s internet.org project When you go into the website in the main page the words “the more we connect the better it gets”, “2/3 of the world is not connected to the internet” and also at the very bottom it has a section to where it is titles “these are their stories” and there are four sets of names and to what and who they are, but it is interesting because as I clicked on the names “ Erika & Esmerelda” at the bottom of their name it states “ 11 year old inventors” it caught my attention and so I clicked on “learn more button” and It then asks as to is I want to know on how they did it, their inventions of course. They begging as to saying that they would love to tell us on how these two girls became inventors but that one would have to head over to Bolivia due to the fact that they are not on the internet. With that I can see how they are trying to get ones attention into supporting their project, by showing them how there is people who not only need internet but also need to be on the internet. "Internet.org by Facebook." Facebook. Facebook.com, n.d. Web "Erika&esmerelda." Internet.org by Facebook. N.p., n.d. Do you think the internet services that internet.org project offer are actually free? I am indecisive on if the services that face book’s internet.org project are really free. Reason to it is because they can be free to those that need the internet or...
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...Paper 1: Factors That Will Be Affecting the Demand And Supply For Products Presented to: Dr. John A. Machnic, Phd In Partial Fulfillment of the Requirements of: Managerial Economics Summer 1, 2013 Section OB Introduction: Demand is described as the ability and the willingness to buy a specific quantity of a product at a given price (Grant, 2002). The demand curve is downward sloping and varies inversely with price. Price changes cause a movement along the demand curve while changes in the factors that influence demand cause a movement of the curve itself. Supply is described as the ability and willingness to supply a specific quantity of a product at a given price (Grant, 2002). The supply curve is upward sloping and varies directly with price. Price changes cause a movement along the demand curve while changes in the factors that influence supply cause a movement of the curve itself. A dynamic global economic environment with continued innovation leading to new and improved technologies entails ever changing demand and supply situations for a large number of goods and services on offer to consumers presently. This paper examines the changing demand and supply considerations for 10 such products with a synthesis as to whether demand/supply for/of them will increase/decrease in the years to come. Before we proceed, it is important to understand what is meant by demand and supply...
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...Factors That Will Be Affecting the Demand And Supply For Products Introduction: Demand is described as the ability and the willingness to buy a specific quantity of a product at a given price (Grant, 2002). The demand curve is downward sloping and varies inversely with price. Price changes cause a movement along the demand curve while changes in the factors that influence demand cause a movement of the curve itself. Supply is described as the ability and willingness to supply a specific quantity of a product at a given price (Grant, 2002). The supply curve is upward sloping and varies directly with price. Price changes cause a movement along the demand curve while changes in the factors that influence supply cause a movement of the curve itself. A dynamic global economic environment with continued innovation leading to new and improved technologies entails ever changing demand and supply situations for a large number of goods and services on offer to consumers presently. This paper examines the changing demand and supply considerations for 10 such products with a synthesis as to whether demand/supply for/of them will increase/decrease in the years to come. Before we proceed, it is important to understand what is meant by demand and supply in economic terms. FACTORS THAT WILL BE AFFECTING the DEMAND FOR CONVENIENCE FOODS IN the NEXT SEVERAL YEARS Demand for convenience foods (like those manufactured by the...
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... 1. Identify 2-3 factors that affect Demand for Oil (should include the major global economies - US, China, Europe, Asia-Pacific). What is the effect of each of these major economies affect the Demand for Oil - evaluate if it's causing a SHIFT to the Right or Left for Demand. What do you think is the overall net effect on Demand for Oil? a. One of the factors that affect the Demand for Oil is TRANSPORTATION (both commercial and personal). The Demand for Oil is relatively dependent on the demand for transportation in United States and other advanced industrial economies. Cars, trucks, airlines, railways and shipping (freight and the like) accounted for 71 percent of total U.S. oil consumption in 2013, according to the U.S. Bureau of Transportation Statistics. 97 percent of Transportation Energy Sector’s needs were obtained from petroleum-derived fuels, including gasoline, diesel, jet fuel and fuel oil. Prior the oil shock in 1970s, almost half of U.S. oil demand came from power producers, and for heating homes, offices and factories. But following the sharp increase in oil prices, oil’s role in other parts of the economy was largely replaced by cheaper coal, gas, nuclear and eventually renewables, leaving oil as a transport fuel. Similar pattern was tracked in other advanced industrial economies. Oil demand has become inseparable from the demand for transportation services. b. ECONOMIC GROWTH has played a major role in determining the demand for oil. While...
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...were setup in Punjab, NWFP and Sindh. These units now cater around 80 percent of the total domestic demand of Pakistan. Paper Industry in Pakistan is important as it has emerged and survived well over the years. About 70% of the paper units are in Punjab, 10% are in NWFP and the rest 20% are in Sindh. Punjab has the greater proportion as it has the higher availability of underground water as well as wheat straw which is the prime raw material in paper production. At present there are around 100 organized and unorganized paper production sectors in the country (Anon., 2014). Paper Production involves process innovation which compels the companies to constantly improve their production technologies involved in the manufacturing processes. The big companies in the country like Packages and Century Paper & Board Mills are well involved in improving their product through spending great...
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...the computed elasticities for the business in terms of short-term and long-term pricing strategies. Provide a rationale in which you cite your results. Price Elasticity is -1.19, a 1% increase in price reduces quantity by 1.19%. The demand for this product is elastic and higher revenue may discourage consumers. Cross-price elasticity is 0.68, a 1% increase in the price of the competitor’s product will result in an increase in the quantity demand of the product by .68%. This shows inelastic conditions between the product and the price of the competitors therefore the competitors is not an issue because their price will not affect sales Advertisement-elasticity is 0.11, a 1% increase in advertising expenditures increases the quantity of good sold by 11%. Therefore, demand is rather inelastic to advertising. Advertisement is not always a sure thing to increase revenue. It could have an adverse action and to lose customers Income-elasticity is 1.62, with a 1% increase in income the demand will rise 1.62%. The firm can decide to increase price if cost of living increases. In regard to the microwave oven the elasticity is 0.07, a 1% increase in the number of microwave ovens would increase the quantity of demand by 0.07%. Therefore, the demand is inelastic in this case Recommend whether you believe that this firm should or should not cut its...
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...shipments, which increased supply; but conversely they where spending even more when it came down to the unplanned advertising. This spending even led them to overcompensate the budget and extreme reduction in sales in unsuccessful quarters. This all stems from their use of the sales forecast. The overall problem with Harmon was not only its misspent money in advertising but also its dependency in the sales forecast. Their business was basing future sales on past sales and not quantity demanded. Demand forecasting is a way they could determine what the demand is for the product they are trying to sell. They should focus on the demand they are not obtaining from their competitors. Using demand to dictate supply for the company could be useful for predicting the sales price, but they also have to acknowledge that supply and demand may be cyclical. There might be erroneous reasons for why sales may decrease that they will not be able to predict. The company already acknowledges events when the supply of Harmon food is reduced. They should focus on reducing their advertising costs when they know that the product is not in high demand at that time. They have focus highly on the supply of their product with little acknowledgement of the demand for their product. Even when observing the factors that affect sales, they focused on internal factors that affected supply. This seams to be a consumer driven market, and they are focused on the supply side. 2. What factors do you think affect...
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...Contents 1. Introduction 3 2. The evolution of house price in the UK and the factors affecting 3 supply and demand 3. The price and income elasticity of housing demand 9 4. Literature 11 1. Introduction The aim of this study is to explain the changes in the prices of houses by shedding light on factors affecting the demand and supply of houses in the UK. Firstly, we will look at the evolution of house prices in the UK since 2006 and examine relations between house prices and output, employment and mortgage interest rate. Also, supply of houses will be discussed by noting changes in the number of new houses and factors such as land cost, building cost. Then, in the next section we will proceed to examine the factors affecting the sizes of different elasticity of demand 2. The evolution of house price in the UK and the factors affecting supply and demand Over the last four decades, the UK housing market has been subject to boom/bust cycles and Stephens (2011) indicates that UK has one of the most persistently volatile markets in the world. Especially, since 1997 there has been a record growth in UK house prices. The above chart indicates that there are significant fluctuations the in UK housing market. House prices experienced steady growth during both 2006 and 2007 and reached their peak in late 2007. As the end of the 2008, the average house prices...
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... 2013). Once you are knowledgeable of your desired product, the scientific and technical way to manufacture it and the type of business venture you are planning, as well as the location of your plant, you can start looking into the license and permit requirements of the government (Starting a Plastic Manufacturing Plant, 2013). Any transaction has two dimensions, namely a demand and a supply (http://www.buzzle.com/, 2013). In any market, the number of units of a commodity that a consumer has the will and ability to pay for becomes the demand for that particular commodity in the market and any producer that has the will and ability to produce those units, becomes the supply (http://www.buzzle.com/, 2013). It is not necessary that the demand and supply volumes will match (http://www.buzzle.com/, 2013). The aggregate demand and supply analysis is based on this difference between the demand and supply forces (http://www.buzzle.com/, 2013) The demand for a good or service is defined as Quantities of a good or service that people are ready to buy at various prices within some given time period, other factors besides...
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...Economic Factors affecting the demand, Supply and Price of a commodity Introduction: Supply and demand are two important concepts in economics and supply and demand are considered to be the backbone of a nation’s economy. Demand is generally referred to as the quantity of product or services required by the consumers. The quantity of product or services referred to and the volume of product the consumers are ready to buy at a specific price. The demand relationship is generally referred to as the relationship between the price and quantity of products or services demanded nu the consumers. Supply generally represents the how much product or services a market can offer to the consumers. The product or services supplied refers to the amount...
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...Demand Estimation Stacy D. Lucero Strayer University April 28, 2015 Abstract By using data from the month of April from 26 supermarkets around the country that sells our low-calorie, frozen microwavable dinners we are going to discover which independent variables have the greatest effect on the demand of our products. We are also going to graph a demand and supply curve in order to more accurately forecast our demand. Demand Estimation As an analyst for the leading brand of low-calorie, frozen microwavable dinners my boss has asked me to produce a demand estimation using existing data. We are trying to forecast how to price our products to increase our sales by taking independent variables and estimating how elastic they are in relation to our products. We are also going to determine our demand and supply curve to further our knowledge for more accurate forecasting. Elasticity for Independent Variables We wanted to see how elastic the demand for our product is by using data from 26 supermarkets around the country for the month of April. When referring to the elasticity of demand we are trying to determine if prices changes to our product will help us to sell more of our dinners. To do this we used a regression equation. We then computed the elasticity’s of several independent variables that would have an impact on our sales. The independent variables that we used were the price of the competitor’s product, the per capita income of the area nearest the supermarkets...
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...Current Market Conditions Competitive Analysis Principles of Microeconomics ECO 365 David Norcross April 13, 2015 Current Market Conditions Competitive Analysis In this paper, Team A is participating in a strategic planning group creating a new product at General Motors. The following is a competitive market analysis on the potential of our new 2016 Chevy Volt’s success. We will be focusing on our competitor Toyota and their Prius lineup. Additionally, we will summarize our target consumer and current market conditions. Then we will cover variables that weigh on supply, demand, and equilibrium prices. Next, we will consider the pros and cons our firm faces while identifying the effect on our competitiveness and long-term profitability. Then, we will evaluate factors that influence fixed and variable costs. Lastly, we will provide recommendations on how GM can grow their profits and increase their competiveness. The Product The Chevy Volt was a concept designed by Bob Lutz Jon Lauckner of General Motors ‘GM’ in 2006 to overcome many of the limitations of pure electric vehicles while retaining many of the beneficial elements. The purpose of this car was to leap-frog the technology of the Prius hybrid. The theory of this concept was a car that would be able to drive on electricity for the first forty miles, and then a generator would run gasoline to extend the range of the car. In 2010, the production version was able to achieve 35 miles on electric and average 37 miles...
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...higher fuel efficiency standards that will decrease consumption even further in the future. The changing consumption pattern studies falls under microeconomics. Microeconomics is a social science that deals with the scarcity of resources by examining how supply and demand affects who gets what and at what price. In a free market economy, such as ours, the forces of supply and demand are expected to act freely, such as the equilibrium price is determined by the intersection of the supply and demand curve. Various participants in the markets do interfere with free markets abilities to operate without interference, such as the government and other various parties, which causes prices to become distorted. It is microeconomics that studies the reasons for these distortions and other effects. The changing consumption patterns of consumers of gasoline, affects the supply and demand of other related goods as well. The decreasing demand of gasoline can cause an increased supply in the market. A decrease in the demand of another commodity (substitute) can contribute to an increase in the supply of gasoline available in the marketplace. A number of factors will contribute to the supply and demand of gasoline. These factors are affected by...
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...Microeconomics and the Laws of Supply and Demand ECO/365 – Principles of Microeconomics 3/23/2015 Instructor: Microeconomics and the Laws of Supply and Demand The Supply and Demand simulation was to act as GoodLife Management property manager for a fictional town, Atlantis. This company manages about seven apartment complexes in the town of Atlantis. In this simulation the property manager was in charge in adjusting the monthly rental rate of GoodLife’s two-bed rental apartments as well as the quantity of apartments supplied based on the market trend. Many factors, such as personal preferences, income, economy, and rental rates influence the supply and demand for apartments. The ratio of vacant and occupied apartments is affected by each of these factors. A carful evaluation is vital when making decisions about supply, demand, and price, as well as a regular monitoring in order to remain competitive in the rental market. The first simulation had the objective of determining the two-bedroom apartments’ monthly rental rate for on provisional leases. Therefore, the rate for vacancy should be decreased to at least less than 15%, while the revenue should be maximized. When the rental rate of the apartments decreased and the demand increased, the vacancy rate decreased as a result. The simulation showed that as the rental rate is lowered the initial revenue increased, and reaching a maximum point at a specific rental rate. This then made the demand decrease. The solution is to...
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...Supply and Demand Simulation Summary In the city of Atlantis, there are several issues dealing with macroeconomics and microeconomic principles that affect the supply and demand equilibrium. The simulation attempts to teach the student about demand and supply shifts or curves that in real life fluctuate with the needs and availability of what people desire and suppliers offer. The apartment rental company, GoodLife, employs the student as a manager who is responsible for making key decisions that affect the economy of Atlantis. The simulation positions the student to learn from his or her experience by showing the affects of their decisions. According to the simulation, Atlantis is a small city with adequate parks and easy access to freeways and highways. The city is well maintained in such a manner that it is considered desirable and encourages residents to be engaged in outdoor activities. In addition, pollution or crime is very low which drives a high demand for population increase. Apartments and detached homes are kept in good condition. Microeconomic Principles Microeconomics according to investopedia.com, is the branch of economics that deals and analyzes the market on an individual basis, of individual consumers, and the relationship between the buyer and seller and those factors that influence the choices made between the two (Investopedia, 2014). In the simulation of supply and demand the influencing factors are the availability of apartments to be rented; moreover...
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