PEAR Assignment #1
Cocktail Party Economics by Eveline J. Adomait and Richard G. Maranta discusses the main concepts behind economics using simple language and real life examples. Cocktail
Party Economics is divided into twelve chapters, each discussing a different topic related to the subject of economics. This essay will focus on Chapter 7- Demanding Clients (A
Venti Chapter) and it’s relation to the recent minimum wage increase in five Canadian provinces. Chapter 7- demanding Clients (A Venti Chapter) of Cocktail Party Economics, discusses the concept of demand and consumer behavior. Demand is defined as the “relationship between the price of a good and the quantity demanded of it when all other influences on the buyers’ plans remain the …show more content…
1
Several factors can contribute to a shift in a demand curve. These factors are known as
“Consumer Behaviours” and are divided into four categories, consumer preferences, consumer income, prices of related products and the number of buyers in the market.
The first factor is Consumer preferences, which are simply the different tastes that consumers have for a good. The second factor is the number of buyers in a market. “If the number of buyers in a market goes up, the demand goes up as well.” (Pg, 84)
The third factor is the price of related goods. Goods are said to be either substitutes or compliments. Increases in price of a good will increase the demand of its substitute.
However, increases in price of a good will decrease the demand for its compliment
The final factor is Consumer income. Consumer income is the amount of money an individual is rewarded after preforming a job once taxes and other expenses have been deducted from the amount. There are three ways the demand for a good can respond to a change in consumer income. A demand for a good can either increase or decrease as consumer income changes or remain the same as consumer income changes. Goods that react positively to an increase in income are called normal goods. Goods that do not
Cocktail Party Economics by Eveline J. Adomait and Richard G. Maranta discusses the main concepts behind economics using simple language and real life examples. Cocktail
Party Economics is divided into twelve chapters, each discussing a different topic related to the subject of economics. This essay will focus on Chapter 7- Demanding Clients (A
Venti Chapter) and it’s relation to the recent minimum wage increase in five Canadian provinces. Chapter 7- demanding Clients (A Venti Chapter) of Cocktail Party Economics, discusses the concept of demand and consumer behavior. Demand is defined as the “relationship between the price of a good and the quantity demanded of it when all other influences on the buyers’ plans remain the …show more content…
1
Several factors can contribute to a shift in a demand curve. These factors are known as
“Consumer Behaviours” and are divided into four categories, consumer preferences, consumer income, prices of related products and the number of buyers in the market.
The first factor is Consumer preferences, which are simply the different tastes that consumers have for a good. The second factor is the number of buyers in a market. “If the number of buyers in a market goes up, the demand goes up as well.” (Pg, 84)
The third factor is the price of related goods. Goods are said to be either substitutes or compliments. Increases in price of a good will increase the demand of its substitute.
However, increases in price of a good will decrease the demand for its compliment
The final factor is Consumer income. Consumer income is the amount of money an individual is rewarded after preforming a job once taxes and other expenses have been deducted from the amount. There are three ways the demand for a good can respond to a change in consumer income. A demand for a good can either increase or decrease as consumer income changes or remain the same as consumer income changes. Goods that react positively to an increase in income are called normal goods. Goods that do not