Induced demand

notion that people must be free from restraint as mush as possible. Economic Liberalism had as its main tenet the concept of Laissez-faire which means that the state should not interfere with the free play of natural economic forces, mostly supply and demand. According to Economic Liberalism government should have no power over restraining a persons economic liberty and should limit itself to defending the country, police protection for individuals and the construction and maintenance of public…

Start-up costs Canine Candy has start up costs which have run from when the idea of Canine Candy first started to when profit is generated by sales. Start up costs include, supplies, equipment, marketing and promotion. Supplies which are all variable costs include peanut butter, flour, baking powder, cellophane, string and paper. Equipment bought includes a dog bone cookie cutter which is a fixed cost. While marketing and promotion is how Canine Candy will be known by the customers not only in…

Yes market share does matter; because a company's market share is a portion of total sales in different regions depending on the market the company operates within. Therefore, if an organization offers $100 million worth of tractors a year locally, and the aggregate tractors sold in the United States are $100 million, the organization's US market share or tractors would be half. Market share also represents the rate of an industry or market's aggregate deals that is earned by a specific company…

If millions of people have volunteered to move to a planet similar to Earth scarcity and property rights would be best addressed in a top down fashion. In a centrally planned economy business leaders, or producers, will be impacted through the lack of artificial need. A centrally planned economy will affect the personal choices, of the consumer, all of their needs and desires will be met. The community is affected by the lack of overproduction and under consumption occurring in the market…

Furthermore, higher wages also acts as an incentive to work because the higher the wages the higher the hopes workers have of improving their condition and thus ignites their desire and motivation. Smith writes, “A plentiful subsistence increases the bodily strength of the labourer, and the comfortable hope of bettering his condition, and of ending his days perhaps in ease and plenty, animates him to exert that strength to the utmost.” However, the desire of bettering one’s condition can cause…

The policy group of Office of Secretary Les Singer has decided that we should let the market determine the prices for the gasoline distribution. The policy that we chose would be equitable to everyone (producers and consumers). In this policy, the price would be not too high and people can afford gasoline with the money they have, making the producers satisfied with the prices. This policy would be the best opinion because not only will people afford gasoline but they will be saving money and…

Rent is a fixed, committed cost because it does not change due to differences in activity levels. In other words, rent is always a cost that will be due regardless of business activity level. It is generally considered a committed cost because once you sign the lease you are committed to paying rent for the life of the lease (Walther, 2012). Property taxes on land and building are fixed committed cost due to the fact that it does not change as per stipulated tax period. This tax does not affect…

In monopolistic competition there is large number of small firms; in which each firm has relatively small market share, and each firm is sensitive to the average market price of its product. In Monopolistic Competition there are lots of buyers and sellers and has perfect information (buyers and sellers are able to see prices at which others are buying/selling), no significant barriers to exit or entry- anyone can join or exit, differentiated products - The products are similar but not identical…

Parking Reform is Possible The purpose of the article was to bring forth an argument that reforming parking was possible. The argument was based on research findings that were carried out between 1927 and 2008. The argument was based on considering the prices that curbs are charged for parking. According to ‘Goldilocks Principle of Parking Prices’,it was argued that the price for parking should be considered too high in situations where there are several parking spaces left unoccupied. On the…

Fear of the future is one phobia that every so often gets a grip of us all. Wilkinson continues to assert, "We look out into the future, trying our best to make wise decisions, only to find ourselves staring into the teeth of ferocious and widespread uncertainties. If only everything didn't depend on, well, everything else. How do we decide what kind of career path to pursue when it's not clear what industries will exist in 10 or 15 years? How do we plan our children's education when we can't…