Supply and demand

the economy needed to produce 10 more boats they would have to sacrifice 10 cars in order to do so. The thing that is lost in order to produce more of something else is called opportunity cost. 2. How much to produce: This is determined by consumer demand for a…

Have you ever gone through your day-to-day routine, and wondered if other countries around the world are able to utilize some of the basic necessities that we take advantage of? As I was getting ready for my day today I found myself thinking about shampoo. Does the rest of the world think of shampoo, as a basic hygiene tool, that everyone has access to? In my paper, I will take a closer look at different areas of the world, and different coulters to see how and if they use this product, so many…

Walmart is one of the largest multinational corporations, consolidated revenue reached $485.7 billion, an increase of $9.4 billion, or 2.0 percent. Currency exchange rate fluctuations negatively impacted revenue by $5.3 billion and constant currency revenue was up $491 billion. E-commerce sales globally rose approximately 22 percent for the year, to $12.2 billion (Walmart Inc., 2016). Walmart has had a positive and negative effect on the community. The corporation can sell their merchandise at a…

product. So in this case, we can say that the bistro is practicing price discrimination, because many people go to restaurant for dinner than lunch and according to the law of demand, when the demand increase, the price also increase. 4-Social cost of a monopoly refer to a situation where a monopoly who has control on the supply can charge the highest price that consumers are willing to pay. This situation usually occur when there no substitute for a product. In monopoly, the firms usually make…

are no barriers to entry and because there is perfect knowledge. The effect of this entry into the industry is to shift the industry supply curve to the right, which drives down price until the point where all super-normal profits are exhausted. If firms are making losses, they will leave the market as there are no exit barriers, and this will shift the industry supply to the left, which raises price and enables those left in the market to derive normal…

Determinants of migration Different factors affect migration which includes economic social and ecological consideration, which are affected by individual’s perceptions and behavior. This factors operate together in order to push and pull migrants (Makonnen, 2006) 4. Economic factors Economic factors are often regarded as the major motivation for migration. The main economic factors are the search for employment. Population pressure on land rural poverty, biased development policies and…

“invisible hand in his world renowned economic novel “The Wealth of Nations.” Smith explains the “invisible hand” as ‘the subtle market force that helps the supply and demand of products in a free market excel.’ In summary, the “invisible hand” is a result of people pursuing self interests that indirectly help keep an efficient supply and demand in free market trade. The most important idea that the “invisible hand” proves is that when people tend to naturally help without incentives, the help…

Recently there has been a pervasive discussion about wage inequality, particularly raising the minimum wage. Many argue that fifteen dollars per hour or even the Presidents ten dollar ten cent minimum wage is too high with reasons such as small businesses will lose profit and close, people will have no incentive for higher education, and the overall elimination of jobs. Past arguments like these against minimum wage have been recycled since the passing of the Fair Labor Standards Act of 1938.…

Income inequality is a big issue in socioeconomics justices, as always. While the U.S total personal incomes are growth higher, the income gap is getting wider, especially for those who are making minimum wage. Among the government’s efforts to narrow the income gap, minimum wage seems the only solution. In his final State of the Union address on January 12th, 2016, President Obama has proposed and asked the Congress to raise the federal minimum wage to 10.10 dollars an hour and indexing it to…

elasticity of demand when the price of an ice cream cone rises from $1 to $2. The percent change in quantity demanded would equal: 600/ (3000 + 2400)/2 x 100 = 600/2700 x 100 = 22.2%. Then there will be a change in percentage in price: 1/ (1 + 2) /2 x 100 = 1/1.5 x 100 = 66.7%. The price elasticity would equal = 22.2/28.6 = .33 b. What does this estimate imply about the price elasticity of demand for ice cream cones? This implies that ice cream cones price elasticity of…