Supply and demand

Freakonomics is a book about the exploration of prominent issues in society and going against the conventional thinking in regards to these issues. The book declares connections between two topics that are normally not related to each other. For example, comparisons between sumo wrestlers and teachers are made that eventually connect back to economics, in this case incentives. Questions that are usually not asked are examined in the book using evidence; the questions talk about issues seemingly…

1.1 Overview of “The world is flat” by Thomas. L. Friedman Friedman has divided the globalization history into three important parts as Globalization 1.0(1492-1800), Globalization 2.0 (1800-2000) and Globalization 3.0 (2000 onwards) where the world shrank from large to medium (country globalization), medium to small (companies globalization) and small to tiny (individual globalization) respectively. The author has stated the 10 factors that have played a crucial role in flattening the world as…

Abstract The relationship between money and happiness is surprisingly weak, which may stem in part from the way people spend it. Drawing on empirical research, we propose several principles designed to help consumers get more happiness for their money. Specifically, we suggest that consumers should (1) buy more experiences and fewer material goods; (2) use their money to benefit others rather than themselves; (3) buy many small pleasures rather than fewer large ones; (4) spend more time with…

or even supply management. Bowersox (2010), states that purchasing has been traditionally adversarial and transaction focused, thus primarily interested in the product price. Nowadays, on the contrary, a shift towards the lowest cost of ownership occurs. This implies that purchasing will have to consider all the costs that will be charged during the lifetime of the products purchased. In addition, Monczka, et al. (2011) made a distinctive difference approach between purchasing and supply…

independent variables considered in the model all the variables except Total Awareness Score on oils are found to be significant. TAO is insignificant may be due to an almost similar awareness that exist among respondents. As we expect from Law of demand price is found to be negative. Out of all these significant variables, the relative importance was examined using standardized coefficients. Household size is an important variable followed by Ratio of oil expenditure to total food expenditure.…

firms are price makers, we are talking about big businesses that control the whole market, and the barriers to enter their industries are very difficult. Now the firms in long-run at the monopolistic competitors market behaves the same way also the demand in the long run is very responsive to their price changes, when a firms tries maximizing its profit by producing goods to the point where the marginal revenue equals its marginal costs,…

Why Are Gas Prices So High? Gas prices are too high, and some people cannot afford to pay for them. Some of the reasons that they are too high, is because the oil companies that produce the gasoline, are lowering production, leading to higher prices, because there is less of it to go around. Instead of using gas to make cars go, we should use something else that acts almost the same as how the gasoline works for the car. Gas prices may seem lower than they have at a different time, but are…

Minimum wage was implemented in 1938 to ensure a minimal standard of living. Since 1938 minimum wage has been raised several times. Minimum wage was established under the Fair Labor Standards Act. The Fair Labor Standards Act is enforced by the U.S. Department of Labor. There are federal and state minimum wages; however, the federal minimum wage supersedes state minimum wage. Setting a minimum wage is thought to help the economy and employment. However, many economist will argue that minimum…

According to Olney’s truth table, if a premise is true but the conclusion is false, the argument is false. In the given argument, “If the federal government budget deficit increases” is the premise, and “there will be decreased long-run economic growth” is the conclusion”; therefore, if the long-run economic growth does not decreases when there’s an increased federal government budget deficit, the argument is false. The implicit assumption is if the government budget deficit increases,…

work. Companies that generate electricity for example will need to switch to a new way to generate electricity. Effect number 3, possible conflict between the consumers and the producers is possible. Producers might produce less oil so prices and demand will get higher. Producers might boycott products from some of the countries that consume. Oil will stop being sent to consumer countries like the United States,China,Japan,and India. My opinion about the article“In a Mideast upset by…