Video on demand

can choose to give more chips at the same price, drop the price of chips, or keep the price the same in case of future price rises. 3. Supply and demand Two of the most important factors affecting your price are supply and demand. 10. Supply. The amount of a product or service that businesses provide at a given time and a given price. 11. Demand. The amount of a product or service customers are willing and able to buy at a given time at a given…

Pareto optimality is a tool used by normative welfare economist who measures welfare in terms of preference satisfaction. This tool is used for assessing social welfare, resource allocation and to analyze public policy. It was a principle proposed by Italian economist and sociologist, Vilfredo Pareto in order to make high levels of inequality justifiable. An allocation is said to be a Pareto improvement if no alternative allocation could make at least one person better off while not making…

Consumerism. The drive which makes us feel like we need everything, no matter what the eventual costs and problems would create. “Swollen Expectations,” an article that looks into the effects of consumerism and different ways it has changed our lives, claims that our generation sets higher material expectations than any other generation. Some will argue that this isn’t the case, and that our world is changing for the better. However, I would disagree with those arguments. After discussing the…

Intertemporal preferences describe the way consumers make decisions between how much food they would consume today versus how much food they would consume tomorrow. The consumption of today would influence the consumption of food tomorrow. Some basic assumptions for intertemporal preferences are transitivity, consumer prefer more over less, and consumers can choose between two alternative streams (today versus tomorrow). A decision requires a trade off by the consumers between costs and benefits…

Marginal Utility underlies the Law of Demand because it includes the additional utility that can be received by a consumer. Consumers want to receive the maximum utility of a product and this creates the Law of Demand. 4) Define and explain Elasticity. Be sure to explain any terms. Elasticity is how economists measure a good’s sensitivity to a change in price or quantity. It answers the question of “does the price of this product affect its demand?” Luxuries tend to be elastic while…

Since individuals had higher incomes than they had the ability to demand more luxury goods. Individuals did not need to spend the majority of their incomes on goods to survive, and could buy luxury goods. Well according to Says Law of supply creating its own demand, the merchants and the artisans supplied a good that at first had a high price due to a low supply. Since all firms are profit seeking, individual will…

This article discusses how the Korean government has decided to impose indirect taxation on cigarettes in order to lower smoking rates in Korea. Cigarettes are a demerit good that creates negative spill-over effects like ‘premature deaths’ and ‘financial issues’. The market for cigarettes is an example of market failure because resources are put into producing cigarettes instead of products with positive externalities to the society. (Allocative inefficiency) Negative…

South African Uber marketplace though considering the nature of interaction between suppliers and consumers, the pricing structure of Uber, how Uber addresses peak and off peak demand periods and the effect of substitutes and compliments in the Uber marker. The price mechanism refers to the system whereby the forced of demand and supply determined the prices of goods and services, and the changes therein. Nature of Interaction between Suppliers and Consumers Uber operates through the Uber mobile…

developing student grant and loan programs) might have helped to save the earnings mobility from expected decline. The inequality has been growing not due to some purposeful policy but due to natural changes in the industry that called forth larger demand for qualified workers. At the same time, Autor does not deny that efficient public policy could be helpful to decrease the inequality in the US. The measures he considers the most beneficial are those that can cultivate the skills of the next…

through the interaction of the demand for labour, and the supply of labour. The key concepts of the neoclassical school of thought include: Work and Leisure, Human Capital, Marginal Productivity Theory, Labour Demand and Supply, Elasticity, Flexible Wage Models (Ross, 2009: 13). The elasticity of labour demand measures the responsiveness of demand when there is a change in the wage rate. This is represented in the demand and supply curve. Graph 1: Supply and Demand…