Economics and Global Business Applications Essay

Elasticity of demand is a measure of responsiveness to a price change of a good or service. When demand is elastic, the percentage of a price change of a product will result in a larger percentage of quantity demanded (McConnell, p 77). It basically means reducing the price of a good service will result in a greater quantity demanded and an increase in revenue for the seller. When demand is inelastic, a change in price will result in a reduction of quantity demanded, which will then lead to a revenue decrease (McConnell, p 77). To demonstrate elastic and inelastic demand results, Company A sells 100 pens at $1.00 a piece each day, making their revenue $100.00. Company A then decides to sell their pens at $.50, which results in a total of 250 pens being sold. The total revenue from the price drop is $125, resulting in an additional $25.00; therefore the demand in this scenario is elastic. If selling the pens at the decreased price of $.50 would result in more pens being sold, but less total revenue, the demand is said to inelastic. According to McConnell, when demand in unit elastic, the percentage change in price and the resulting percentage changes in demand are the same. The change in price will not increase or decrease revenue. Cross price elasticity measures the response of demand to a change in price of another substitute or complimentary good (McConnell, p. 87). Substitute goods are goods that can be purchased in place of another good. Examples of substitute goods are soda (buying Coke vs. Pepsi), computers, and potato chips. A positive cross elasticity of demand means the increase of price in one good, for example Coca-Cola, will increase the demand of a substitute good, for example Pepsi. As the price for Coke increases, consumers are more likely to purchase Pepsi at a lower price, thereby increasing its demand. Complementary goods are items that are typically purchased in conjunction within one another. Examples are ringed binders and notebook paper, pencils and erasers, and potato chips and dip. A negative cross elasticity of demand in complementary goods means that the increase in price of one good, an example being potato chips, will decrease the demand for the complementary product that goes with it, the dip. Income elasticity measures the responsiveness of consumers to changes in their incomes (McConnell, p 88). Demand for normal goods tends to increase as consumers’ incomes increase and conversely, demand for inferior goods tends to decrease as consumers’ income increases. Demand is elastic where there is a large availability of substitutes. The reason for this as the price of a good increases, if there is a large amount of substitutes for this particular good, the consumer will choose the substitute. As discussed earlier, soda is an excellent example of this elasticity. Airline tickets are another example. As one airline raises its cost of a ticket or to even pay for a bag to be checked, a consumer will more likely choose a cheaper ticket or an airline that doesn’t charge for baggage over the original. If there is no (or a very limited) amount of substitutes for a good, elasticity is said to be negative. A price change in medication will not likely change the behavior of a consumer relative to demand since there isn’t a substitute to taking the medication. Household utilities are another example of a limited amount of substitutes. In discussing the proportion if one’s income devoted to a good concept, the household budget comes into play. In a given month, households pay for many different good and services. A change in price may or may not affect the households demand for those goods and services. Often, it is dependant on how much of the household budget is devoted to that good or service. Mobile phone service is an excellent example of a service that will most likely have a large amount of a household budget dedicated to it. A change in price in the cell phone service will most likely result in that family making a decision to change to a cheaper service, since that will have a large impact on their budget. On the other hand, that same household may purchase light bulbs each month. The amount of money dedicated to the purchase of light bulbs is so small, that a price increase will not likely affect the budget, therefore the family will not likely make a decision to change to a cheaper bulb. The concept of time when discussing demand is important. When a consumer has a large amount of time to decide on the purchase of a good or service, the elasticity is positive. Conversely, if there is little time, the elasticity is said to be negative. According to McConnell, and excellent example of this is gasoline for automobiles. Gasoline prices change daily and more often than not, prices rise. A family, who owns a car and is dependent on that car for work, etc, will not likely stop buying gas in the sort-term, because it is crucial to their everyday living. However, that family over a long period of time may decide to find alternate means of travel, decreasing their demand for gas. Using the graphs for elasticity of demand and total revenue, areas of elasticity, inelasticity and unit elasticity have been identified. Demand is elastic between the prices of $80.00 and $50.00, meaning the demand increases as the price decreases, resulting in an increase of total revenue. Between the prices of $50.00 and $40.00, the demand in unit elastic, meaning the percentage of drop in price resulted in the same percentage of increase in demand. Revenue remained unchanged in this price range. Between the prices of $40.00 and $0, the demand is inelastic, meaning the price drop has resulted in an increase in demand, but not enough to over come the decrease. Total revenue has been negatively impacted.

The Mount Pinatubo Case Study

case study mount pinatubo THE MOUNT PINATUBO ERUPTION 1991 the mount pinatubo eruption was the second largest eruption of this century and by far the largest eruption affecting a densely populated area. the eruption occurred at mount pinatubo in the philippines on june 15 1991. in march and april 1991 magma rising towards the surface from more than 30 km below pinatubo started making small earthquakes and caused small powerful steam explosion that opened three craters on the north flank of the volcano. thousands of small earthquakes occurred   and many tons of gas were also emitted by the volcano. rom june 7 to june 12 the magma reached the surface of mount pinatunbo. because of the gas pressure the magma erupted out with an amazing strength but did not cause an explosive eruption because it just formed a lava dome. on june 12 tons of gas charged magma reached the top of the volcano and erupted with the very first proper eruption. when even more magma reached the top the volcano er upted in a cataclysmic eruption on june 15. the eruption ejected more than 5 cubic kilometers of material. the ash cloud reached the height of 35 km in the sky. blanket of ash covered all the land around pinatubo. fine ash flew thousands of kilometers away reaching also the inidian ocean. massive avalanches of hot ash rolled down the sides of pinatubo. the eruption removed so much material from the volcano that the volcano collapsed and from a clad era of 2. 5 km. many hazards occurred with the volcano. the eruption produced high speed avalanches of hot gas and ash ( pyroclastic flows) giant mudflows (lahars) and a cloud of volcanic ash covering hundred of miles across. early 20 millions tons of sulfur dioxide were blown in the air and were dispersed around the world causing an increase   in temperature of around 0. 5 degrees. Mt ST HELENS ERUPTION mt st helens is a strata volcano located in the state of washinghton, US the eruption caused many hazards and many impacts on people e nvirmoent and economy. the earthquake on may 18 lead to a series of events:a 5. 1 earthquake was caused by the massive eruption the bulge of the volcano slid away, resulting in a huge avalanche of rock and mud that filled 24 squares miles of a valley. he eruption real eased a massive cloud of ash and pumice. the effect of the eruption also included: the volcano was reduced of 1300 feet, ash fell miles away from the eruption, the eruption lasted over 9 hours,. around 60 people lost their lives . over 250 square miles of land were destroyed by all the eruption hazards. countless animals were killed. as in all the volcanoes the first signs of eruption were given by an increase in small earthquakes near the volcano area. this showed that the pressure inside the volcano chamber was increasing. oon lines of weakness were created by the earthquakes on the top of the mountain. earthquakes were many especially under the north flank of the volcano. in fact the first eruption was from the summ it rather than from the flank. on the 27th of march this small eruption kept going. the volcano was mainly gas and ash and a small cloud of material was sent up over the cone. this stage was a Vulcanian type of eruption. but because the size of the eruption was small the ash fell down on the ground close to the summit and the main effect was simply to blacken the snow fields. he cause of these small eruptions was probably water from ice fields ending in the hot rock below and transforming suddenly into steam, throwing materials around. as the days went by a large bulge started forming across the north flank , about 2km across, separate from the central vent. it showed that the material blocking the central vent was stuck fast and that the magma was seeking a way out through the north flank. the earthquakes had weakened all the north flank more than any other part of the cone. on may 18 at 8 a. m the entire north flank of the volcano dropped down in a massive landslide of 2 cubic kil ometers of rock. ow with nothing to hold in place the magma and the gas , the gas rich magma exploded in a gigantic eruption. in fact the landslide was shattered in many parts by the explosion so that a mixture of rock fragments and gas was formed. this type of eruption was now a pelean type, and the pyroclastic flows were able to flow 250 kmh. part of this pyroclastic flow went near by spirit lake throwing out the water entirely from the lake. the blast demolished the huge dorset that lay on the north side of the volcano, leveling everything over an area of 550 square kilometers. lose to the volcano the blast of the explosion was so strong that trees were simply blown away. in total some 10 millions trees were destroyed. ash was deposited miles away and the town of yakima was covered in ash. in the following days of the eruption very sticky laval began to flow into the new crater, building up a lava dome on the crater floor. all the snow and glaciers on the mountains were turned in to steam and they were now coming back on the ground as torrential rainfall. the rain swept most of the ash in the nearby rivers , causing flooding and at the same time silting them up.

The impact of the Bretton Wood Institutions on Human...

Using a country of your choice, discuss the impact of the Bretton Wood Institutions on Human Development in Sub-Saharan Africa. Introduction The Bretton woods institutions are the International Monetary Fund (IMF) and the World Bank. They were setup at the end of the Second World War in order to rebuild the devastated post-war economy and to promote international economic cooperation. The main focus of the IMF is to maintain exchange stability by harmonising its members’ monetary policies1. The aim of the World Bank, on the other hand, is to advance reconstruction and promote longterm economic growth in less developed countries2. Ghana started to work with the IMF/World Bank in the sixties. Since then most of its governments,†¦show more content†¦On top of this a so-called ‘Cash and Carry’ policy, where the patients cannot be treated unless they have paid for all costs, is practiced in most hospitals and clinics in Ghana.9 As for education, social spending cuts mean that there are fewer funds available for schools, facilities, equipment and teachers. This lack of funds has led to an increase in class sizes, increase in school fees, and a drop in the standard of public education.10 This is particularly bad for the poorest, whose parents cannot afford to pay school fees for their children. In order to reduce government spending, the IMF/World Bank prescribe the reduction of wages in the public sector and cutting of subsidies (on food, petrol etc.). However, the reduction in subsidies has led to a rise in commodity prices. The cutting of subsidies on rice cultivation in Ghana is one example. The government once supported rice farming communities in the northern parts of Ghana so much so that they were able to produce enough rice to feed most of the population. However, cutting subsidies and opening trade barriers has ruined the Ghanaian rice farms, as they were unable to compete with heavily subsidised rice from abroad. Today as a result, Ghana imports most of its rice from Western 8 Colgan (2002), p.1 Kampfner (2001), p.1 10 Jauch (2009), p.1 9 Page 3 of 12 countries at higher prices.11 Higher prices on the one hand and lower wages on the other mean an overallShow MoreRelatedThe Impact Of Transnational Industries And Global Financial Institutions Such As The World Bank And International Monetary Fund2146 Words   |  9 Pagesessay aims to explore and critically analyse the impact of transnational industries and/or global financial institutions such as the World Bank and International Monetary Fund (IMF) in the sub-Sahara Africa. 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The Federal Emergency Management Agency - 1123 Words

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Outdated Political System Get Rid of the Electoral College

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Poem Of The Cid Cultural Heroism Essay Example For Students

Poem Of The Cid Cultural Heroism Essay A monologue from the play by Pierre Corneille NOTE: This monologue is reprinted from The Cid. Trans. Roscoe Mongan. New York: Hinds Noble, 1896. DON RODRIGO: Pierced even to the depth by a blow unexpected as well as deadly, pitiable avenger of a just quarrel and unfortunate object of an unjust severity, I remain motionless, and my dejected soul yields to the blow which is slaying me. So near seeing my love requited! O heaven, the strange pang! In this insult my father is the person aggrieved, and the aggressor is the father of Chimene! What fierce conflicts I experience! My love is engaged against my own honor. I must avenge a father and lose a mistress. The one stimulates my courage, the other restrains my arm. Reduced to the sad choice of either betraying my love or of living as a degraded man, on both sides my situation is wretched. O heaven, the strange pang! Must I leave an insult unavenged? Must I punish the father of Chimene? Father, mistress, honor, lovenoble and severe restrainta bondage still to be beloved, all my pleasures are dead, or my glory is sullied. The one renders me unhappy; the other unworthy of life. Dea r and cruel hope of a soul noble but still enamored, worthy enemy of my greatest happiness, thou sword which causest my painful anxiety hast thou been given to me to avenge my honor? Hast thou been given to me to lose Chimene? It is better to rush to death. I owe to my mistress as well as to my father. I draw, in avenging myself, her hatred and her rage; I draw upon my self his contempt by not avenging myself. To my sweetest hope the one renders me unfaithful, and the other renders me unworthy of her. My misfortune increases by seeking a remedy. Come then, my soul, and, since I must die, let us die, at least, without offending Chimene! To die without obtaining satisfaction! To seek death so fatal to my fame! To endure that Spain should impute to my memory of having badly maintained the honor of my house! To respect a love of which my distracted soul already sees the certain loss! Let us no more listen to this insidious thought, which serves only to pain me. Come, mine arm, let us sa ve honor, at least, since, after all, we must lose Chimene. Yes, my spirit was deceived. I owe all to my father before my mistress. Whether I die in the combat or die of sadness, I shall yield up my blood pure as I have received it. I already accuse myself of too much negligence; let us haste to vengeance; and quite ashamed of having wavered so much, let us no more be in painful suspense, since to-day my father has been insulted.

Lord Of The Flies Essay - What Evil Lurks In The Heart Of Jack Essays

Lord Of The Flies Essay - What Evil Lurks In The Heart Of Jack? By Sean Rioux The novel Lord of the flies by William Golding presents and defends a theme that human nature is essential evil, and that a person removed from society will be allowed to let their evil instincts to manifest themselves as the person becomes increasingly savage. In this novel, Golding presents a character (Jack) who takes on and exemplifies this transition to savagery through out the course of the book as the evil inside him is set free. We see Jack, who at first cannot even kill a pig caught in the creepers, fall deeper in deeper into his savage ways as his killing of one pig, and his focus on the hunt turns to bloodlust. Then as it progresses his bloodlust begins to drive more than just the hunt for food as he leaves the dead as sacrifice for the beast, and he begins to turn his violence out towards the other boys, not just his pray. As a final decent into the evil that has consumed him the pray becomes one of the boys as Ralph is hunted with the intent to kill, sacrifice and possib ly even eat in an act of cannibalism. Before the evil began to grow in strength within Jack, he was a boy much like the others and like the others he found the concept of killing another living thing was not something easy to digest, but Jack learned. How ever hard it was for Jack to first kill a pig, spilling its blood on his bare hands, once he had first killed another living thing his path towards evil and savagery was well one its way. Early on in the novel we find Ralph, Simon and Jack walking through the forest when they come across a small pig tangled and caught in the creepers. Although Jack does have a knife with him his hesitation combined with the overwhelming reality of the situation keeps Jack stunned in his place and the pig escapes untouched. Jack swears to himself and the others that he will kill the next pig and this pressure to perform to prove himself a true and worthy hunter, leads him to obsession over the hunt. To Jack the hunt becomes more than just a game, or a source of food, it becomes his mission, duty and purpose on the island. When Jack makes his first kill he is spellbound by the power of life and death he exerts on the pig and is fascinated by the warm blood that pours from the wound he cuts to slit the pigs throat. Now the hunt has become something more for Jack as lust for blood begins to stir in him and the hunger for that feeling of power over another beings mortality grows. The others on the island begin to take interest and excitement in the hunt as Jack has provided meat, and the draw of the hunt and its bloody gore begin to stir in the other boys. This acts as a catalyst to the fall of the brittle society Ralph protects as the boys through Jack see the chaotic and savage game of the hunt and the prospect of more meat far more amusing and pleasing than even getting home. Jack denies the importance of the fire or shelters suggesting he is in complete obedience to the draw of the hunt, and the inherent evil that comes with. Cruel as slitting a pigs throat may at first seem to Jack, as the lust for blood that stirs in him begins to escalate, so does the power of evil deep within him, and for Jack the hunt becomes that much more lust full and primal. As Jacks grasp on the forgotten reality he left behind fades away, the new more savage ways of his tribe of hunters begins to shape a culture around the evil of the island. Jacks kills, as time passes become more and more brutal and without mercy as he begins to loss any morel structure or compassion for other living beings. When hunting one day he manages to track a sow with young still suckling at her