Economics
In order to understand the ways that different changes in the external environment will affect the demand for milk, some assumptions need to be made with respect to the milk market. We know that demand for milk will increase as wealth increases, which is the result of milk being something of a luxury item (Arnold, 2007). This means that there is some degree of correlation between wealth and milk consumption, and that implies that if wealth declines, milk consumption will also decline.
We also know that demand for milk is somewhat price inelastic. When prices rise, people still pay them (Dohery, 2007). This is the result of two factors. The first is that there is a baseline demand for milk that is not going to be affected by price. The second is that the demand for milk is affected more by the wealth of the purchaser than the cost of the milk. We will also assume that there are substitutes and complements for milk. There are many alternative milk products, like soy milk or rice milk. These are not perfect substitutes, however. Many milk buyers will not see these as viable substitutes, just as many vegetarians and vegans will not see them as perfect substitutes for milk, as they would not normally drink milk anyway. As well, there are complementary products, one of which would be cookies. In considering the affect of complementary products on the demand for milk, both the relationship between the demand for the complementary product and the cross-price elasticity of demand with milk need to be taken into consideration.
If more people start drinking soy milk, some of these people will be people who would otherwise have consumed milk. This should have the affect of reducing demand for milk, as fewer consumers are consuming milk, and some who remain milk consumers are drinking less of it. This is because soy milk is a substitute (albeit an...
Economic Order Quantity Analysis: Management of Emergency Food Provision by NGOs When ordering supplies, managers of both for-profit and not-for-profit organizations must answer the deceptively difficult question: how large an order should my organization place? The Economic Order Quantity (EOQ) analysis method gives an accurate picture of the variables involved in making order quantity decisions (Finkler, 2009). Some organizations like food pantries, for example, may not have the flexibility to adjust some
For one reason, the super rich are some of the biggest political contributors, and so, it pays Congress to ensure their continued support and fiscal maintenance. He also uses economic theories and trends to illustrate his point and make the text more credible and believable. Throughout the book, the author shows not only that he deeply understands his material, but he has the ability to explain it so most readers
The most prominent downsides of globalization are succinctly revealed below: the populations in the highly developed economies loose their jobs as the corporations outsource positions to more cost-effective regions the populations in the less developed economies are exploited by outsourcing corporations companies that outsource transfer quality responsibilities to other countries, meaning that the quality of the final product could be compromised diseases are more rapidly transmitted from one region to
Economic Policy for an Imperfect World" by Karen I. Vaughn published in "Southern Economic Journal," Vol. 62, Issue 4, 1996 After the collapse of the Soviet Union it has become evident that market economies are necessary for producing wealth. However, the case for "free markets" is far from settled as those looking for an alternative to central planning usually consider "regulated market economy" as the solution. Hence the debate about
Economics/Politics Portfolio on Various Economic and Political Concepts The Industrial Revolution What was Changed by the Industrial Revolution How the Revolution Changed the Economy Examples from Past and Present (1900's & today) The Industrial Revolution, a multi-decade event that took place in the 19th century (1820-approx. 1870), completely transformed the way goods were produced across two continents. Prior to its start, which took place in the UK, and its continuation, especially focused in Germany and
Producers do not want to produce too much, lest there be waste. Consumers do not want to spend too much, because their resources (for most people anyway) are inherently scarce. Hayek makes the point about there being different types of knowledge. In his free market economy free from centralized planning, he argues that each individual has different knowledge -- each specializes. This allows the millions of people who are making
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