Microeconomics Research
Microeconomic Research
Over the last several years, real estate prices have been going through periods of tremendous volatility. This is because the marketplace has shifted and there is a change in the underlying levels of demand. To fully understand what is taking place requires carefully examining an article from the New York Times. During this process, there will be a focus on: the utility derived from a specific product, the changes that occurred with demand, shifts in supply and if it is elastic / inelastic. These variables will provide specific insights which are showing the underlying strengths, weaknesses and potential causes impacting the markets. It is at this point, when greater amounts of clarity will be provided highlighting the long-term effects of these transformations.
Consider the utility derived from a product or service mentioned in the article.
The main utility derived from the product is the need for consumers to purchase and own a home. It is one of the main drivers of economic growth. Any changes in the market conditions will have a direct impact on the GDP rate. These variables are important, in discussing the challenges affecting housing from stagnant demand. This is occurring through highlighting the shifts, which are taking place and its long-term impacts. (Hauser, 2011) (Weicher, 2012)
The demand for housing has declined severely since 2008. This is when prices began to implode and buyers became scarce. However, since this time, the markets have been trying to steadily improve. This is occurring with the Federal Reserve keeping mortgage rates low and the U.S. government supporting efforts to encourage buyers to enter the markets. (Hauser, 2011) (Weicher, 2012)
The changes to demand and equilibrium are illustrating, how the sector has continued to be stagnant. This caused prices to remain low and it has prevented a recovery in most regions. The net effects are that if supply stays the same, home value will be sluggish for a while. These variables are keeping valuations much lower in contrast with the historical average. (Hauser, 2011) (Weicher, 2012)
Describe what has occurred to change the supply of the product or service and its market and equilibrium prices. Assuming that demand remains the same.
The supply of new homes has been rapidly increasing. This is because foreclosures are high. At the same time, the lack of demand and current levels of inventory is causing builders to scale back on their projects. These variables mean that average…
Microeconomics on the Automotive Industry A Study of Elasticity and Demand Generation Global and national economic cycles have a direct effect on demand for the majority of durable goods consumers purchase, with the automotive industry being the most influenced by the cost of capital, interest rates, and elasticity of demand that varies by type of auto and market segment. The intent of this analysis is to evaluate how pricing strategies can be
Finally the vehicle price less customer incentives and rebates (cash and incentives) are used as the variables to complete the partial correlation. Table 2 Partial Correlation Descriptive Statistics Mean Std. Deviation TOTAL MIDSIZE SUV UNIT SALES Total Down Percent Financed Total Down (%) Trade in (%) Type of Sale Cash (%) Type of Sale Finance (%) Type of Sale Purchase (%) Type of Sale Lease (%) Vehicle Price Less Customer Cash Rebate Average U.S. Gas Price Table 2, Partial Correlation Descriptive Statistics shows the
Subway Microeconomic Analysis Subway Corporation: Microeconomic Analysis Subway is an American restaurant franchise that primarily sells submarine sandwiches and salads. Since its inception in 1965, Subway has blossomed into one of the world's most successful franchises, with 35,015 restaurants in 98 countries as of August 2011 (Subway, 2011, p.1). Subway restaurants have been consistently ranked in Entrepreneur Magazine's "Top 500 Franchises," and in March 2011, Subway surpassed McDonald's in its ranking of
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Value of Pharmacist's Services What is the current level of compensation for pharmacists in the United States? The position taken on this paper is that the pharmacist in the U.S. is earning very close to what he/she should be earning based on patient needs and services provided. The compensation for a pharmacist, in other words, is basically fair, with only a slight adjustment needed (perhaps $10,000 more a year) in the
Nevertheless, the company needs to move on its own as well in a continuous process of internal reform and different approach to the market. It is clear than many of the automobile producers, Ford included, have based so much of their production activity on large vehicles, adapted to the then-necessities of the U.S. market, but nevertheless unsuited for the economic trends that saw high oil prices and an increasing concern
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