Introduction To Supply and Demand in Economics

Introduction To Supply and Demand in Economics Introduction to Demand Supply According to one of the microeconomic textbook from Oxford demand supply is the basis of economic of pricing that the prices are determined using the demand and supply concept. In other words, the demand and supply system is to show the dependence of demand and supply on price. Demand This session is the description of what is demand in economics. Joseph and Kamil (1996) stated that demand is the rate at which consumers want to buy a product. There is difference between demand and want, according to Oxford microeconomics textbook (2008, p.28) want is meant to have a desire or a wish for something while demand is the desire or need of customers for goods and services which they want to buy or use. When the product price that is high in the market, the demand will be low. When the product price is low in the market then the demand will be high as many consumers will be able to purchase the product if the product price is low. Law of Demand Law of demand is to explain that when higher the price of a good, the lower is the quantity demanded for that good. When the price is lower down, the quantity demanded is higher. Besides that, law of demand also explains there will be a negative or an inverse relationship between price and quantity demanded. Oxford microeconomics textbook (2008, p.28) stated that every individual and society practices the law of demand. Peoples will always buy more goods when the goods of the price is reduced. For example people will definitely buy more goods in a mega sales confirm to the normal season of the sale. This statement can clearly relates to on October 2, 2014 government increased the petrol and diesel price by 20 cent per liter as in line with the federal governments subsidy rationalization policy. The new retail price of RON95 will be RM2.30 and diesel will be RM2.20 per liter. When government increase the petrol and diesel price by 20 cent, definitely there are a lot of Malaysian consumers struggle with the price of it. Determinants of Demand Determinants of demand can be defined as when there is changes in price, quantity demanded will change. It is a movement along the same demand curve and when the factors other than price changes, demand curve will shift. Below are the information of the determinants of demand. Income: Income is define as the rise of the individuals income will lead to an increase of demand it is because income of a consumer can influence the purchasing decision of an individual. Rise of income will lead individual demand for more goods and services such as houses, cars and others. But when there is income unfavorable, definitely it will lead individuals to decrease their demand. Tastes and fashions: Changes in tastes and fashions of consumers can change significantly the demand for goods and services. Population or number of buyers: Demand of goods and services are all depends on the size of the population of buyers in the market. If there is a large population with a high rate of growth creates greater demand for the goods and services. Expectation: The event that consumer expect in the future will also give a impact on the demand it is because the higher the expected future price of a good, the current demand for that good will be higher and vice versa. Advertisement: Goods that have advertisement are normally goods with high demand. It needed the advertisement to create the awareness and attract the consumer to buy the goods and services when they are aware of the existence of the goods. Price of related goods: This to explain that demand for a good is affected by the changes in price of related goods. There are two categories which are substitute goods and complementary goods. Substitute goods: Substitute goods is define as the goods can be replace by another goods. For example, coffee and tea, chicken and pork and many others goods that can find a similar replacement. Complementary goods: Complementary goods are those goods that are used in conjunction with another good Supply Matt Johnson (2014) define supply as the total quantity of a product or service that the marketplace can offer. The quantity supplied is the amount of a product or service that the suppliers will be supply willingly with a given price. According to Oxford microeconomics textbook (2008, p.40) supply is defined as the ability and willingness to sell a specific quantities of the goods in a given period of time at particular price, everything else held constant. Law of Supply Under Oxford microeconomics textbook (2008, p.41) stated Other things being equal, law of supply states that higher the price of a good, higher is the quantity supplied for that good and lower the price, lower the quantity supplied. It is stated that the law of supply is a positive or a direct relationship between the price and the quantity that is supplied. Goods that sold by the seller will want to gain more profit, thats why goods are normally sell more at a higher price. Determinants of Supply Determinants of supply can be define as when there is factors and price of the good is constant, there will be change in supply. Below are the factors and how it can shift the supply curve. Cost of production: The change of supply will response to the factor of production such as labour, capital or land. The resource for production increased therefore cost of production will increase as well, thus it reduce the supply of the good. Price of related goods: Supply will be influenced by the prices of related goods such as substitute goods and complementary goods. When there is price increase of the substitute goods in product, the supply of the goods will decrease and vice versa. Expectation of seller: When the seller are expecting a higher price of the good in future, the supply will be smaller as for the goods and vice versa. Technological advancement: The technologies improvement have been the most important influence on the supply due to the innovations in technologies enable the producers to use fewer factors of product that will lower down the cost of product and therefore the supply will increase. Number of sellers: If the firms of supplying goods is growing large, then the larger the supply of the goods and vice versa. Government policies: Supply of the good will be affected if there is any implementation rules by various government policies such as taxes and subsidies. When the government imposed sales tax definitely it will caused higher cost of product and thus the supply will decrease. Government increased the price of petrol and diesel increased This is the case study that shows on 2nd October 2014, government have increased the price of petrol and diesel to 20 cents per liter as in line with the federal governments subsidy rationalization policy. The new retail price of RON95 will be RM2.30 and diesel for RM2.20 per liter. The assignment will now explains how does the changes will affect the demand and supply on Malaysian consumers. The demand of petrol As law of demand already explained determinants of demand can be define as when there is changes in price, quantity demanded will change. When government increase the price of petrol and diesel, definitely the demand towards petrol will decrease as it determinates the income of consumers is affected. Petrol price plays a big role towards the market, when price of petrol increase which means the market or society will be facing the increasing of inflation. Inflation occurs when petrol price increase it is because production line will need to increase their prices as well to cover up the petrol cost by delivering the products. According to a statement from DAP Malaysia, The government must realize that allowing the increase of fuel prices will create two- prong negative impacts. Firstly, it will cost more for car users and this will definitely affect a large section of the consumers, as a big population of Malaysian society owns a car. Furthermore, the price hike in fuel will have cascading effects and lead to increase of prices of other goods and services and thus contributing to inflation in our economy.Secondly, the higher cost of fuel will increase the overall operating cost of doing business in Malaysia. The supply of petrol Supply of petrol will not be a problem in Malaysia although the government increased the price of petrol. People will still need to have petrol for their cars. Therefore the supply of petrol will remain stable as there is a statement from the PKR secretary general Because the people are still paying prices higher than the market prices for unsubsidized fuel. The demand and supply curve for petrol The graph above is the demand and supply curve of the petrol as the demand of petrol will decrease as government do not make any changes for the petrol price. Kindly refer below for the symbol terms. S = Supply D = Demand P 0 1 = Price equilibrium Q 0 1 = Quantities demanded The demand of diesel Government also increase the diesel price for 20 cent per liter, the total amount of diesel is now RM2.20. The demand of diesel is same with the demand of petrol, price increase and demand will decrease eventually. The only thing that affected by the price of diesel is the production from the manufacturers as they will need to increase the price of production to cover up the production cost. The supply of diesel The supply of diesel will be maintain the same as the supply of petrol, government will not face problem in Malaysia although the government increased the price of diesel. Manufacturers will still needed diesel for production cost, therefore the total damage will only bare by consumers. The demand and supply curve for diesel The graph above is the demand and supply curve of the petrol as the demand of diesel will decrease as government do not make any changes for the diesel price. Kindly refer below for the symbol terms. S = Supply D = Demand P 0 1 = Price equilibrium Q 0 1 = Quantities demanded Conclusion for price of increasing petrol and diesel After the knowing of the effect of increasing petrol and diesel, Malaysia government should consider decreasing the price to a reasonable price where consumers are able to afford the price. Price of petrol and diesel increase will cause the inflation rate increase in Malaysia. Malaysia is needed to be remained competitive in the eyes of foreign investors. Introduction to Elasticity Elasticity in economics is important because it is a important concept to be mastered in order to apply the concept to the households, businesses and researchers as it is vital and very applicable in the daily life. Elasticity is the measurement of the magnitude of responsiveness of any variable such as quantity demanded or quantity supplied to the change to the determinants factor such as price and income. According to Oxford microeconomics textbook (2008, p.87) the value of elasticity can be measure by the graph below: Types of elasticity Below are the table of the types of elasticity: Price Elasticity of Demand The price of elasticity of demand is to measure on how much the quantity demanded of a good responds to a change in price of the good. According to Economics Online, price elasticity of demand shows the relationship between price and quantity demanded and provides a precise calculation of the effect of a change in price on the quantity demanded. To calculate the price elasticity of demand between two points on a demand curve, we will need a formula to calculate. Refer the graph below for the formula of calculating price elasticity of demand. There are also 5 types of the demand curve exist in price elasticity of demand that shown in Oxford microeconomics textbook (2008, p.89). Perfectly Inelastic Demand: Elasticity = 0 which defines as regardless of the price, the quantity of demand will remain the same. Inelastic Demand = Unit Elastic Demand = 1 which defines as the quantity demanded moves the same amount as the price moves. Elastic Demand > 1 which defines the quantity demanded moves proportionately more than the price. Perfectly Elastic = Infinity which defines when there is a small change in the price will lead to the huge change of the quantity demanded/ Price Elasticity of Supply The price elasticity of supply is the measurement on how much the quantity that supplied for the good responds to a change in the price of the good that computed as the percentage change in quantity that is supplied divided by the percentage of changes in price. To calculate the price elasticity of supply between two points on a supply curve, we will need a formula to calculate. Refer the graph below for the formula of calculating price elasticity of supply. Price elasticity of supply = There are also 5 types of the supply curve exist in price elasticity of supply that shown in Oxford microeconomics textbook (2008, p.95). Elastic > 1 defines as the quantity supplied moves proportionately more than the price. Inelastic Unit Elastic = 1 defines as the quantity supplied moves at the same amount as the price moves. Perfectly inelastic = 0 define as the regardless of the price, the quantity of the supply will remain the same Perfectly elastic = infinity define as when there is a small change in the price will lead to the huge changes in the quantity supplied. Cross Elasticity of Supply Cross elasticity of supply is the measurement on how much the quantity demanded of a good responds to a change in the price of another good where it will computed as the percentage change in quantity demanded of goods A divided by the percentage change in the price of goods B. Below is the formula of cross price elasticity Cross price elasticity of demand = According to the statement of economics export (Mike Mofatt, 2015) The cross-price elasticity of demand is used to see how sensitive the demand for a good is to a price change of another good. The high positive of the cross price elasticity will let us know that if the price of the good goes up and the demand for the other good goes up as well. A negative tells us just the opposite, that an increase in the price of one good causes a drop in the demand for the other good. A small value (either negative or positive) tells us that there is little relation between the two goods. Below are the interpretation of the degree of elasticity: Goods 1 2 Definition: Both goods are require to be paired up and related Example: Pizza Coke, A good pizza store that serves great pizza will generates demand for the drinks as well. Goods 1 2 > 0 = Goods 1 2 are substitute goods Definition: They are substitutes goods when there is price increase on the good and cause the demand increase for the good of others. Example: Replacing an iPhone 6 with a Samsung Note 4 will be better than replacing the iPhone 6 with a Samsung tablet. Goods 1 2 = 0 = Goods are not related goods Definition: The price of the good will not affect the demand for another good. Example: Ferrari, even if the price increase it will not related to the demand for another good. It has its own target market. Income Elasticity of Demand Income elasticity of demand is define as the measurement of how much the quantity demanded of the good responds to the changes of consumer income and computed as the percentage of change in quantity demanded divided by the percentage change in income. Below is the calculation of income elasticity Income elasticity of demand = According to the statement of economics export (Mike Mofatt, 2015) Income elasticity of demand is used to see how sensitive the demand for a good is to an income change. When there is high income elasticity, it will be sensitive to the demand for a good is to income changes. A very high income elasticity shows that the consumers income goes up and consumers will buy a great deal more of that good. A very low price elasticity implies just the opposite, that changes in a consumers income has little influence on demand. Below are the interpretation of the coefficient of income elasticity: Coefficient of Income Elasticity Degree of Elasticity Types of Good Ey = 0 Perfectly Inelastic Necessity goods Ey > 0 Elastic Luxury goods 0 Inelastic Normal goods Ey Negative elastic Inferior goods Table 1: Oxford microeconomics (2008, p.94) Conclusion for elasticity With all the research that has been done, elasticity do play a important role in economics with the measurement of responsiveness towards one determinant to the change in one of the determinants factor. Conclusion and recommendation With the research of doing this assignment I get to learn about the characteristics of useful economics information such as demand supply, law of demand supply, determinants of demand supply. Each of the characteristic of the economics information also will determine the usefulness. Through this assignment, I have know about the information of elasticity. There are four types of elasticity such as price elasticity of demand, price elasticity of supply, cross price elasticity income elasticity. I also learnt to how to draw different types of demand curve.

Midterm 2 Essays Essay

1) Ben-Hur is the last great film score in the tradition of the golden age until 1977. Describe the characteristics of the classical film score as exemplified in this film. Include a description of significant themes and scenes. (10 points) William Wyler directed a 1958 American epic historical drama film, Ben-Hur. This film is well known to be one of the greatest film scores reflecting in the classic traditions. The film portrays lives of two men (i.e., Jesus Christ and Judah Beh-Hur), in which the plot illustrates number of parallels and reversals. Rozsa utilizes modal harmonies and parallel chords to deploy the spirit of the Roman era. Throughout the film, he embraces traditional love themes for the three separate love relationships. Rozsa incorporates overall stylistic harmony by applying musical ideas that are associated with Roman, Hebrew, and early Christian. Furthermore, it can be seen that Rozsa chose many of the melodies to be modal. He also used parallel harmonies to maint ain the same pitch correlation from chord to chord and limits any possible sense of harmonic progression. For example, the first three chords of the score move in parallel motion where each pitch moves down a entire step and returns back to the original pitch. Throughout the â€Å"Redemption theme†, the overture plays a melody that implies the Phrygian mode. In the Christ theme and several of the Roman marches, the Western triadic chords can be heard. The score also displays a complex system of leitmotifs. The â€Å"Christ theme† plays an organ with a wavering sound where high strings with harmonics are often added. These combinations create a halo effect around the melody. In addition, the number three is an important symbol for Christianity due to the Trinity where it consists of three-note chords. Moreover, it can be seen through the Redemption theme that the first three pitches played are exactly the same as that of the Christ theme. It is interesting to observe the Friendship theme between Judah Ben-Hur and Messala contained with warmth while he also uses disturbing elements to foreshadow the Hate theme displayed by triton interval. During Ben-Hur’s desert march, chromatic melody strongly correlates to the Hate th eme. These musical melodies support for dramatic moods, settings, characters, and actions, which can be seen  throughout the film. Rozsa also uses significant orchestral medley to establish his principal themes during the overture and the opening credits. Most recognized and impressive is the powerful bass sound playing during the credits. In regards to the climax and resolution, Rozsa composes two musical climaxes (i.e., one for Christ and one for Ben-Hur). The Ben-Hur’s desert march consisted with chromaticism and dissonance underscoring the moment filled with bitterness. When Miriam and Tirzah gets cured after the storm, The Christ theme comes in with full orchestration. Throughout this film, we can see that Rozsa extensively uses music and exploits full range of orchestral colors as seen through general characteristics of the classical film score established during the mid-late 1930’s. 2) Psycho helps usher in the New American Cinema era. Using Psycho as a model, discuss the major changes to film music in the 1960s. (10 points) There were a significant transformation during the 1960s, where decline of Hollywood traditions and the rise of a new style initiated. Europeans influenced the way into the new era for the filmmakers in a global-scale. Innovative plots with uncertain beginnings and endings, unclear moral implication, and unusual plot lines started to emerge. We can clearly see that Alfred Hitchcock chose to shoot the film Psycho in black and white to signify the cold and empty atmospheric moods as well as to lower the production costs, which can be linked with the European imports. Bernard Herrmann supports Hitchcock’s visual and narrative effects where music is written for a string orchestra, where limited orchestral colors are prominent rather than a full symphonic ensemble. He correlated the usage of single tone color with the black and white cinematography. Herrmann utilized a unified score that is constantly dissonant. Although there are variation of mood from loving sound to the terror of the shower, all the cues are observed to be used with minor seconds and major sevenths. He also uses distinct sound using the â€Å"percussive-sounding strings† through deploying microphone close to the instrument to demonstrate the sound to be harsher, which can be seen as some of the new approaches that Herrmann accomplished through this film as the start of â€Å"a New American Era†. In addition, new approach in film scoring can be seen through the lack of contrast in a cue. When a cue starts, it stays consistent and repeats the mood with no varia tion where there are absence of shifts within a cue. Moreover, descending and ascending chords  of the Transition theme have an aloof characteristic with no display of emotions. This in return provides an overall disquieting mood to the story. During the Norman’s story, Hermann employs ostinato to maintain tension and discomforting sound of melody. 3) Discuss the growth of the various types of popular music in films from the late 1940s through the early 1970s. Please mention specific films, styles, and composers when you can. (20 points) Throughout late 1940’s through the early 1970’s, the growth of various types of popular music and trends are historically observed. Starting from postwar trends dating back from the late 1940’s where World War II delivered significant changes in filmmaking, which also had a huge impact on film music. During this time, pessimism and cynicism were two primary themes in films. It is clearly evident that there were three significant developments where music composed for Film Noir, the appearance of several outstanding scores reflecting the American nationalist musical style, and the resurgence of European centers. Film noir gave numerous unique characteristics consisted of one prevailing mood (primarily dark and pessimistic), minimal usage of musical cues, orchestration for small ensembles, predominantly low-pitched instruments (e.g., bass clarinet), focus on the lower registers of the strings, non-traditional orchestral sound, angular melodies, harsh dissonant harmonies, and the usage of jazz. Miklos Rozsa, one of Hollywood’s finest composers, earned much respect for film noir scores including his work through Double Indemnity and The Killers. In the late 1940’s, many of the excellent film scores reflected the musical style of American nationalism. Hugo Friedhofer created one of the most memorable score The Best Years of Our Lives, where he integrated many of the features of Copland’s American nationalist style. As for Aaron Coplan, he composed his last two scores for films The Red Pony and The Heiress. In the 1950’s, the American film industry suffered from decreasing revenues and increasing costs due to major competition from television industry. This in return made American filmmakers to respond with outputs of excellent films, which also had a major influence on the development in film music. The expanding role of popular music began in the early 1950’s. Newer forms of jazz (bebop) followed by its characteristics of hard accents, rapi d notes, and increased volume and intensity. Other trends in popular music in the 1950s are country and western, and rock and roll. Elmer  Berstein employs intense sounds of jazz along with traditional symphonic scoring through one of his first film scores, The Man with the Golden Arm. Dimitri Tiomkin, one of Hollywood’s veteran composers, brought a key innovation to film music when he incorporated a country and western song to High Noon. He also includes Leimotifs for the theme song, colorful orchestrations, and orchestra underscoring tension and action. A film, The Blackboard Jungle, introduced the rock music for the teenagers to rapidly adopt this exciting new kind of music in mid-late 1950’s. The birth of the blockbuster occurred in 1956. In films Around the World in 80 days and The Bridge on the River Kwai were both seen with the application of popular melodies, that is, walz tune and a British march. Adolph Deutsch employs traditional symphonic scoring in the film Something like it Hot. He liberally integrates popular music to underscore the fun where it includes musical, scurrying saxophone line, and use of the tango. In addition, a film Touch of Evil: Beginning in the late 1950’s is described as the last great film noir. Henry Mancini includes the mixture of Mexican and American popular musical styles. Variety of other popular musical styles are heard throughout the score, which includes country and western music, rock music, and intense jazz. Variety of modern styles in the late 1950’s are also seen through films such as Big Country, Vertigo, and North by Northwest. For example, Jerome Moross’s score for Big Country displays an influential new western sound, where he made concrete western sound. New Wave were greatly influential on American films in the early 1960’s. Through music in the New Era, music in from the films in 1960’s tends to create general moods rather than to illustrate specific or varying emotions. While filmmakers were faced with economic challenges, increased reliance on a smaller collaborative performance rather than the standard orchestra provided financial savings. It was also clearly observed that both popular and modern musical styles were well suit ed. These musical styles are demonstrated through three films in the early 1960’s, which are The Hustler, The Pawnbroker, and The Manchurian Candidate. Through the film, The Hustler, musical cues are often scored for jazz ensembles. However, in The Pawnbroker, Quincy Jones gets incorporates a modern style as required. One of the most distinct instruments employed throughout this film was harpsichord, which is a keyboard instrument used to renovate earlier form of  music for a more authentic sound. Furthermore, David Amram, who composed a film score for The Manchurian Candidate, uses various modern styles (e.g., American nationalist style for scenes of the soldiers returning to the US, and avant-garde styles to represent disoriented nightmares that some of the soldiers had. As observed in To Kill a Mockingbird, Elmer Bernstein’s musical score indicates small number of instruments used throughout the film along with general modern style. By 1967, sexuality and graphic violence were prevalent. In the film Bonnie and Clyde composed by Charles Strouse, most feature instruments associated with country music. From 1968 through early 1970’s, American society drew much concerns and frustrations due to many shocking events (e.g., Martin Luther King assassination, Robert Kennedy’s death from shooting, public view on Vietnam War, and war protests). As a result, filmmakers continued to use traditional musical scoring to maintain strong sense of reality. In Planet of the Apes, Jerry Goldsmith’s score consists of avant-garde style. John Barry mixed variety of popular styles with a few passages of modern electronic music through the film Midnight Cowboy and Easy Rider. It also included rock style to relate the prominence of drugs in the plot. Finally, during the films of the early 1970’s where tensions were observed throughout America’s society, films often went with modern musical styles to underscore the hindrance of America due to widespread criminal activities and corrupted government officials.

Role of education in a developed country

Ads not by this site About the role of education in a developed country. Over the years, mankind has recognized the need of maintaining an educated civilization as being part of the patterns and orders of evolution. It is fairly safe to say that without education there cannot be any progress on a social, moral as well as economic scale. Knowledge and culture are the basic elements to a thriving and prosperous society. From a social point of view, education is a matter of acquiring the ability to adapt to demanding situations.Due to the continual change in modern means of living there has been an increased number of social issues needing to be dealt with. As a rule, the more articulate our need to prosper, the more detrimental we find ourselves to react to negative stimuli. Thus education supports us in developing the necessary mental capacity of overcoming such internal conflicts. For instance, a narrow-minded person has the tendency of reacting in a violent and self- deprecating way , while a broad-minded one will discover solutions to problems nstead of aggravating them.From a moral point of view though, education still stands as a major influence on both the form and content of our society. Clearly, we develop a mutual understanding of the unspoken rules which are at the very essence of a nation. To cast some light on the issue of moral values, teachers instigate in their students the importance of education in relation to personality development. In effect, Ireland is a great model of a healthy educational system, thus being one of the ost highly regarded nations on behalf of teaching methods.However, education does not only clear the path towards a brighter society, but it also enhances the opportunities and chances of citizens to find a stable working place. The unemployment rate is lower in developed countries than in illiterate ones such as the African villages. All of this being due to the higher level of knowledge. In other words, the more educated a n ation, the higher the chances of important discoveries taking place.Also, it has been proven that educated people have a lesser chance of contracting mental illnesses. To conclude, there is enough evidence to support the view that a country is more prosperous and thriving than other ones as long as the level of education among its population is above the average. As Horace Mann said â€Å"A human being is not attaining his full heights until he is educated. â€Å"

Harry´s Buniness Venture Based on the Hunting Act 2004 Essay

In order for Harry’s business venture to be legally permitted he would have ensure that each time this event was to take place strict rules will be followed by all participants in order to completely comply with the law laid down in the Hunting Act 2004. Firstly Harry should be aware that section 1 of the Hunting act â€Å"Hunting wild mammals with dogs† states that â€Å"A person commits an offence if he hunts a wild mammal with a dog, unless his hunting is exempt.† From this Harry would need to determine whether Mink are in fact a wild mammal, this can be done by referring to section 11 sub-section 1 where under paragraphs (c) â€Å"a wild mammal which has escaped or been released from captivity or confinement,† and (d) â€Å"any mammal which is living†¦show more content†¦In order for harry to know if his activity will allow him to be exempt, section two â€Å"Exempt Hunting† subsection one says â€Å"Hunting is exempt if it is within a class specified in Schedule 1.† The main areas for harry to pay attention to in Schedule 1 are section 1 â€Å"Stalking a wild mammal, or flushing it out of cover, is exempt hunting if the conditions in this paragraph are satisfied.† We can see fr om what we are told about the Mink eating young birds from a nearby wildfowl centre and trout from a farmer’s trout farm. That Harrys activity will fall under section 2 â€Å"The first condition is that the stalking or flushing out is undertaken for the purpose Of† paragraph (a) â€Å"preventing or reducing serious damage which the wild mammal would otherwise cause† sub-paragraphs (ii) to game birds or wild birds (within the meaning of section 27 of the Wildlife and Countryside Act 1981 (c. 69))† and sub-paragraph (vi) to fisheries. With regards to the rest of Schedule 1 there are conditions that Harry