A class that has seemed to go by extremely quickly has become very relevant in my life. I have used economics in interactions with people, businesses, and economic institutions. The first example I have involves the decision to live in Knoxville this summer. I am originally from South Carolina, but I made the decision to find a job, get an apartment, and ultimately live somewhere I never imagined I would live for the summer. Babysitting has been my main income all of my life, but this summer I needed to make more money in order to pay for rent, food, gas, and to have spending money. I currently babysit for a family in Knoxville, but I recently picked up another position as a Duck Donuts employee. Economic institutions have become very important …show more content…
Economics has allowed me to understand the Determinants of Demand in a personal perspective. Duck Donuts is rather small in the donut world compared with Krispy Kreme and Dunkin Donuts, but they are different from these massive corporations because Duck Donuts is customized for each individual person rather than selling general types. This is what makes them special and make them have different products than the competition. Duck has to focus on demand and supply. If they charge too much people will not buy them, so they have to set a price in relation to the big businesses which is why price of related goods comes into play. The determinants of demand are crucial because taste and preferences do change so it is important to pay close attention to new flavors and ideas in a company like Duck in order to maintain business. Expected future prices and income effect a dwindling economy because donuts are not a necessity, so prices have to match what people are still willing to spend on what would be considered a choice or different opportunity. Finally, different regions prefer different toppings or types of donuts so population composition comes into play when deciding where to build and what to serve which also relates back to taste and
In economics, particularly microeconomics, demand and supply are defined as, “an economic model of price determination in a market” (Ronald 2010). The price of petrol in Australia is rising, but the demand remains the same, due to the fact that fuel is a necessity. As price rises to higher levels, demand would continue to increase, even if the supply may fall. Singapore is identified as a primary supplier ...
The authors statements in his essay are ones every student coming into college age should hear. Though it is widely known that our economy has been through hard times, it is great to hear the prospective of a college student learning valuable life lessons. The motivation to use this first hand knowledge and see its potential to motivate himself through his studies is a lesson for all students.
Studies show that birds currently generate nearly $20 billion and create more than 234,000 jobs in the United States. Fish and Wildlife Service also reports that birds can generate more than $1 billion in state and federal tax revenues to the United States. If there are less birds this can mean lower retail sales, less tax revenue, fewer jobs, and lost economic opportunities. We need to save the birds in the United States. Duck Unlimited (DU) is an organization that helps fight for the safety of ducks and their livelihood.
We the consumer would rather pay less for any product that is needed or want. Ultimately we are the reason for high prices as well as low prices. Prices of products do not always stay the same and more popular products have higher prices than less popular products. These fluctuations, high prices and low prices are from the idea of supply and demand. Supply and demand defines the effect that the availability of a particular product and the desire or demand for that product has on price. Generally, if there is a low supply and a high demand, the price will be high (Investopedia). To understand the idea of supply and demand, the understanding of supply and the understanding of demand must be defined. The Law of Supply states that at higher prices, producers are willing to offer more products for sale than at lower prices, also that the supply increases as prices increase and decreases as prices decrease (Curriculum Link). The Law of Demand states people will buy more of a product at a lower price than at a higher price, if nothing changes, at a lower price, more people can afford to buy more goods and more of an item more frequently, than they can at a higher price and that at lower prices, people tend to buy some goods as a substitute for others more expensive (Curriculum Link). In todays economics these ideas are seen frequently in everyday life. The laws of supply and demand are seen in many ways in the company Apple Inc. Each year Apple Inc unveils a long awaited mobile operating system and IPhone. We can also see many aspects of the law of supply and demand in Nike Inc’s Jordan Brand. Jordan Brand has released a number of...
Despite it’s location Dot’s Donut Shop was about to get famous.Dot’s Donut Shop was located in a bad neighborhood full of crime.Police’s were absolutely horrified to come.Many people didn’t come out unless it was an emergency.So the donut shop suffered from lack of business getting done. The owner Mrs.Aurora is a tall ,light -skin,with hazel eyes. She’s owned the donut shop for at least twenty every since she came from Mexico 20 years ago.Business has never been this bad before now.Aurora doesn’t know what to do about this situation.She decided to keep trying and not worry about them people who were trying to kick her to the curb.So the next day she was officially about to be kicked to the curb but she she put in effort and perseverance,
Krispy Kreme Case Study Question 1. The chief element of Krispy Kreme's strategy is to deliver a better doughnut and to appeal to customers in new ways. They have taken great steps to insure customer satisfaction from the use of their proprietary flour recipe to their automated doughnut making machines. They have chosen to target mainly markets with 100,000 households. They also were exploring smaller-sized stores for secondary markets.
The first principle is the changes in demand due to the surging food prices. The law of demand states that the quantity demanded rises as price falls, and the quantity demanded falls as price rises; overall, this tells us the law of demand is an inverse relationship between price and quantity demanded (McConnell 66). However, the increased prices would not drastically make consumers to stop buying food because food is a necessity. They will just cut back a little on some goods or buy cheaper substitute goods, “a good that can be used in place of another good” (McConnell 68). This makes the demand drop for higher price substitutes and demand rise for lower price substitutes, which confirms the law of demand. For example, “Terri Weninger, a married mother of three in Waukesha, Wis., said...
Parker, J. (2012, April-June). Does Living Near Classmates Help Introductory Economics Students Get Better Grades? The Journal of Economic Education, 43(2), 149-164.
Three concepts that can be applied to this question are elasticity of demand, cost-benefit analysis, and Keynesian economics. Elasticity of demand has to do with price change, and the sensitivity level that is associated with certain price changes. Generally, when the price of a product goes up, people do not demand as much as this product as they did before. The magnitude of how much the demand rises or drops due to price change is the elasticity. As for cost and benefits, it is understood that in economics, a company is to begin and proceed with their production as long as the costs do not outweigh the benefits. An analysis of the cost effectiveness of different alternatives in order to see whether the benefits outweigh the costs is an integral part of every company, and this concept can also be app...
The market price of a good is determined by both the supply and demand for it. In the world today supply and demand is perhaps one of the most fundamental principles that exists for economics and the backbone of a market economy. Supply is represented by how much the market can offer. The quantity supplied refers to the amount of a certain good that producers are willing to supply for a certain demand price. What determines this interconnection is how much of a good or service is supplied to the market or otherwise known as the supply relationship or supply schedule which is graphically represented by the supply curve. In demand the schedule is depicted graphically as the demand curve which represents the amount of goods that buyers are willing and able to purchase at various prices, assuming all other non-price factors remain the same. The demand curve is almost always represented as downwards-sloping, meaning that as price decreases, consumers will buy more of the good. Just as the supply curves reflect marginal cost curves, demand curves can be described as marginal utility curves. The main determinants of individual demand are the price of the good, level of income, personal tastes, the population, government policies, the price of substitute goods, and the price of complementary goods.
However, law is not my sole academic interest. I am also drawn to subjects involving the big bucks- that is, economics. I became familiar with money at an early age by selling Girl Scout cookies to the locals. I took it a step further as a teenager with a job at Wendy’s, where I have learned firsthand about productio...
The economic situation is an environment to be considered when analyzing consumer behavior for this product. Disposable income is very important to ice cream consumption. Since ice cream is typically considered a luxury good, one’s disposable income will affect their demand. Generally, when the price of a normal good increases one will consume less of that good, if the price decrease one will consume more. However, these prices are relative to the consumer’s disposable income. For example, if an individual receives a raise and their disposable income changes from $50 a week to $100 a week, their opportunity cost of buying ice cream may decrease, causing an increase in their demand for ice cream. This can happen even though the actual price remains the
There is increased competition- This is a consequence of capitalism. Increased competition leads to improvement in terms of quality and efficiency of production. It also leads to low prices of products in the market, as producers want to have a larger share of the consumer market. In a capitalistic perspective, businesses that produce high quality products at a low price enjoy a larger market share.
In conclusion, while the shift in demand curb can result from several sources, the quality of service, the tastes or even the number of buyer as presented here represent the main reason of the shifting price of an activity as the sell of ice-cream on campuses. As a businessman we should take in consideration those factors in order to be successful and trying to anticipate our rise or fall to stabilized our business. On another hand, keep in mind The most famous law in economics: “when the price of a good rises, the amount demanded falls, and when the price falls, the amount demanded rises.”
That is, it is sensitive to price change, and also to the quantity demanded. This means that if many people are consuming a good, the demand is greater than if less people are consuming the good. To further clarify, take the example of attending college. In an environment where most of an individual's peers are going to attend college, the individual will see college as the right thing to do, and also attend college to be like his peers. However, in an environment where most of an individual's peers are not going to attend college, the individual will have a decreased demand for college, and is unlikely to attend.