Nobody downloaded yet

The Market Business Questions - Essay Example

Comments (0) Cite this document
Summary
Topic: SE Name Professor Institution Course Date Q1. The shortage in the supply of eggs has had a number of implications on the production of food products in Britain. Egg is an important ingredient in the production of biscuits and based on the concept of derived demand, the demand for biscuits is dependent on the demand for eggs (Cassel, 2002, p…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92.9% of users find it useful
The Market Business Questions
Read TextPreview

Extract of sample "The Market Business Questions"

Download file to see previous pages According to the article, the price of eggs has more than tripled and this may have a similar effect on the prices of biscuits. The market for biscuits will be affected in the sense that high prices caused by an increase in the cost of an input will increase the price of biscuits. The demand for biscuits will fall drastically given the fact consumers are price conscious. According to the rule of demand, customers are willing to buy more at fewer prices and buy less at higher prices. This is illustrated by the diagram below: P D P2 P1 D Q2 Q1 Q The sale of biscuits will no longer be lucrative because businesses will be recording low sales volumes. This will result in most of the business closing down such lines of businesses or resort to importing biscuits produced outside the British market. This can be explained by the fact that foreign biscuits are produced cheaply hence less expensive. Textbook economic theory would agree with the statement “it is no longer about price, it is about supply.” According to the law of supply, all other factors being equal, as the price of a good or service increases, the quantity of goods or services offered by suppliers increases and vice versa (Altman, 2004, p. 39). Suppliers will be more willing to supply eggs given that they fetch very high prices in the market. This is to maximize profits from the supply of eggs. This is explained in the diagram below: P P2 S P1 S Q1 Q2 Q Q2. A mixed economy is characterized by the presence of both public and private institutions. The two institutions are involved in addressing the needs of consumers and solving economic challenges that may exist in the market. Consumer needs and demands can be addressed adequately when the institutions utilize existing opportunities in making goods and services available in the market. According to principles of economics, scarcity refers to a situation whereby the available resources in an economy are not adequate to meet the needs of the economy. This results in consumers having some of their needs unsatisfied. Depending on the demands of consumers, the government has the responsibility of analyzing and determining their level of importance in improving the welfare of the consumers. The government also determines the appropriate procedures to be used in addressing such needs. Opportunity cost can be defined as the cost of a foregone alternative. For instance, the concept opportunity is best illustrated in a situation whereby someone decides to become an entrepreneur after completing college. In such a case, the person gives up the chance of getting fulltime employment and the opportunity cost of his decision to become an entrepreneur is the monthly income and allowances attached to the fulltime job. The two concepts of scarcity and opportunity cost are very important to the government given that the government collects revenues and uses them in running the economy. The government has the responsibility of making sure that the economy is running smoothly by spending its revenue on essential projects. Government spending should be influenced by a number of factors such as challenges, costs and benefits of such projects. The government needs to develop a list of all the projects it intends to put in place and determine their relevance to the economy (Cassel, 2002, p. 122). This means that the governme ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“The Market Business Questions Essay Example | Topics and Well Written Essays - 1500 words”, n.d.)
The Market Business Questions Essay Example | Topics and Well Written Essays - 1500 words. Retrieved from https://studentshare.org/business/1448085-se
(The Market Business Questions Essay Example | Topics and Well Written Essays - 1500 Words)
The Market Business Questions Essay Example | Topics and Well Written Essays - 1500 Words. https://studentshare.org/business/1448085-se.
“The Market Business Questions Essay Example | Topics and Well Written Essays - 1500 Words”, n.d. https://studentshare.org/business/1448085-se.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF The Market Business Questions

E Market Business Plan

...E Market Business Plan Executive summary In the world today, people are advancing in technology to such levels that they can be able to exchange goods and services without necessarily having physical contacts. The information technology has advanced so that information can be passed from one individual to another within a very short time and easily. This has helped people to develop ways to negotiate means to buy and purchase products from people who stay in distant places without necessarily visiting the people who possess such commodities. The payment systems are implemented in such ways that money is transferred from one individual to another through an internet enabled systems and connectivity that...
6 Pages(1500 words)Research Paper

Business Market Assignment

...? Business Market Assignment Overview The Toepener is one of the newly invented strong pieces of aluminum product that helps in reduction of the entry of the germs. It is an innovative design introduced by Max Arndt, a senior of University of Minnesota. Just after its invention, its sales increased from 50 units to 500 units as compared to other substitute products. Due to which, the market image and profitability of the product enhanced to a significant extent. Discussion Launching of a new product within a new market or by within a firm is fully associated with uncertainty and risks. This is because; varied types of discrepancies arise at the time of forecasted and...
4 Pages(1000 words)Essay

Business Law Questions

...?First information Business Law Question Eva, the owner of Finest Enterprises, is a sole proprietor. Assuch, she runs and maintains ownership of the business herself. In sole proprietorship, there is no legal distinction between Eva and Finest Enterprises that is, the owner and the business are considered as one under law (Aronoff, Ward and Astrachan 22). The first advantage is that this type of business is easy to form. The business organization is simple with minimal legal formalities that includes the license and permits in special cases. The business is also easy to dissolve if Eva so wishes. The second advantage is...
7 Pages(1750 words)Coursework

SMALL BUSINESS MARKET RESEARCH

...? SMALL BUSINESS MARKET RESEARCH Table of Contents SMALL BUSINESS MARKET RESEARCH Table of Contents 2.0 Introduction 3 3.0 Considerable Market Factors 3 3.1 Suitability and Risks 3 3.2 Target Market Segment 4 3.3 Attractiveness of USP to this Market Segment 5 3.4 Competitors Why Customers Buy from Them 6 3.5 Proposed Selling Price 7 3.6 Nature of Market 8 3.7 How the Product Will Reach the Customer 9 4.0 Summary and Recommendations 10 5.0 References 11 6.0 Appendix 13 By Name Course Tutor Institution City/State Date 2.0 Introduction Entrepreneurship involves taking up risks in the market...
9 Pages(2250 words)Essay

International Business - International Market

...Introduction Trade has become increasingly global in some scope today and there are reasons for this. One is the advancement in technology including communication efficiency and modernization where people are migrating to live in areas where they feel they are comfortable. Increasingly, rapid technology lifecycles has increased competition among countries as to who can produce the best in the market hence the need to employ competitive marketing and business strategies (Dole, 2003) This paper will deal with Dell Inc. as a computer hardware and software company. It will investigate the current business strategies used by the company to conquer international...
10 Pages(2500 words)Case Study

Business Market analysis

...MARKET ANALYSIS OF FOOT BALL ON THE INTERNET Introduction Football (soccer) is one of the most famous game in the world and perhaps the game with most fans. Foot ball has developed over the years from its origin countries in Europe and has achieved world status. It is played in all corners of the world and hosts some of the biggest tournaments in the world. Soccer industry in one of the most organized industry in the world. it is worth billions of dollars and is highly structured with professional management. The billion dollar industry has grown over the years using different marketing strategies. It remains to be one of the highly commercialized business sectors in the world raking in...
5 Pages(1250 words)Essay

Business & its Environment (2 questions) 1. Describe Ikea's strategy 2.Evaluate Ikea's market entry stategy in North America

...environment friendly products and supplies, have a green transport plan and use waste-to-energy technology. IKEA's 'IWAY' for minimum requirements for social, working, and environmental conditions point to the fact that green business is indeed smart business. (Webb, 2007) (Brosi, Gabel, Buitt, & Stults, 2006) IKEA has done well to build strategic alliances and franchises for expansion purposes. Their marketing strategies illustrate how they have built a global brand by localization in each specific market and buy offering a unique shopping experience to its customers. Diversification from a well-established and maturing market of home furnishing into...
2 Pages(500 words)Essay

Business questions

...Answer The fast changing pace of the technology can be observed in the study of the organizations and the changing role of leadership within the organizations. The role of leaders, managers and the administrators of the organizations become more challenging when new technologies are introduced in the organizations. The good leadership ensures effective communication with the employees with shared vision of the new technology, thus promoting better understanding among the employees for easy changeover. The managers and the administrators need to be guided by the group leaders within the organization to implement the changes in a smooth manner. Answer 2 Leadership basically refers to people who have the capacity to bring about... The fast...
2 Pages(500 words)Essay

Business questions

...Business questions Question1a It is important for managers to understand the external forces in the market as they depend on the environment for inputs and in the long run, outputs (Jones & George, 208). Jones & George indicate that an understanding of the external forces may result to managers coming up with successful innovations; thus, given a better opportunity to be flexible in the market (211). High performance is highly dependent on an evaluation of the external forces. Question1b Political, legal and economic forces shape a nation’s culture since these forces are the major determinants of what is legal in a country and what is not. As Jones & George say,...
1 Pages(250 words)Essay

Market Orientation in Business

... Market Orientation in Business The time we live in can be characterized by not only a high level of globalization, dramatic environmental situation, and global economic crises, but also an extremely competitive market. As a result of a high level of competition, both big companies and small enterprises need to develop and then implement the most effective marketing strategies in order to stay on the market and remain profitable. There are various marketing orientations a company may choose from. Some of them prove to be effective for almost any type of business while other appear to be useful only under certain circumstances. Within a framework of this paper, one of the most effective marketing orientations will be considered... , and...
9 Pages(2250 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic The Market Business Questions for FREE!

Contact Us