Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

Market Economy - Essay Example

Comments (0) Cite this document
Market economy insinuates the relationship between the quantity of goods in demand, and their pricing according to Altvater (1993). With such factors in consideration, the market will have to shape its demand for the products in the market depending on the prevailing prices. …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.6% of users find it useful
Market Economy
Read TextPreview

Extract of sample "Market Economy"

Download file to see previous pages Therefore, the market will only depend on the pricing, which affects their frequency for demand of some products. For instance, when some prices of some goods are reduced, the customers could insist on increasing the quantity in demand. This technique could be used by markets to shape their demand for products in the market, depending on the market perception of the products and pricing (Gregory & Robert 2004).  In part A, there is need to have a focus on the provided data, which would be used in plotting the demand curve. Given the equation P = 10 – 0.5 Q, there should be a stated acceptable pricing and quantity that will be used by the consumers. The pricing will have a direct effect on the quantity in demand, as they are closely related. Using the current price of ? 6.50, the equation will be denoted as follows; P = 10 – 0.5 Q This will be followed by a substitution of the price, which is P ? 6.50 = 10 – 0.5 Q 6.50 – 10 = - 0.5 Q -3. 50 = - 0.5 Q 3. 50 = 0.5 Q 2 *3. 50 = 0.5 Q *2 7=1Q Q = 7 When the pricing of the moonshine club is at ? 6.50, the attendance according to the above mentioned equation will be seven. This means that, the attendance will be at 7, when the pricing is at ? 6.50. Using the above equation, there is a possible curve that could be derived, given the pricing range from ? 0 to ? 10. The pricing and attendance will have change, depending on the curve and preference of the demand. For instance, many people will increase their attendance when the pricing is low. pricing quantity 0 20 1 18 2 16 3 14 4 12 5 10 6 8 7 6 8 4 9 2 10 0 In plotting a demand schedule, there are various considerations that should be factored. The First factor is the pricing of the moonshine club. The second consideration is the demand for the services of the moonshine club. When the price of the club is at 10, there would be a possible zero attendance. However, when the price of the club is at 0, the attendance is likely to be at 20. The elasticity of the moonshine club is evident in their pricing. The highest pricing is denoted at 10, which brings a zero attendance. However, when the club decides to reduce its pricing to zero, the attendance will be full at 20. To make a better reflection on the elast5city of the club in pricing, there is need to focus on the equilibrium point. The equilibrium point is where the lines intercept. This is when the price is at ? 6, and the attendance will be denoted at 8. In part B, there are several considerations that could be used to make the favourable changes in the pricing and demand for the services of moonshine club. In the first instance, when a substitute club initiates a reduction of the pricing from ? 5 to ? 4.50, there are possible changes that could be discovered. Since moonshine is charging ? 6.50. With two visits to moonshine club, the customer will be spending ? 13.00. However, going to the substitute charging ? 4.50 will be favorable as the customer would make three visits which will be charged a ? 13.50. ? 5.00 ? 4.50 2 3 In this graph, it is evident that a person would prefer three visits to a substitute club, than spend the equivalent on two visits top moonshine club. In the second scenario, there is a change in the annual income which is a 10 percent increase. With such an increase, there is a possible increase in the ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Market Economy Essay Example | Topics and Well Written Essays - 1250 words”, n.d.)
Market Economy Essay Example | Topics and Well Written Essays - 1250 words. Retrieved from
(Market Economy Essay Example | Topics and Well Written Essays - 1250 Words)
Market Economy Essay Example | Topics and Well Written Essays - 1250 Words.
“Market Economy Essay Example | Topics and Well Written Essays - 1250 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document


Clothing Retail Market in General

The industry is оverwhelmed with cоmpetitiоn frоm cоmpаnies which hаve invested in hi-tech mаchinery leаding tо greаter efficiency оr hаve plаced their prоductiоn tо fаctоries in cheаp lаbоur cоst cоuntries tо prоduce their prоducts. Hоwever, mоst pаrt оf the cоmpаnies in this sectоr mаke nоt very high prоfits. Tо increаse the mаrket shаre in this аrenа is nоt аn eаsy tаsk, аnd therefоre it needs а greаt deаl оf endeаvоur, knоwledge, аs well аs energy аnd mоney.
Clоthes retаilers fаll intо twо brоаd cаtegоries: firstly, thоse selling оwn-brаnd clоthing аnd, secоndly, thоse selling third-pаrty weаr. Mаjоr retаilers such аs Mаrks & Spencer аnd the Аrcаdiа Grоup аre gооd exаmples оf the first grоup, аs аre chаin оperаtiоns s...
18 Pages(4500 words)Research Proposal

Market Analysis and Segmentation: JetBlue Airways

It is for this reason that JetBlue management painstakingly handles the services and amenities that the company offers. They present very competitive technology as far as providing comfort to their passengers is concerned. Destination-wise, JetBlue Airways may be considered a specialty carrier that is relegated to a short-haul concentration, taking advantage of similar economies available with advanced technology and updated equipment. A short-haul carrier, JetBlue operates efficiently by consolidating services and economies of scale. Consequently, as a short-haul carrier, JetBlue’s revenues are considerably high compared to other airline companies.

In 2003, JetBlue declared a profit of $ 17.6 M for its first quar...
6 Pages(1500 words)Case Study

Starbucks in Chinese Market

In the year 1996, the coffee giant marked its global presence. Up until 2004, the Chinese government prohibited Starbucks to operate its own stores in China. As a result, the coffee giant enters the Chinese market by joint-venturing with Chinese food and beverage companies and licensing other companies to own and operate its stores--differs from its domestic approach. But the company was able to easily overcome its initial obstacles and marked its presence in China very quickly and successfully with great brand recognition and customer satisfaction. The company also tailors its stores to match the local atmosphere. This is a transnational strategy. “For example, the Starbucks strategy in Shanghai is to attract middle to high...
7 Pages(1750 words)Case Study

The Challenges of Foreign Market

Any multinational company is exposed to risks such as change of foreign currency exchange rate, commodity prices, and interest rates because it denominates its transactions in foreign currencies. That’s why there is also some uncertainty in future earnings, liabilities and assets values.
Therefore, before taking a decision on the country of entry, a profound analysis of its current political and economical situation is to be performed. According to Kotler and Armstrong (351-361), a decision on whether to enter a foreign market should be based on a profound analysis of potential risks and opportunities, as well as the company’s internal resources.
The company is a Limited Liability that exports roasted and gro...
11 Pages(2750 words)Case Study

Oil Prices by OPEC and Market Fundamentals

Market failure is defined as the inefficient allocation of resources by the market, the free market is considered to optimally prices and resources in the production of goods and services, and this is because the price and quantity produced are determined by market forces which include the demand and the supply. The control of prices by a firm or an organization in the market results in market failure, therefore OPEC leads to market failure due to its nature in the market.

OPEC was formed in 1960 by 5 oil-producing countries which include Venezuela, Saudi Arabia, Kuwait, Iran and Iraq, The aim of this organization was to unify petroleum-producing countries in order to realize fair and stable prices of oil .other oil-pro...
6 Pages(1500 words)Report

Segmentation, Target Market, and Positioning of the Fortified Wine

There are some types of fortified wines which carry a rich legacy and ethos of the Australian culture and society. This rich history and distinct flavour can be utilised to penetrate growing markets like China and build a strong brand presence there when the market is relatively immature. Moreover, tweaking of marketing, distribution and pricing strategies would offer greater sales potential for the fortified wine industry itself in Australia.

Among the variety of wines that are available, the Australian wine industry offers an attractive bevvy of the following variants of red wine, white wine, vintage wine, sparkling wine, dessert wine and fortified wines.

The fortified wines are also termed as “liquid...
10 Pages(2500 words)Business Plan

The Effects of Financial Crisis on Supplier Selection Criteria of the Oil and Gas Industry Equipment Market

It is a difficult task to find those vendors who not only have the adequate quality and quantity of the needed raw materials but who also have an attitude of efficiency and display commitment to customer service (Sonmat, 2006). Further, organizations also strive to locate and select vendors who can be depended upon for long term relationship.

The number of factors or attributes desired from the vendor is vast, and different organizations and different industries place different importance on the attributes (Sonmat, 2006). Some of the vendor attributes may gain importance owing to the nature of the industry, for example, in the case of consumer perishables suppliers, like fresh vegetables or fruits, the buying firm would...
20 Pages(5000 words)Literature review

Effect of Corporations Moving Jobs Overseas on the Economy

The issue comes into focus, whenever there are political, economic debates or talks about H1B visa limits. The economic slowdown has further led to the intensification of these debates. But, despite apprehensions from different quarters, neither the companies nor the government has said a final word on the trend. Increasing levels of competition amongst the corporate houses have been one of the key highlights of the globalization era. Be it the retail sector, the banking, the automobile, the IT-enabled services, the white goods space, etc. the companies have always been on the lookout for reaching out to more number of customers while doing everything possible to please the existing lot. Leveraging the economies of scale has prove...
8 Pages(2000 words)Coursework

Foreign Market Entry and Diversification

...Foreign Market Entry and Diversification Table of Contents Identification and discussion of the trendsin the global beer markets 3 International expansion trends and Modelo’s internal expansion 5 The next foreign market Modelo should enter 6 Challenges from InBev 7 Modelo should diversify 8 References 10 Identification and discussion of the trends in the global beer markets Beer industry is one of the largest industries in the world. Over the last few years the entire alcohol industry enjoyed a satisfactory performance. In 14th century modern beer industry started in Europe. Since the tastes of consumers vary from region to region, the industry was clustered in nature and it was dominated by several local breweries. Earlier transportation...
7 Pages(1750 words)Assignment

Entry into Foreign Market

However, political instability and turmoil are yet a few of the hindrances which could affect the stock markets and in a worst-case scenario may as well, completely shut down businesses (Root 1982). The new business practices, on the other hand, involve a transparent setup and a free market, free of turmoil to operate and maximize production (Bennett 1998). Also, in such a case, the consumer must also be able to spend on the product, to make it a success. However, Burma currently has strong institutions having a hold on the resources which need to be exploited, i.e. a few of the military generals and autocrats have access to the resources, and thus, dealing with these groups might prove to be a waste of the corporation`s own effor...
6 Pages(1500 words)Assignment
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 Market Economy for FREE!

Contact Us