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From time back, suburban and new cars have made the economy powerful and pushed recoveries. In contrary, Millennial have no interest in the two. The same way sale of cars have dropped in this age cohort, young people’s share on mortgages from the year 2009 to 2011 has dropped to half of what was 10 years back. Majority of the generation of America might never consume compared to the lavish spending of their parents. At the time Zip car was formed, a gallon average price was 1.5 dollars and I phones never existed. From then, it has been the largest car sharing firm in the world. Zip car bases its success on two factors. The first being the doubling of gas prices that made the sharing attractive. Secondly, smart phones became present everywhere that made the sharing of cars easy. Besides, the mobile market has given power compared to car sharing. It has enabled friends to communicate from a distance. This could result to shifting from automobiles to mobiles and s decline in spending habits. Millennials are sharing most things such as living quarters. Most of the millennials lived with their parents due to the great recession (Cam Marston, pp 85) The society where people owned houses has been replaced by squatters and renters. As much as most millennials may want to have their own houses they have been faced with challenges like low savings due to low pays and tough conditions of banks. The debt of students trail most buyers as they look for car loans or mortgages. At minimum individual ownership of houses rates are not likely to return to peaks that they hit at the time of housing bubbles. In 10 years, most people consisting mainly of millennials will pull together to make new households. As a whole living aside urban sensibility, small houses and townhouses are cheap, and developers have in mind that in order to attract this group, they need to provide for bank accounts that are in tatters. The kinds of property the millennials buy now differ from what was purchased five years back. The houses are placed within the perimeter of shopping centers. Such buyers require shares of zip cars and bikes. In short in future, the buyers may require cars and houses that are small and cheaper that is specifically meant for the new economy. If millennials do not post own and post drive generation, they will be less owning and less driving generation. The situation would lead to tough adjustments of the economy in the near future. In the past decades, the industry of houses has always solved the problems of recession. At the time the federal dropped the interest rates at the time of recession in the 1980s, it aided fuel the recovery of Regan (Eugene et al. pp 2) As the housing market declined, the government has lost the main means of manipulating the economy by reduced interest rates. Instead, the service recovery that is there is not strong. The small houses that are constructed in mixed used, dense areas in general take long to construct than mansions in other places. And because the small houses require few furnishings and fixtures, their building stimulates less activity in the economy. To add to that, both auto making and construction are basically blue collar jobs. These sectors employ many middle class employees that would be hurt through changing from auto manufacturing and home construction. Companies that deal in internet connection of high speed and personal electronics do not require many employees. Moreover, the jobs that they create skew steadily towards the peak of socioeconomic ladder. On the other hand, in the long term or long run, there is cause for sanguinity. There
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Demand refers to the quantity of a commodity that an individual desires to have and the supply is the ability of the producer to be able to provide that particular quantity and commodity to the individual who requires it.The economic problem of scarcity refers to the problem of choice that most people have because their purchasing power is limited, or the ability to purchase products is limited despite them having a high demand for the commodities they wish to purchase, however at the same time, they have scarce options to choose from in order to make the best choices with their given purchasing power or wealth bundles.
The paper discusses the key issues discussed in the article and also explains how it relates to the syllabus that is given. The chosen article is about demand supply and market equilibrium. It also discusses the elasticity of demand of a product. To start with, the article describes utility as the amount of satisfaction that a consumer derives from consumption of a good.
This is because according to Mentzer and Moon (2004), forecasting is an important mechanism for matching demand and supply and could therefore be used to undertake sales and operations planning for businesses. Meanwhile, demand and supply matching has been said to be an important element in planning and decision making for businesses (Mentzer and Moon, 2004).
It is hosted quad-annually, meaning once every four years. Once the World Cup bid is up for nomination, several countries put in bid due to a number of reasons. Generally, countries put in their bids looking at the merits that they will derive from socio-economic perspectives.
In the recent studies, the economists suggest that price level for a product introduced by the members of a company largely depends on the elasticity of market demand for the product. Price Elasticity is basically the degree of responsiveness of the change in quantity demanded for a product with respect to the change in the price level of the product.
Actually, the theory of consumer behaviour explains that quantity demanded of a particular good doesn't only depend on its price but the price of other goods and services also creates an impact on it. But, in case of cross elasticity of demand, you have to keep one important thing in mind, i.e.
The following is a discussion why the demand for lipstick and cosmetics rises in a recession.
In a recession there is a decline in the level of investment, this means that the level of employment declines resulting into a decline in income, given that this income is to be used to purchase goods and services a decline in this income means that the expenditure level will decline.
This will be illustrated by the price elasticity of the cigarettes, which shows the proportional change in the quantity demanded due a percentage change in its price. Another factor that assists in the demand analysis is
When the price of a good becomes less the consumers may buy more or the demand for that good may increase and when the price increases, the demand may decrease. In other words, law of demand educate us that price and demand are inversely proportional. This