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

Demand and Supply Curve for Tuna Fish - Essay Example

Comments (0) Cite this document
Summary
From the question, increased demand for Tuna Fish fueled by Americans, Europeans and Chinese who are switching to more healthy sources of protein causes a rightward shift in the demand curve…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER93.6% of users find it useful
Demand and Supply Curve for Tuna Fish
Read Text Preview

Extract of sample "Demand and Supply Curve for Tuna Fish"

Download file to see previous pages This is primarily because a movement along the supply curve occurs when the price of the good changes and quantity supplied changes in line with the original supply relationship. If any of the factors affecting supply of vessels or labor market changed then the supply curve would shift either side (Arnold, 2013).
If people discover that tuna has heavy concentrations of mercury the fish labor market would suffer. Though price has been increasing due to healthy consciousness about tuna fish as a rich source of protein, this discovery would drastically lower the quantity demanded causing leftward shift in demand curve from D1 to D2. Thereby, the quantity demanded for the fish would lower because of deadly effects of mercury in food which also see price lower from p1 to p2. The supply curve would remain the same and quantity of labor and vessels supplied would move along the curve. If there is no remedy, the entire tuna market would collapse unless fishermen go fishing is safe waters where there are no contaminated fish. Q 4.1: Price Ceiling in Argentina’s Electricity Market With increase in demand for electricity in urban and rural areas with a price ceiling, it would put an upward pressure on price of electricity to increase and utility companies would require funds to expand their capacity to meet increasing demand (Q1) at lower and cheap prices (Po). Since there is an incentive to buy air conditioners to cool the houses, power blackouts would continue to increase more in urban areas than in rural areas. The difference arises because more urban centres are connected to power and residents have more disposable incomes to purchase air conditioners. In its worse form as inflation bites, utility companies would have to produce lower units of power at prevailing prices further increasing power blackouts. The supply curve would shift to the left resulting into lower units of power output (Q2) but because of the price ceiling the price remains the same instead of increasing as would have been the case under free market. Q 4.5: Price of entrees/ dinner during recession and during economic boom If the restaurant management is seeking less-price conscious clientele, it would therefore mean that during an economic boom, the target clients would have more disposable income and therefore willing to spend extra cash on the same quantity to enjoy a leisurely dinner at the restaurant. Likelihood of the management to increase prices under economic boom would depend on price elasticity of demand among the target customers. If the elasticity of demand is more that unity, then it would mean that a unit change in price would result into more than one unit change in quantity demanded. On the other hand, if elasticity is less that unitary, then a unit change in price would result into less than a unit change in quantity demanded (Landsburg, 2011). Therefore, in this case because the assumption is that target clientele is less price sensitive, then it means that price elasticity of demand is less than unitary. As a result, if the management decides to increase prices during an economic boom, then a unit change (increase) in price would result in less than a unit change (reduction) in quantity demanded (or number of clients). The resultant effect is that total revenue would increase more than before the original status because change from P0 – P1> Q0 – Q1. This therefore would let the management to allow customers to eat a leisurely dinner because they will have covered their costs and accrue more revenue. In addition, the ambience that comes with the restaurant having fewer customers would attract more customers who are less price ...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Demand and Supply Curve for Tuna Fish Essay Example | Topics and Well Written Essays - 1250 words”, n.d.)
Retrieved from https://studentshare.org/macro-microeconomics/1491259-5-various-mirco-economic-topics
(Demand and Supply Curve for Tuna Fish Essay Example | Topics and Well Written Essays - 1250 Words)
https://studentshare.org/macro-microeconomics/1491259-5-various-mirco-economic-topics.
“Demand and Supply Curve for Tuna Fish Essay Example | Topics and Well Written Essays - 1250 Words”, n.d. https://studentshare.org/macro-microeconomics/1491259-5-various-mirco-economic-topics.
  • Cited: 1 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Demand and Supply Curve for Tuna Fish

MicroEconomics Supply and Demand

The world’s leading brands are accessing the Japanese departmental stores to sell their limited edition products. The sales of chocolates in the Valentine season pick up like anything. Primary Economic Elements The soaring demand for chocolates in Japan near the Valentine season presents a positive opportunity for the local and international Chocolatiers. It is not that the Japanese are particularly fond of chocolates. In general, the Japanese are not avid chocolate fans and their panache for the local delicacy “Wagashi” does tend to have precedence over chocolates. However, the Valentine’s-Day celebrations are a different thing. The contemporary Japanese youth closely associates the Valentine season with love and romance and the...
3 Pages (750 words) Essay

Demand and Supply Analysis

...? Demand and Supply Analysis Substitutes and complements Good Substitutes complements An airline ticket More cheaper airlines Onboard refreshments A mystery novel Required textbooks Marker pens A floppy disk Flash disk Floppy drives 2. a) Fig. 1: Demand and Supply curves 3. 4. 5. 6. 7. 8. 9. 10. 11. a) Demand and supply are equal at the points when equilibrium quantity is Q=200 units. It is also at this point when equilibrium price is also equal to P=200. This is as shown in the graph above. b) The relationship between the quantity demanded and the price is of negative relationship while that between quantity supplied and price shows a positive relationship. Quantity demanded of a commodity according to the theoretical information...
5 Pages (1250 words) Essay

Demand and supply theory

Thus, for the exchange of interests (expressed in terms of goods and services) to occur, demand and supply has to exist, but at some costs. From the field of academia to industrial circles, the basic premises of supply and demand are integrated into the daily actions of the society. To be sure, the theoretical mastery of economics depends much on the understanding of the theory at hand (Gandolfi, Gandolfi, and Barash 5-6). The theory of demand and supply is, therefore, an organization principle that coordinates the production of goods and services (in quantities, often referred to as output) to satisfy societal needs through the market (price) mechanism. Intuitively, the price mechanism functions in a perfectly competitive enviro...
4 Pages (1000 words) Term Paper

Supply and Demand

... Supply and Demand Supply and demand refer to an economic theory of determining prices in a market. The theory asserts that in a competitive market, the unit cost for a specified product will differ until it remains at a position where the amount needed by customers will be equal to the amount supplied by producers, leading to an economic equilibrium for quantity and price. There are four primary laws of supply and demand. First, if demand rises and supply remains unaffected, there will be a shortage causing a higher equilibrium cost. Second, if demand lessens and supply remains unaffected, there will be a surplus causing a lower equilibrium cost. Third, if demand remains unaffected and supply rises, there will be surplus causing...
3 Pages (750 words) Term Paper

Supply & Demand

...?Supply and Demand: An Analysis Although one might be quick to assume that the food and beverage industry, specifically the fast food industry, is one that has a relatively inelastic level of supply and demand, this is only partially true. As will be detailed within this short analysis, there are a number of factors that work on a systemic and local level to differentiate the levels of supply and demand so that even though they may not make wild swings in movement, they are nonetheless nearly continuously in flux. Accordingly, the following analysis will present an argument for the way in which supply and demand is fundamentally shifted within the student beverage industry at the moment in time in which the risk of salmonella outbreak...
3 Pages (750 words) Article

Supply, Demand, & Equilibrium

.... It should be noted that these occupations have generally unlimited supply meaning a lot of people can be employed in these jobs. In the United States alone, factory workers and engineers abound looking for a job. Thus, we can see an upward sloping curve where more workers will be willing to work for a higher income. The demand on the other hand is more or less horizontal as the job market generally has limited slots for teachers, factory workers, engineers, and farmers. The, intersection of demand and supply determines the average wage. It should be noted that this is often fixed and is determined by the demand curve. The workers under consideration often accept what is offered by the companies which hire them. The market of professional...
2 Pages (500 words) Essay

AGGREGATE DEMAND CURVE AND AGGREGATE SUPPLY CURVE AND HOW EACH FACTOR

... Topic: Lecturer: Presentation: OUTLINE CONTENT PAGE Overview 1 Introduction 2 Purpose of the paper Aggregate demand curve 3 Definition Reasons for downward slope Changes in aggregate demand Aggregate supply curve 4 Definition Reasons for upward slope Changes in aggregate supply Shifts in long-run and short-run curves Combined AD and AS curves...
7 Pages (1750 words) Term Paper

Demand & Supply

... the demand for the product. First of all, the changes in the price of the products may affect the demand for the product as demonstrated in the figure above. This would be a movement along the demand Secondly, if the income of the individuals increase there would be a shift of the demand curve outwards in the price quantity space. This means that the as the income of the individuals increase the quantity demanded would go up and hence the price would go up at the same level of supply (Baumol and Blinder, 2009). Thirdly, the increase in the price of the complements would reduce the demand for the product and the increase in the price of the substitute would result in the increase in the demand for the good. Law of supply The law of supply...
5 Pages (1250 words) Essay

Strategic Opportunities for E-commerce Enabled Supply Chains

Scaling the e-business in IT infrastructure is important because it reduces the cost and expenses to interact with the customers and suppliers. It also helps in maintaining and in management of the e-business. 

“As your environment begins to evolve, it is important to recognize the value of horizontally scaling your platforms and applications to support increased loads and service requirements. As the concurrency and complexity of your systems grow, the greater the need becomes to support policy-based routing, application and data caches, as well as load balancing hardware and software.” (Whitepaper; August 2001)

From very starting there was a need for those applications that can be used to c...
9 Pages (2250 words) Report

How Can CRM Strategies Improve Efficiency and Effectiveness in Supply Chain Networks to Enhance Competitive Advantage

... CRM and Supply Chains How can CRM strategies improve efficiency and effectiveness in supply chain networks to enhance competitive advantage? Provide real life example to support your case With globalisation and the growth of a shared market across the world, it is very important for all brands to have individual recognition and be accepted as a part of the local scene as much a small business would be (Harker and Esan, 2006). While this is often the target of marketing executives, it is often found that customers may have different relationships with brands and the strongest customer relationships survive even when if product quality goes down or even if the competition offers a better deal (Tenser, 2006). In essence, the relationship...
6 Pages (1500 words) Assignment

American Airlines: Supply Chain Nightmare

For this reason, it is necessary that all business sectors are carefully reviewed – as often as possible – for the appropriateness of their structure and their daily needs; managers may fail to evaluate with accuracy their firm’s needs, a fact that can cause the failure of plans applied on the relevant organization (Hardless, 2005). On the other hand, the needs of various organizational departments are different; the methods used for the improvement of a firm’s activities should be flexible taking into consideration the characteristics of the specific organizational sector, its strengths/ weaknesses but also its role in the development of the firm’s activities. Boeing is a firm with a long presence in...
15 Pages (3750 words) Case Study

Lorenz Curve Analysis

...Part Lorenz Curve Analysis By the analysis of Lorenz curve, the distribution of wealth (income or any other related factors) in a particular society is determined. Varied opinions are there regarding the significance of unequal distribution of wealth and income which tends to differ in many ways. But the importance lies in the context that whether the present scenario of a particular society is moving towards or away from the existing distributional pattern. The relationship structure of a community can be diversified. Different countries passing through the same phase or an individual nation passing through different phases must possess some explicable characteristics such that it can be analyzed by statistical, logical and mathematical...
8 Pages (2000 words) Term Paper

Relationship between Money Supply and Inflation in Saudi Arabia

Over the recent past, the effects of money supply, debt and inflation have become contentious issues for debate. Furthermore, frequent cautions concerning the risk of very large budgetary deficits aver that this would send up the upcoming state debt and capital rate as indicated by the rates (interests). As a nation, Saudi Arabia has a bi and enduring budgetary deficit over the past two decades and the government has been forced to go into the market so as to have loan access and to make up for the deficits. Given the impact of this on inflation and other economic variables, it's imperative and of great alarm for strategy architects (strategists) to understand how microeconomics has an effect on money supply, financial plan defici...
10 Pages (2500 words) Speech or Presentation

Impact of Forecasting Demand in Food and Beverage Service Organisation

Purchasing, storage, and production scheduling are some of the basic things needed to be adjusted periodically based on the demand in the market. It is not wise to purchase too many materials at a time when the demand was less. The to and fro movement of the material is essential for the smooth functioning of the storage area. Goods purchased and stored in the store must be despatched to the production area periodically before the expiry date to ensure that the organization might not suffer. But if the demand was poor, it is not possible to ensure the despatch of goods to the production unit which will result in wastage of materials. Generally, Purchasing, Storage and Production are the three areas in any manufacturing unit which...
6 Pages (1500 words) Research Paper

Money Supply Process

Liquidity of other assets counts on how effortlessly they are converted into notes and coins. In addition, as the degree of liquidity reduces, the difference between monetary assets and other financial assets becomes more and more blurred. As a result, in this context, the International Monetary Fund (IMF) has sought to sketch out standards for the calculation of the amount of money in an economy.

According to the IMF’s guidebook, the money supply is calculated as the joint deposit liabilities of the banking system and the currency liabilities of the central bank. They are held by households, companies, non-profit organizations and all public sector entities outside of the central government. In this authorized or...
8 Pages (2000 words) Assignment

Aggregate Demand Curve and Aggregate Supply Curve

... Inflation, recession, unemployment and economic growth have always been matters of concern for economists as well as for economies. The aggregate demand and aggregate supply models enable us to analyze changes in real GDP and price levels. While aggregate demand curve shows the relationship between price level and real GDP, the aggregate supply curve helps us understand the relationship between real domestic output and price level. The relation between price level and real GDP and price level and real output can be influenced by a number of determinants like exchange rate and taxes etc. Introduction Macroeconomics is related with the performance, structure and behavior of the economy as a whole and it is concerned with analyzing...
6 Pages (1500 words) Term Paper

Supply Chain Management: Conceptual Supply Network

A supply chain is a basic element of the growth of the manufacturing period. So far both could not work without it. A recent development in this era of new business strategies that must minimize risk in business by using friendly environment machinery, social acknowledgment as the requirement of the Government to the smooth and sequential running of a business operation. (Amlan M., Helen M., 2010). The supply chain could improve the cash transaction, manufacturing cost of materials, and communication flaws by planning of the company’s coordination to correlate finance, the society that helps to end-user and stakeholders. (Craig C., Dale R., Nov 2007) ( Seuring & Müller, 2008) (Lutz P., 2009).

Supply chai...
8 Pages (2000 words) Term Paper

Logistics and Supply Chain Strategy

Sustainability increases the mode of rail and sea freight and intermodal transport. The demand characteristics in some cases influence the choice of transport mode and even the need for safety stocks. The appropriate logistic strategy is essential for any organization as the manufacturing lead time is affected by the product characteristics and design. Globalization is a factor that causes longer lead times as a result of longer distances (Chan and Lee, 2005, p.78). The basis for any logistic strategy is the product. The product pricing is affected by the choice of transport mode. The production flow is smoothened with good demand predictability. Demand predictability is improved with the help of information technology through gre...
6 Pages (1500 words) Assignment

Purchasing and Supply

In numerous industrial sectors, the trend has been moving away from adversarial or arms-length supplier relationships to relational or obligational contracting forms of relationship, such as outsourcing. Boeing is one company that has embraced this trend as evidenced by the production of its 787 Dreamliner aircraft. As a way of reducing their aircraft timeline to 4 years from 6 years, Boeing began to outsource parts and to sub-contract other companies internationally. However, as stated by Brandes et al (1997), outsourcing tends to have the most success if it is based on strategic decisions including cost efficiency and core competency considerations, instead of being solely prompted by financial troubles. 
Whereas Boein...
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 Demand and Supply Curve for Tuna Fish for FREE!

Contact Us