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Demand and supply for DUREX in Austria - Essay Example

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Transaction costs economics and the new institutional economics have provided ways in which traditional economics model (On the assumptions of maximising behaviors by individuals) can be used in understanding the relationship between institutions and the reform process (Craciunesco 2006) Changes in investment activity, employment, and prices may be a recurring and frequent manifestation of economic development in a competitive and dynamic economy.
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Demand and supply for DUREX in Austria
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Download file to see previous pages Condoms play a very important role in preventing Human Immune Virus (HIV) transmission. According to the United States Agency for international development, current world supply and demand of condoms is too low to significantly impact on the pandemic. Many health practitioners and academics have argued that, condoms are the world most promising technology to prevent the transmission of HIV. This paper examines the demand and supply of condoms in Austria. In this paper, emphasis is placed on those factors affecting the supply and demand of condoms in Austria.
Supply and demand of condoms in Austria can analyzed using the basic supply and demand diagram. This model is an economic model based on price and quantity in a market (Humphrey 1992). In this mode, Economists believe that in a competitive market, price will function to equalize the quantity demanded by consumers, and the quantity supplied by producers, resulting in an economic equilibrium of price and quantity (tutor2u 2008).
The role of social marketers in the demand and supply of condoms in this area should not be neglected. ...
Social marketers here refer to charitable organization, social groups all preaching and cautioning the population of the need to be more health conscious. Their role can affect the demand and supply of condoms in Austria both negatively and positively. For example, where they emphasize zero sex before marriage, abstinence, one man one partner, the demand of condom will be affected negatively. But where their message is instead directed at the use of safe sex, the demand of condom in Austria will increase as shown in figure one above. That is demand will increase from DD to DD1 while supply remains constant as SS. Here, prices will increase in the short run should supply remain constant.

1.1.2Private Sector Distributors
In Austria like in many other European countries, the private sector is very active in the distribution of condoms especially within some educational and social institutions where the Durex condoms are distributed for free. In this regard the health awareness level of HIV will increase and the population will be more willing to use condoms but however in the absence of these the demand of condoms within Austria will fall due to the low health awareness level with respect to HIV prevention.

1.1.3 Other Donor Resources
At the international arena, the role of the donors in the health awareness campaign for HIV prevention should not be neglected. All things being equal, an increase in donors resources for the campaign against HIV will increase the supply of condoms and consequently reduce the price for condoms in most countries including Austrria. An increase in the production of donor's sponsored Durex condom production will consequently reduce the price and increase the demand of Durex condoms in the ...Download file to see next pagesRead More
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