Elasticity Essay Example | Topics and Well Written Essays - 500 words - 2

Elasticity - Essay Example An equilibrium point of quantity is obtained when the two demand curves are drawn on a single graph. The inelastic demand for the veteran smoker clearly conforms to demand rule; when the price for cigarettes goes up, demand falls and vice versa. (See fig (3) on scanned document) The government always increases the value added tax on cigarettes in order to reduce demand and also contain incidence of increased lung cancer due to smoking. Looking at fig (4) where the current equilibrium price is at three dollars and the quantity demanded is. When the price increases to six dollars, the supply curve  shifts upwards and moves to left to create a new supply curve. This shift and movement show how the markets, specifically suppliers, are reacting to the positive change in price. The quantity demanded by the veteran smoker and the new smoker proportionately reduces. (See fig (5)). The consumer that evidently changes there smoking behavior drastically is the new smoker. As per figure five, when the price rises to six dollars, the shift in supply curve form  to causes the quantity of cigarettes demanded by the veteran smoker to reduce from  as the supply curve moves upwards along the  curve. On the other hand for the new smoker, the shift in supply curve form  to causes the quantity of cigarettes demanded to reduce from. Since, , it is justifiable to say that the new smoker reduces his or a rate of consumption as a result of increase in cigarette price. One can also say due to the fact that the veteran smoker is used to smoking a given number of cigarette packs, changing his or her norm due to price changes will considerably be negligible. The burden of increased price, in most cases is transferred to the consumer in form of value added tax. Increased tax, will usually lead to increase in the cost of raw materials and in turn the producers and suppliers will want to transfer this cost to consumers in form of value added

Winners and Losers in the Arguments for Free Trade Essay

Winners and Losers in the Arguments for Free Trade - Essay Example This surge in the flow of services and goods will undoubtedly increase competition that, in turn, will lead to a decrease in the price that consumers have to pay for goods to the traders. When these elements are all combined, most economists are of the belief that global and individual economic growth will be achieved. The comparative advantage theory states that every country will produce goods at which they are extra efficient at production. So long as each country is able to produce goods that give it more comparative advantage, trade becomes mutually beneficial. One argument for free trade is specialization. Through exporting and importing goods, nations come to rely on each other for the production of services and goods at which it might not be too efficient at doing itself (Voituriez and Ekins, 2009, p. 11). When producers and countries are allowed to specialize in production of various services and goods, they attain more efficiency in service and goods production. It also let s individual countries produce services and goods for some things that they may have not been in a point to back when they had to produce everything they needed themselves. Specialization also allows countries, which had to provide services and goods for themselves when they were still not available via trade, to carry out other tasks. Yet another argument for free trade is efficiency. Free trade enhances a country’s efficiency, which, in turn, leads to an increase in the number of services and goods that country or individual can produce using the same resources (Voituriez and Ekins, 2009, p. 11). This encourages corporations to look for other ways of decreasing wasted resources that, in turn, decrease the production costs of goods. Various firms may also seek to increase their production because of the increased demand that will inevitably rise due to the existence of free trade. This will happen when they realize that it is possible to produce extra units at a per unit pri ce that is decreased. One more argument for free trade is an increased standard of living for the involved parties. Increased specialization and efficiency allow these parties to attain a higher living standard. As more services and goods are purchased and sold via exportation and importation, the amount of cash resources that are available in these nations can only increase. With individuals making more cash, they possess more money that they can spend on services and goods that they could use to import services and goods that can satisfy their other needs (Voituriez and Ekins, 2009, p. 12). Finally, free trade allows its participants to attain a better quality of life. Besides monetary gains to be gleaned by countries involved in free trade, economists use the argument that free trade highly improves the quality of life for its citizens. Free trade leads to the decrease in the possibility of war outbreaks, enhances the security of the nation, and leads to increased cultural enrich ment and awareness (Voituriez and Ekins, 2009, p. 13). The belief is that these countries depending on each other for services and goods are not likely to go to war with each other. Additionally, it is likely that they will rely on each other’s defense when a situation pops off. This idea of free trade also exposes individuals to various cultures that exist around the world that result in their personal enrichment. Winners in Free Trade The biggest winners in free trade agreements are transnational corporations. Free trade agreements erase tariffs, meaning that corporations pay less for them to sell their products. With reduced tariffs, for example, electronic producers can

Medium Research Methodology Paper Example | Topics and Well Written Essays - 1000 words

Medium Methodology - Research Paper Example A quantitative approach was adopted for this study. It was vital to impose primary demands on the data collection. This is in order to study and know how the British national newspapers have constructed ‘binge drinking’ as a social problem. The research study is primarily and mainly dealing with how have the British national newspapers constructed ‘binge drinking’ as a social problem and not generalized approaches (Iwere, 2010). Additionally, the relationships between the variables will be analyzed in great detail by the research. The analysis will include testing the variation effect within factors which influence the British national newspapers to construct ‘binge drinking’ as a social problem. The approach (quantitative) was the most suitable approach for the study since the research question required needed a statistical answer and solution. Critcher, (pg. 154) stated that a quantitative study approach is often characterized by statistical measurements and figures whereas a qualitative approach is best suited for research questions which require a descriptive solution and answer. The research focused on finding the coverage of a small sample of British newspapers on binge drinking. Consequently, a quantitative paradigm was used to collect data for the research because it is more relevant and suitable. This was made up of newspaper articles which were meant and aimed to illustrate the findings of the study from the perspective of the research participant. To satisfy the demands of depth, the need for detailed information or data about binge drinking and the British media necessitated the use of more newspaper articles. Also, the use of many articles enabled the study to come up with reliable results and information.

Ted Baker Plc Ratio Analysis Essay Example | Topics and Well Written Essays - 1250 words

Ted Baker Plc Ratio Analysis - Essay Example The P/E ratio for Ted baker Plc shows that the company has 1 worth of annual- per share earnings for every 17.4 in the share price. The company's P/E ratio is lower than that of the companies in the same sector. This ratio reveals the percentage of dividends paid to shareholders in dividends. Ted baker Plc's dividend payout is 39.92% of the earnings per share and the retail apparel industry's average for dividend payout is 20.93%, therefore the company has more potential for investment in terms of dividend paid by the company. The gross margin assesses the company's profit after accounting for production and distribution costs. The company's gross margin is 59% of the total turnover, which is lesser than the industrial average for this ratio. This shows that the company is incurring less cost of sales than the other companies in the industry, which is influencing its gross margin of profit. The operating margin is assesses the profitability of a company after accounting for all the operating costs. The operating margin for the retail apparel sector is showing as negative, whereas the operating margin for Ted baker Plc is 16.5% of the total turnover. It is much attractive for an investor to invest in a company with high profit margins. The Earning Per Share analysis is important for the investors who are interested in the market of price of company's shares. The EPS of Ted baker Plc is higher than the sector average, therefore has potential for investment than the other companies in the industry. EPS Growth Sector Ted baker Plc 97.11 20.7 The Earning Per Share of Ted baker Plc is growing at a slower rate than that of the industry. This shows that although the company has offered more EPS than the other companies in the same sector for the year 2005, but it has a much slower growth rate of EPS than its competitors in the industry. Dividend per share Sector Ted baker Plc 0.03 0.108 The dividend per share paid by the company is more than that of the other companies in the sector. Therefore, Ted baker Plc offers investment potential for the investors that invest in the company to gain return out of dividends paid by company. Dividend estimate Yield Sector Ted baker Plc 2.41 2.49 The dividend yield ratio is calculated by comparing the latest dividend paid by the company with the current market price of the company's shares. The dividend yield of Ted baker Plc is almost the same as paid by the other companies in the industry. Interest expense coverage Sector Ted baker Plc 108.66 76.71 This ratio reveals the ability of a company to cover its interest expense after accounting for all the operating costs incurred by the company. Ted baker Plc's interest cover ratio is lesser than the sector average. In the year 2005, the company generated returns of about 76.71% of the total interest expense, not enough to cover the interest even a single time. CONCLUSION After the above analysis, it is clear that Ted baker Plc off

Money & Banking Assignment Example | Topics and Well Written Essays - 750 words

Money & Banking - Assignment Example It has been stated that the measurement problems occur especially during the business cycle contraction where the values are understated. Unemployment rate is understated due to a number of reasons. First off, underemployment is not regarded as unemployment, but is instead viewed as being employed. In tough economic times, job cuts are common in many organizations. Many people subsequently seek out jobs that do not utilize their full skill and knowledge potential (Horvitz 33). Though these jobs are temporary income earners to cater for the person’s daily need, the Bureau of Labor Statistics view these people as fully employed and does not count then against the national rate, leading to massive understatement. If a person who used to take home $140,000 each year has to take a job that offers $22,000, it is unfair to consider this person as employed (Horvitz 47). New entrants into the labor force are not considered unemployed. If for instance, a stay at home mum seeks out employment due to harsh economic times and fails to get employed, she will not get counted as unemployed by the authorities. There exist people under the age of sixteen who have taken up jobs to assist their families. Since they are below the age of 16, they are not counted as employed and if they fail to find work, they do not count as unemployed either. This adds up to massive understatement of the unemployment rate. The Bureau of Labor Statistics only considers one unemployed if you are actively involved in job hunting. Individuals who are jobless and are no longer searching for work are not counted as unemployed. They are therefore not included in the unemployment values rolled out every month, a phenomenon that without a doubt leads to understatement by massive margins (Horvitz 77). Some workers have had to involuntarily take up job sharing, working less hour shifts

Historical and Philosophical Lab Report Example | Topics and Well Written Essays - 250 words

Historical and Philosophical - Lab Report Example Other religious groups are sponsoring the schools. In this case, the Christian communities act as mentors to the young children as well as a watch dog to ensure that children’s rights prevail. We have also been witnessing communities participating in schools development; this is through fund raising, advice and other schools activities. The community has also been offering resources to the educational sector at a favorable term because educational institutions are part of the community. Other impacts from the community in which we have been witnessing between the community and the educational sector are by availing a conducive environment for effective education (Chandler, and Nita 26). The community is also working hand in hand with the educational sector by suppressing conflicts of interest. In this case, the community works as the watch dog by ensuring that awarding is by merit. It also ensures rights and concerns of children are respected by all stakeholders, and the overall activities are running in line with the provisions in the educational acts (Chandler, and Nita 33). From this article, we can openly identify different duties played by the community in relation with the educational sector. We can also analyze impacts of the community to the educational sector. We learn that the community is a significant figure in reference to children’s

Policy Action Memorandum Term Paper Example | Topics and Well Written Essays - 1500 words

Policy Action Memorandum - Term Paper Example On the positive side could be considered a certain impact on the geopolitics of the region, namely the possibility of curbing or at least weakening Iran, insofar as the regime of the incumbent Syrian president, Bashar al-Assad, is a key Tehran’s ally4. There are several options available for dealing with the issue, as follows: arming the opposition forces with more sophisticated weapon systems, which might alter the balance on the ground; either surgical air strikes or a wider air campaign that would hamper the regime forces’ ground operations and weaken their capabilities, including aerial superiority over the rebels; the establishment of air exclusion zone; and a direct, full-scale ground involvement. Although the latter option is considered the most costly one, it is the only way the US could guarantee – to a certain degree however – its long-term interests in the region, including such related to the national security. Executive Summary The ongoing con flict between Bashar al-Assad’s regime and the opposition forces in Syria poses serious threats to both the US national security and long-term interests in the Middle East. The civil war is steadily destabilizing the region as whole and Syria’s neighbors in particular, most notably Lebanon and Israel. Apart from the humanitarian crisis, with over one million Syrian citizens having fled to Jordan, Iraq, Lebanon and Turkey and over two other million people internally displaced because of the fighting5, the conflict could easily get internationalized mainly due to the various outside actors involved6. Syria’s vast chemical weapons arsenal is among the biggest threats to US national security mainly due to the real probability of being taken by Islamic extremist organizations after the fall of the regime. On the other hand, the likely use of chemical weapons – especially against alleged â€Å"external aggression†7 – might cause the things to get completely out of hand, including retaliation strikes from the parties concerned, further escalation of the conflict, etc.; hence a rapid and grave deterioration of the already volatile situation in the region of the Middle East. This PAM recommends a US-led full-scale intervention in the Syrian conflict, including ground, naval and aerial forces, preferably in a wide coalition with key Western allies and various partners from the Arab world, such as the coalition that fought against Saddam Hussein during the First Gulf War. The direct ground involvement is the only option that would guarantee that the Syrian chemical arsenal will not be seized by terrorist organizations and/or irresponsible governments, or rogue states, which would later use it for their own purposes, most likely against key American allies or the United States themselves. The Policy Issue and it’s Relation to US National Security The ongoing Syrian civil war represents a significant issue in regard to the U S national security and long-term interests in the region of the Middle East. First of all, the conflict is a major destabilizing factor in a volatile region that is by definition prone to unrest and violence. Apart from Iran’s geopolitical ambitions, this particularly rings true as far as Lebanon and Israel are concerned. Hezbollah has already got involved in the conflict, whether indirectly – via funding, arming and training the local Popular Committee militias,