Thursday, December 12, 2019
Effect of Price Inelasticity on Demand-Free-Samples for Students
Question: Write an annoted bibliography on If a business drops its price will it always increase demand - and will it make more profit? Answer: Article 1 Supply and Demand: Why Markets Tick Name of the resource Finance Development, 2017 Type of resource Government Site Name of the author / publisher Irena Asmundson Main findings The change in Price can take place for several reasons such as technology consumer preference, weather conditions. However the rate of change of demand is dependent on sensitive/insensitive of the changes in price. Usefulness- Consideration of market changes Reliability Compliance with International Monetary Fund Bias The website regularly updates its information Currency Updated on July 29, 2017 Strengths and/or weaknesses The weakness has been assessed with Complications from the distinguished features Article 2 - What is the effect of price inelasticity on demand? Name of the resource Investopedia, 2015 Type of resource Commercial site Name of the author / publisher Investopedia Main findings It has been discerned that price inelasticity has been conducive for the performance of the business. It offers the firms with the various types of the flexibility factors as per the change in demand. In case of price-inelastic goods or services a small change in the quantity demanded has been seen with percentage change in price. This consideration is seen to be having significant impact on the businesses and affects demand and total revenue. In case the goods are inelastic the quantity demanded wouldn't offset the decrease in price. This will result in lower revenue. If the prices of the inelastic goods are increased, there will be an increase in the total revenue and lead to lower amount of quantity demanded. The business dealing in price-inelastic goods are better equipped for profit maximization and better protected against downturns. Usefulness- Consideration of substitute products Reliability Realisable e-learning source Bias The website regularly updates its information Currency Last updated on January 29, 2015 9:31 AM EST Strengths- Consideration for luxury and ordinary products. Weakness- No consideration for Giffen goods Article 3 - The research on the impact of the changes of commodity price level in the world commodity exchanges on variation of general price level Name of the resource Economics-sociology.eu, 2017 Type of resource Journalistic Site Name of the author / publisher Mie?inskien? and Lapinskait? Main findings The main intention of the study is to investigate the influence of the changes pertaining to the commodity price level. The main objective of the research is to analyse the commodity price level in the world commodity exchanges. The main result of the study has been seen with the changing price level in Lithuania is dependent on the changes of commodity prices in world commodity exchanges. This has been mainly in terms of prices of Aluminium, cocoa, coal and oil. Usefulness The study is based on global level Reliability Accredited by Economics Sociology, Vol. 7, No 4, 2014 Bias Consideration of recent issues in economic development Currency Journal published in 2015 Strengths and/or weaknesses The changes in demand for price around the world Article 4 - The effects of Price on Demand Name of the resource Ahmad et al., 2014 Type of resource Journal Name of the author / publisher Main findings Main findings The study has revealed that when the change in price is restricted to the partial blockage of energy used and the demand of the consumers responding to the average price and reporting to the marginal price. Since several empirical evidence has shown the practical significance the change in the demand has been application due to several other factors. Usefulness The implementation has been conducive in the energy sector Reliability The study has been accredited by National Research Council Bias Consideration of the recent changes Currency Publication date is 2014 Strengths and/or weaknesses The main weakness is non consideration sectors other than energy Article 5- Impacts of Price Changes on Consumer Surplus Name of the resource Impacts of Price Changes on Consumer Surplus, 2016 Type of resource Commercial Site Name of the author / publisher Boundles.com Main findings The study has revealed that the increase in price will lead to a decreased amount of consumer surplus. It has been further discerned that there will be an increase in the consumer surplus in case there is benefit from the lower price which exceeds the costs from the shortage. The consumer surplus is always seen to be decreasing in nature in case the binding of the price floor in a market above the equilibrium price. Price helps in the defining the consumer surplus and the demand, when the price is pareto optimal or is seen to be at equilibrium. Usefulness Determination of price change and consumer surplus Reliability - The website regularly updates its information Bias It has updated the versions and this is based on version 5 Currency Published in 2017 Strengths and/or weaknesses The strength has been seen in terms of determination of consumer surplu References Ahmad, A.S., Hassan, M.Y., Abdullah, M.P., Rahman, H.A., Hussin, F., Abdullah, H. and Saidur, R., 2014. A review on applications of ANN and SVM for building electrical energy consumption forecasting.Renewable and Sustainable Energy Reviews,33, pp.102-109. Economics-sociology.eu. (2017). [online] Available at: https://www.economics-sociology.eu/files/09_71_Miecinskiene_Lapinskaite.pdf [Accessed 17 Aug. 2017]. Finance Development | FD. (2017).Finance Development. [online] Available at: https://www.imf.org/external/pubs/ft/fandd/basics/suppdem.htm [Accessed 17 Aug. 2017]. Impacts of Price Changes on Consumer Surplus. (2016).Boundless, [online] p. Available at: https://www.boundless.com/economics/textbooks/boundless-economics-textbook/economic-surplus-4/consumer-surplus-50/impacts-of-price-changes-on-consumer-surplus-193-12291/ [Accessed 17 Aug. 2017]. Investopedia. (2015).What is the effect of price inelasticity on demand?. [online] Available at: https://www.investopedia.com/ask/answers/012915/what-effect-price-inelasticity-demand.asp [Accessed 17 Aug. 2017].