Supply and Demand The Case of Milk

Supply and Demand The Case of Milk Milk prices are soaring. Millions of consumers all over the world buy milk products on a daily basis and are not willing to give them up. Climate change, competition among biofuel producers, trade policies and other factors drive global milk prices and turn milk into one of the most expensive food products (Arnold, 2007). â€Å"Cows are fed with corn and as more corn is diverted to energy production, feed costs and dairy farmers in turn pass those costs up the food chain† (Doherty, 2007).Advertising We will write a custom essay sample on Supply and Demand: The Case of Milk specifically for you for only $16.05 $11/page Learn More Simultaneously, international milk producers fail to cope with the growing demand for milk. The demand for milk products is at all-time high (Arnold, 2007). The roaring global economy and rising incomes in India, China, and Latin America make the task of producing enough milk extremely challenging and virtually unachievable (A rnold, 2007). Milk products are similar to gasoline: consumers cannot give them up even when the price grows unbearable (Doherty, 2007). Financial experts predict that, as the price of milk increases, the demand for milk products is likely to remain unchanged (Doherty, 2007). Apparently, the elasticity of demand for milk and milk products is extremely low. Put simply, the global demand for milk and milk products is not responsive to changes in milk prices. It should be noted, that elasticity is the central measure of market responsiveness in microeconomics (Baumol Blinder, 2008). The main determinants of demand elasticity include the nature of the good, availability of substitutes, household budgets, and passage of time (Rittenberg Tregarthen, 2011). The nature of the good is directly related to demand elasticity: necessities like food products tend to have inelastic demand curves (Baumol Blinder, 2008). This is particularly the case of milk, since many consumers perceive milk as the fundamental ingredient of their diets and large food manufacturers use milk in their products. Milk does not have close substitutes, and substitutability remains one of the main factors of demand elasticity in microeconomics (Baumol Blinder, 2008). Given that the demand for milk is highly inelastic, the demand curve for milk will look as follows: Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Fig.1. Inelastic demand for milk and milk products. Thousands of consumers spend their budgets on milk, because they believe it to be useful for their health. Consumers take the usefulness of milk for granted (Doherty, 2007). They treat milk as an excellent source of cheap proteins (Doherty, 2007). Therefore, if an advertising campaign spreads the message that milk helps to reduce weight, the quantity demanded will soar. Fig.2. Changes in quantity demanded and price after the adverti sing campaign. The price of milk in the short-term period will remain unchanged, as the growing demand for milk products does not reduce the costs of milk production. In short-term periods farmers will also experience the shortage of supply. In the long run, the price of milk will increase to create new market equilibrium. A mad cow disease epidemic will reduce the amount of milk in the market. The quantity demanded will drop, since customers will not be willing to purchase milk products and get infected. The supply curve will move to the left together with the demand curve. The price of milk will remain unchanged.Advertising We will write a custom essay sample on Supply and Demand: The Case of Milk specifically for you for only $16.05 $11/page Learn More Changes in the price of milk will cause no shifts in the demand curve. However, the quantity demanded will change. Consumers will want to purchase more milk at a lower price. An increase in the demand for milk products will manifest through movements along the demand curve. However, as the demand for milk increases, most farmers will fail to supply enough milk to the market, followed by the shortage of milk products. Consequentially, changes in the price of milk may move the supply curve to the left: possibly, milk manufacturers will have to adopt new technologies to meet the growing demand for milk. How the government price ceiling for milk affects the supply and demand of milk products depends on whether the ceiling price is below or above the market-determined equilibrium. Actually, the government price ceiling for agricultural products is a frequent object of microeconomic analysis. The government is believed to produce heavy influences on the stability and equilibrium in the milk market. The government-imposed price ceiling above the market-established equilibrium price will have no effects on either the supply or demand of milk. By contrast, the ceiling price below the market-e stablished equilibrium will cause profound effects on the supply and demand of milk. Farmers will not be able to charge the market price for milk. Some suppliers may choose to leave the milk market. Reduced supply will cause the shortage of milk products in the market. Consumers will fail to meet their demand for milk and milk products. Price control is one of the most controversial aspects of the market-government relationship. Government price ceilings reduce consumer prices, whereas price floors increase firms’ revenues and incomes (Economics Help, 2008). Consumers believe that government price ceilings limit suppliers’ ambitions and make goods and service affordable. Government price ceilings alter the market equilibrium in the agricultural market. Price controls are associated with numerous disadvantages. First, government price ceilings lead to the shortage of goods in the market (Economics Help, 2008).Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Second, government controls of minimum prices raise consumer prices and result in oversupply of products and production inefficiency (Economics Help, 2008). Given that milk does not have close substitutes and is considered a food necessity, its demand is inelastic. As a result, any increase in price for milk will inevitably lead to an increase in total revenues, as slight reductions in quantity demanded are a trifle, compared with the revenues earned from increased prices (Quick MBA, 2011). Conclusion Milk prices are soaring. More consumers are willing to have milk in their diets. Climate changes, new technologies, and increased consumer incomes make the task of producing enough milk virtually unachievable. The elasticity of demand for milk and milk products is extremely low. Put simply, the global demand for milk and milk products is not responsive to changes in milk prices. Many consumers perceive milk as the fundamental ingredient of their diets and large food manufacturers use m ilk in their products. Milk does not have close substitutes, and substitutability remains one of the main factors of demand elasticity in microeconomics. When an advertising campaign spreads the message that milk helps to reduce weight, the quantity demanded will soar. Changes in the price of milk will cause no shifts in the demand curve. Any increase in price for milk will inevitably lead to an increase in total revenues, as slight reductions in quantity demanded are a trifle compared with the revenues earned from increased prices. References Arnold, W. (2007). A thirst for milk bred by new wealth sends prices soaring. The New York Times. Retrieved from nytimes.com/2007/09/04/business/worldbusiness/04milk.html Baumol, W.J. Blinder, A.S. (2008). Microeconomics: Principles and policy. Boston: Cengage Learning. Doherty, R.E. (2007). Milk demand stays strong despite high prices. Reuters. Retrieved from reuters.com/article/2007/06/20/us-milk-prices-idUSN2024940220070620 Economics Help . (2008). Price controls – advantages and disadvantages. Economics Help. Retrieved from economicshelp.org/blog/economics/price-controls-advantages-and-disadvantages/ Quick MBA. (2011). Price elasticity of demand. Quick MBA. Retrieved from quickmba.com/econ/micro/elas/ped.shtml Rittenberg, L. Tregarthen, T. (2011). Principles of microeconomics. Flatworld Knowledge. Retrieved from flatworldknowledge.com/node/28279#web-28281

Hosting a Book Launch Party on Facebook

Hosting a Book Launch Party on Facebook Whether or not you’re a Facebook fan, hosting an online launch party for your just-published book can gather readers and sell books.   Real-world book launches are useful for getting the word out about your print book via press releases to newspapers, but sometimes the response in terms of actual attendees leaves something to be desired. For a Facebook launch party, attendance is only limited Before you sign on to Facebook to create the event, you’ll need to design a header for the event page, the same size as your Facebook header (or get a design friend to put it together).   As in all design, colorful and eye-catching will draw the most interest.   Make sure the header gives all necessary info about the event in one glance (i.e., include the words â€Å"Book Launch†). Next, log on to your Facebook page and click on â€Å"Create an Event† on the right side of the page.   Upload your cover photo, choose the date, and fill in the rest of the fields.   One to two hours is a good amount of time- it takes a while for people to read and comment, and you don’t want to tire your fingers too much (once it DOES get going, you may be typing constantly).   When you’re done, click â€Å"Publish.† Post an opening comment to explain the event, and click on â€Å"Share† to invite your friends.   You can also add the event to your news feed.   You’re ready to go!   If there will be some time passing between the setup and the event, check the page regularly for questions (â€Å"How does this work?† comes fairly frequently). Now for an important tip:   Before the party starts, gather some snippets of information- short excerpts, a bit about why you wrote the book, the cover graphic, table of contents, a short

How are these works of arts reflect the tradition(s) of avant garde Essay

How are these works of arts reflect the tradition(s) of avant garde - Essay Example (Acton 25) A further understanding of the characteristics of avant-garde art can be achieved by examining paintings such as â€Å"The Scream† by Edvard Munch; Henri Matisse’s â€Å"The Dance† and â€Å"The Dance II†; â€Å"Portrait of Ambroise Vollard,† â€Å"Three Dancers† and â€Å"Woman with Mandolin† by Pablo Picasso and â€Å"Woman in Blue† by Fernand Leger. Expressionist artist Edvard Munch’s â€Å"The Scream† depicting an indistinct shape of a human whose face and mouth shown as distorted in fear or in anxiety. The figure seems to be unnerved by someone or something but may probably also be frightened by the bloodied sky overhead. In this painting from the Expressionist period, the artist portrayed the figure as an indistinct form to accentuate the raw emotion. The core of Expressionism was to paint and convey emotions through art therefore Munch exhibits in this painting the avant-garde way of addressing the principle of the art movement, which is to purely capture and express emotions through art without defining the form. Henri Matisse’s first version of â€Å"The Dance† shows lightly-hued human figures dancing and floating in plain green and blue background while â€Å"The Dance II† shows the human figures in an intense shade of red dancing and floating in a more vivid blue and green. The two paintings each possess an avant-garde character, the first version discards the foreshortening technique of painting; Matisse employed colors instead to give the figures an impression of distance and movement thus creating an innovation on the use of colors for his artwork. â€Å"The Dance II† has the same innovative avant-garde character as the first version, however, the artist made another new approach for the second version by using colors in their unmodified or slightly modified value resulting into colors that are more vibrant and more defined impression of

Social media make your life worse Essay Example | Topics and Well Written Essays - 1500 words

Social media make your life worse - Essay Example Social media is a platform where people from different backgrounds interact, exchange ideas or information in virtual networks. It depends on mobile and web based technologies to create platforms through which communities use, share and discuss the already existent information or content. Social media changes how communications are effected between organizations, communities and individuals at different levels. Social media has always been associated with positive incomes yet this is not the case, however its benefits are countless (Nigel 60). The negative side of the social media has impacts felt hard and they could destroy one’s view of the social sites, the world and even themselves. The benefits of using social media include; building good reputations, online marketing, career opportunities and income. For the individuals, they are able to improve their social relationships as well as networking as observed from an interview conducted between Crawford and Wang. Crawford ad mits to the advantage of the social media by saying â€Å"social media increase our social interaction and give us more ways to make social connections. It is help to make some new friends, something like that, everyone should like social media.† Social media uses different technologies that include; use of blogs, wall posting and crowd sourcing. Social media could interfere with the way someone views some ideas hence make one’s life worse if it’s not used in the right manner for the desired purpose. As Crawford states, â€Å"Social media wastes our time in chatting but we are totally updated with the present news which were happening around us. So, don't see social networking as threats but just as the opportunities where we can interact with the people globally.† It is evident that as much as social media has attractive features that make one glued to their mobile phones or computers for more time, it leads to time wastage as internet users spend more t ime on the social media site that on any other site. A research in the US shows that the total time spent on social media in mobile phones and personal computers increased by 37% in a year that is 121 billion minutes in 2012 compared to 88 billion minutes in 2012. Some school children even spend more time on social media than on their books; this corrupts their mind and makes them not concentrate on their school work. All this time wasted or spent unwisely in the social media leads to poor grades in school and under performance in the work stations. Social media has always been criticized because of its exclusiveness that is most sites do not allow the transfer of information from one site to another. This therefore leads to disparity in the sharing of information that is available due to untrustworthiness, informational reliability, media content ownerships and the different meanings of information as displayed by these social platforms (Kaplan 72). Information from one site to ano ther cannot be transferred to another hence creates individualism, which allows them to advertise and display their own information (Nigel 42). Some information that is displayed on most social media sites is destructive rather than constructive to one’s mind and view of daily activities. Some information regarding cults, death, use of warfare weapons could make one curious and ready to venture or find out the truth about such information. Pornographic pictures and linkages destroys one’s brain because they tend to be addictive, this leads to an increase in the number of rape cases, violence and other activities that are against our way of culture and belief as people from different backgrounds (Nigel 55). Social media leads

Imperialism and 1st World War Essay Example for Free

Imperialism and 1st World War Essay The portrayal of the artists is indeed a true picture of the horrors of World War I which cannot be envisioned by just reading accounts of the war as given in different readings. The paintings reveal the disgusting events that will surely put the shivers into the generation of today in realizing the atrocities and soul stirring hardships that were experienced by all those who were part of the war. While the monarchy of the combating countries relaxed and simply gave orders it were the soldiers representing the states that bore the brunt of the chilling circumstances. Soldiers were silent observers in seeing their colleagues butchered in helplessness while they themselves were lucky to come back alive into their trenches unaware of what the next day had in store for them. The medical corps and nurses were always on the alert to receive the dead and grievously wounded soldiers while those who were captured had to submit to the inhuman tortures at the hands of their captors. Several soldiers were maimed in leading a life of revulsion, helpless in leading a life of misery. The onslaught of gas attacks made several soldiers to die in agony while many suffered psychologically in being unable to lead normal lives. The fear of gas attacks was so severe that soldiers had to always move with gas masks in specified territories. There was always a sinister plan underway and it became difficult for the combatants to judge about who friends are and whom to understand as enemies. There was always an ongoing process to build tunnels and infrastructure to face the challenges of enemy attacks in a war that never seemed to end. All who were physically fit could be expected to be called for war duties with little hope of returning alive. The war was extensively destructive as nothing was spared and all means were used to inflict the maximum damages irrespective of the intensity of suffering and loss to life. Human life appeared to have no value nor did the sufferings of the masses for the leaders who gave orders to fight with the sole objective of winning the war. The focus was on winning over the adversaries by whatever means that was possible in using weapons and other means that inflicted maximum loss and suffering. References Discussion, Imperialism and 1st World War, http://dl. bergen. edu/webct/entryPageIns. dowebct

Costs And Contributions: The Wave From South Of The Border :: essays research papers

Costs and Contributions: The Wave From South of The Border Every year, hundreds of millions of people enter the US via land ports of entry, and the INS each year apprehends over 1.3 million aliens at or near the border. Over 90 percent of those apprehended near the border are Mexicans, and some who enter the US legally and illegally are carrying drugs into the US. This influx of illegal immigrants from south of the border has created quite a stir in many places. Is this good that people are coming to the U.S.? What will happen if this pattern keeps up? Will they steal our jobs? What effect will this wave of people have on us? These questions plague many and deserved to be answered in the following paper on: "Costs and contributions: The Wave From South of The Border". "Dowell Myers (USC) reported on his double cohort method--by age and year of entry-- of analyzing what happened to immigrants arriving in the seven southern CA counties after 1980. His analysis shows that especially young immigrants make considerable economic progress after their arrival--as measured by their total incomes--and that some of their behavior converges rapidly to that of natives, e.g., they rapidly abandon buses and drive cars to work. In southern CA, one-third of all bus riders are recent immigrants. Myers noted that immigration is raising other issues, including overcrowded housing. The US definition of acceptable housing was two or less persons per room until 1960, when the definition was change to one or less per room. However, as immigrants moved into southern CA, overcrowding jumped, raising questions about how aggressively cities should enforce housing codes developed during a non- immigrant era." Many are haunted by the question: will we be hurt? Over crowding has had a major impact on families living near the Mexican border lowering standards of living and living space as well. Also, citizens wonder about the filthy scum that comes from south of the border-are all illegal immigrants scum? George Vernez outlined an ambitious project that is dealing with the question of whether immigration is a plus or minus for CA by examining the effects of immigration on internal migration, on wages, and on public finances since 1960. Those studies showed that immigrants from most countries do catch up to similar natives in average weekly earnings after 10 to 20 years, but not immigrants from the major country of origin--Mexico. Furthermore, immigrant children tend to follow in their parents' footsteps, meaning that the children of Asian immigrants tend to do well in school, etc., while the children of

Human as a Complex Unit of Life Essay

The human body is a complex system of cells, most of which are grouped into organ systems that have specialized functions. These systems can best be understood in terms of the essential functions they serve: deriving energy from food, protection against injury, internal coordination, and reproduction. The continual need for energy engages the senses and skeletal muscles in obtaining food, the digestive system in breaking food down into usable compounds and in disposing of undigested food materials, the lungs in providing oxygen for combustion of food and discharging the carbon dioxide produced, the urinary system for disposing of other dissolved waste products of cell activity, the skin and lungs for getting rid of excess heat (into which most of the energy in food eventually degrades), and the circulatory system for moving all these substances to or from cells where they are needed or produced. Like all organisms, humans have the means of protecting themselves. Self-protection involves using the senses in detecting danger, the hormone system in stimulating the heart and gaining access to emergency energy supplies, and the muscles in escape or defense. The skin provides a shield against harmful substances and organisms, such as bacteria and parasites. The immune system provides protection against the substances that do gain entrance into the body and against cancerous cells that develop spontaneously in the body. The nervous system plays an especially important role in survival; it makes possible the kind of learning humans need to cope with changes in their environment. The internal control required for managing and coordinating these complex systems is carried out by the brain and nervous system in conjunction with the hormone-excreting glands. The electrical and chemical signals carried by nerves and hormones integrate the body as a whole. The many cross-influences between the hormones and nerves give rise to a system of coordinated cycles in almost all body functions. Nerves can excite some glands to excrete hormones, some hormones affect brain cells, the brain itself releases hormones that affect human behavior, and hormones are involved in transmitting signals between nerve cells. Certain drugs—legal and illegal—can affect the human body and brain by mimicking or blocking the hormones and neurotransmitters produced by the hormonal and nervous systems. Reproduction ensures continuation of the species. The sexual urge is biologically driven, but how that drive is manifested among humans is determined by psychological and cultural factors. Sense organs and hormones are involved, as well as the internal and external sex organs themselves. The fact that sexual reproduction produces a greater genetic variation by mixing the genes of the parents plays a key role in evolution.