Price Elascity of Demand Essay Example for Free

Price Elascity of Demand Essay Price Elascity of Demand BY vtc901ee The price elasticity of demand (PED) is a measure of how much the quantity demanded of a good responds to a change in price of the good (Mankiw 2007, p. 90). It is a form of measure to determine how willing consumers are to move away from the good as the price of the good rises. Most of the time, there are factors that determines the PED, such as availability of close substitutes, necessities versus luxuries, definition of the market and time horizon. In order to calculate the PED, a formula is calculated using the percentage change in the quantity demanded divided y the percentage change in the price. Elastic demand that has the coefficient of greater than 1 suggests that there would be a significant change in quantity demanded when there is a little change in price while inelastic demand has a coefficient of less than one, which has a little change in quantity demanded even when there is a significant change in price. Unitary demand occurs when there is a coefficient of exactly one and there is an exact change in quantity demanded in proportion to the change in price (Bolotta et al. 2002). There are two ways to calculate the PED. Firstly, it is called the point method or also nown as geometrical method (DEISU 2008). Under this method, we measure the elasticity of demand at any point of a demand curve using the formula, Elasticity at any point on the straight line can be calculated using the point method provided that the demand line is linear. The better way to calculate the PED is by using the midpoint method, which is to calculate the PED between two points on a demand curve by averaging the 2 initial and final points chosen. The midpoint approach averages the prices and quantities demanded, thus arriving at an average elasticity estimate for the range of values covered on the demand curve. The formula is, The product that is chosen to explain the theory of PED is rice. Rice is one of the perfect examples of inelastic demand applied in todays world, especially in Malaysia. There was an interesting finding made by Nik Mustapha and other researchers, where they find that rice tends to be inelastic, showing that rice has already occupied a special position in Malaysian diet as it is a staple food among the population (FEMI-JPM 2008). Other countries in Asia are also affected by the demand for rice. In Thailand, the export price elasticity of demand for rice is ranged -1. 2 and -1. 9, which shows that it is an inelastic demand (FEMI-JPM 2008). The graph would be similar to Figure 3, whereby it has a steeper slope. This indicates that the consumer would pay at almost any price set in the market for the good as it is a necessity in food for them. The PED of the rice is important in terms of their pricing decisions as the total revenue can change along the demand curve, and this in return depends on the PED. In this case, rice is considered to be inelastic, and for all inelastic demands, an increase in price will have an increase in total revenue (Mankiw 2007, p. 95). However, this is also crucial in determining the maximum profit that can be made using the PED. If all the farmers have good harvest, a large drop in price is necessary to encourage consumers to use the additional grain (Ingrimayne. com) this will cause the farmers income to decrease, thus it is important to know the PED of the rice. For instance, if the quantity of rice increases by 20%, it means that there could be a decrease of price by 40%. In explaining on how the tax being imposed by the government can affects the production of rice, a fully labelled market diagram for rice (inelastic demand) is illustrated. Consumer surplus is the extra amount consumers are willing to pay from the ctual price whereas producer surplus is the amount sellers are paid for a good minus the sellers cost of providing it (Mankiw 2007, pp. 139-144). Before the government impose tax on rice, consumer surplus and producer surplus are determined by equilibrium of price in the market. By imposing the tax on rice, the quantity of rice sold falls and there is a wedge between the price that buyers pay and the price that sellers receive. Both surpluses are reduced because there is tax revenue imposed by the government, resulting in a deadweight loss, a condition where a fall in surplus exceeds tax revenue, a form of market distortion (Mankiw 007, p. 162). These tax revenues are classified as government revenue. Government revenue may differ depending on the size of the tax, as different tax size generates different tax revenue. Since an inelastic demand decreases the quantity produced by a little, it can be assumed that the deadweight loss is also smaller, causing the tax revenue to increase slightly, as shown in Figure 10. Next, we will discuss the tax burden of the production of rice. Tax incidence is the distribution of tax burden among the participants in the market. In the rice market, taxes imposed on the buyers and the sellers are the same no matter whether the tax s charged on buyers or sellers, but the only difference is that who will send the money to the government (Mankiw 2007, pp. 24-127). To prove that, the following are the examples when a tax is charged on either buyers or sellers: The overall social welfare will be clearly shown once the effects of tax have on the quantity and price of the product, as the change in the total welfare decreases the consumer surplus and producer surplus, and usually exceeds the tax revenue raised maximised as there is deadweight loss incurred in the process of taxation, causing the quantity of goods decrease

Good and Evil in Beowulf Essay -- Epic of Beowulf Essays

Good and Evil in Beowulf   Ã‚  Ã‚  Ã‚  Ã‚  In Beowulf, the conflict between good and evil is the poem's main and most important aspect. The poet makes it clear that good and evil do not exist as only opposites, but that both qualities are present in everyone. Beowulf represents the ability to do good, or to perform acts selflessly and in help of others. Goodness is also showed throughout this epic as having the ability to cleanse evil. Even though evil is presented by Grendel, Grendel's mother, and the dragon, who are filled with a desire to act against people and ultimately destroy them. Even pride, a human quality, is presented in Beowulf as a sign that evil exists.   Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Beowulf takes it upon himself to announce several great deeds that he will perform to help countries in need. One of these deeds is his offer to King Hrothgar, in which he proposes to slay Grendel. Beowulf states, "Single-handed I'll settle the strife!" In this statement, Beowulf is simply stating that he will kill this evil creature, Grendel. Another selfless act Beowulf states is that he will slay Grendel's mother. Beowulf declares, "And I give you pledge, She (Grendel's mother) shall not in safety escape to cover." Beowulf promises to see to it that Grendel's mother will be killed. After Beowulf becomes king in Geatland, he shows his great ability once more by pledging to kill the fire-dragon. "The ring-prince scorned to assault the dragon," the poet said. Beowulf is said to have pled...

Reflection Summary Essay

The previous week’s objectives covered PowerPoint in Microsoft Office, Presentation Tools, and System Development Life Cycle (SDLC). What could be applicable to your workplace or personal, and how your knowledge has increased as a result of what you experienced through the learning activities. We learned about presentation tools that are available in the marketplace and their advantages and disadvantages that they may have. Our team agreed that Microsoft Power Point is the most common and most used in the workplace and market place. We were all very familiar with how the system works, we all have worked with Power Point before. We were all very comfortable with Microsoft Power Point. There are many other presentation tools that can be used, and that are available but overall the most common is Microsoft Power Point. The next topic we had discussed was about what business go through to implement new technology. The second discussion question posted we learned was in regards to six stages of the systems development life cycle. The system development life cycle (SDLC) has six processes in which information system is process: systems investigation, system analysis, systems design, programming and testing, implementation, and operation and maintenance. These six processes are important for organizations to use when deciding on an information system; however, these processes are not only for organization, but also for personal use as well. When deciding whether to get a new operation system for a personal computer, you can have some of the same challenges. Consumers have to decide what kind of budget they have, what will the system do for them, and will the system last for a long time before having to get another system. We didn’t realize what business have to go through to implement new technology into the business plan. We learned that it can be a very long, in depth and costly process to implement a new system in the work place. In conclusion, we have learned many great things as a team about Microsoft power point, and presentation. How everyone uses power point for work and personal life. We also learned about System Development Life Cycle (SDLC). How the process can be long and expensive depending on the system  requirements. We agreed and disagreed on many things but in the end we were able to learn from one another. Working as team has made it better and easier to learn, we each collaborated on putting this reflection summary together. It has made it an even better learning experience working together as a team.

The Use of Symbolism in T.S. Eliots, The Love Song of J....

The Use of Symbolism in T.S. Eliots, The Love Song of J. Alfred Prufrock A well-written poem is built out of levels. Each level alludes to the next until the ultimate discovery of the poets message. The Love Song of J. Alfred Prufrock, by T. S. Eliot, provides a perfect example of a well-crafted poem comprised of sequential levels, also known as a framed story. At the level just below the very surface, the poem obscurely tells the story of a failed lobster prophet, resurrected from the dead to warn other lobsters of the cruel fate that awaits them in the event of their capture. In the course of the story, the lobster prophet falls prey to the harvest of a lobster catcher and is then sent to a restaurant as food. While in the tank†¦show more content†¦The persona also says that There will be a time to murder and create which refers to the murder of the lobsters to create a lobster dinner for the restaurant patrons (Eliot L. 28). On the next level the restaurants patrons can be equated with Eliots audience. Eliot expresses his feelings that each ne w poem he creates is another opportunity for the audience to murder his point like a lobster. The persona refers to the patrons again as the women [who] come and go / Talking of Michelangelo (Eliot LL. 12-14). This stanza reoccurs throughout the entire poem because it emphasizes important points on multiple levels. The women who come and go are talking of Michelangelo as idle dinner conversation. This stanza holds significance because, in addition to the personas fear of being eaten by these women, it also symbolizes a deeper intrinsic meaning for the poet himself at the next level. The lobster in the poem represents Eliots poetry, and this stanza reflects Eliots own fear of the people who make trivial conversation consuming his poetry and regurgitating it as meaningless banter while overlooking its true intrinsic meaning. Eliot probably felt that his audience had consumed his previous poetry without appreciation in the same way as the patrons consumed the lobster. The lobsters fear the ...human voices [that] wake us, and we drown,Show MoreRelatedThe Love Song of J. Alfred Prufrock Essay1524 Words   |  7 Pageshistorical context of a particular poem Poem: T. S. Eliot, ‘The Love Song of J. Alfred Prufrock The context of any given text whether poetry, novels or a movie is always integral to its understanding. Social and historical context of not only the given text, but the writer’s context and reader’s context play an important role in the interpretation and understanding of the major ideas, issues, values and beliefs within the text. T.S (Thomas Stearns) Eliot was one of the twentieth century’s majorRead MoreEssay T.S. Eliot and Modernism931 Words   |  4 Pagesthe socio-political events of the period. T.S Eliot was a pre-eminent figure in modernism publishing many important works of prose and poetry in his lifetime. â€Å"Eliot forged a style of aggressively fragmentary, urban poetry, full of indelicate, ‘unpoetic’ images and diction† (OXFORD BRITLIT) Eliot’s â€Å"The Love Song of J. Alfred Prufrock† is a poem that fully represents the ideas the modernists were attempting to convey. â€Å"The Love Song of J. Alfred Prufrock † stands as a poem especially reflective ofRead MoreT.S Eliot and Modernism1137 Words   |  5 Pagesthat are part of many modernist works. This meaning is hidden behind layers of complicated and elitist imagery and symbolism which force the reader to search for meaning in the poem as the poets search for meaning in their modern lives. The dramatic interior monologue that is common in modernist literature is also shared by TS Eliot, who through his poems â€Å"The Love Song of J Alfred Prufrock†,†Preludes† and â€Å"Rhapsody on a Windy Night† , communicates a pessimistic view on the dehumanising urban environmentRead MoreThe Love Song of J. Alfred Prufrock1729 Words   |  7 PagesThe Love Song of J. Alfred Prufrock The dramatic monologue â€Å"The Love Song of J. Alfred Prufrock was written by Thomas Stearns Eliot and published in June of 1915. Eliot was born in St Louis, Missouri on September 26, 1888, where he grew up and lived until the age of eighteen. After high school, Eliot studied at Harvard University in Cambridge, MA and the Sorbonne in Paris, France. Eventually, Eliot ended up in England where he married his wife Vivien and spent the remainder of his lifeRead MoreEliot s Influences On Literature1013 Words   |  5 PagesDouglass and T.S. Eliot’s Influences On Literature The nineteenth and twentieth century were pivotal times in the world of literature. Many new elements of writing and style were evolving and authors all over the world were finding ways to present what they felt most passionate about. Some writers opened their readers up to newer ideas by the means of, as Ezra Pound once stated, â€Å"making it new.† Two writers in particular who did a fantastic job of this were Frederick Douglass and T.S. Eliot. FrederickRead MoreAnalysis Of The Love Song Of J Alfred Prufrock1007 Words   |  5 PagesT.S Eliot’s depiction of the interrelation between time and decay conveys the transformative impact of industrialisation upon modern society. Modernity altered the human psyche into a detached, fragmentation of its previous form prior to the Modernist world. The Love Song of J. Alfred Prufrock and Preludes provide a poetic representation of how the corrosion of traditionalism preceded a sense of abandonment and isolation which infects in dividuals within the urban setting. Despite conveying earlyRead MoreThe Decay Of The Human Mentality837 Words   |  4 PagesIn his poems, Eliot uses psychology to explore the decay of the human mindset in both physical and metaphysical circumstances. Poetry is a form of expression that allows the writer to discuss harsh or tender political and philosophical topics and to vent frustration without directly offending the general public. Eliot’s poetry is exemplifies his belief that the modern person is vulnerable and fragmented, â€Å"the poetry of grapples with the apparent absence of meaning in modern life; it exposes the personalRead MoreEven Among The Giants Of Literature, Such As Arnold, Wordsworth,1181 Words   |  5 Pagesâ€Å"The Hollow Men† best represents the essence of T.S. Eliot’s writings because it depicts the technique and ideas common throughout his work. Eliot’s primary technique is the use of imagery, which is integral to his work as an artist. All of Eliot’s poems make use of vivid and shocking imagery and intense descriptions. In this portion of the poem, the reader is met with descriptions of deserts, stone idols, fading stars, and trembling lips. The use of images creates s desperate and somber tone, evokingRead MoreT.S. Eliots Writing Style and Use of Symbolism790 Words   |  4 Pagesâ€Å"Only those who will risk going too far can possibly find out how far one can go,† T.S. Eliot is basically trying to say that only people who push their limit can actually see how much they can really accomplish. T.S. Eliot made poetry that showed his negative views on life, people, and world. T.S. Eliot took poetry to another level by the way he writes and uses symbolism. Thomas Stearns was born on September 26, 1888. He was born in St. Louis, Missouri. His father was Henry ware Eliot who was theRead More`` Gold Glade `` And The Love Song Of J. Alfred Prufrock1811 Words   |  8 Pages Poetry, by its formal definition, describes intense literary work that expresses feelings and ideas by the use of distinctive style and rhythm. In poems such as â€Å"The Light Comes Brighter†, â€Å"Gold Glade†, and â€Å"The Love Song of J. Alfred Prufrock†, poets used certain literary devices--such as imagery, personification, symbolism, and rhyme scheme--in order to develop an abstract but simultaneous concrete idea of their internal thoughts and emotions. In â€Å"Gold Glade†, Robert Penn Warren portrayed a