Aspirin: Gasoline Vs. Electric Automobiles

According to the elasticity of demand law, a change in the quantity demanded leads to a change in price of the product. As such, if there were an increase in demand for pharmaceutical products, there would be an increase in the prices, while a decrease in these prices leads to a decrease in prices of pharmaceutical products. However, goods such as Geffen and Veblen do not obey the law of supply and demand, as

The relevance of demand and supply in economics cannot be overstated given that the two are considered some of economics' most fundamental concepts. In this text, I explain both the demand and supply for Anheuser-Busch's products. Further, I identify some of the substitute and/or complementary goods for Anheuser-Busch's products.

As stated in his article “Why the Gasoline Engine Isn’t Going Away Any Time Soon,” Joseph B. White believes that “an automotive revolution is coming -- but it’s traveling in the slow lane” (White 260). He goes on to state throughout his article that today’s reality is one that prevents this “revolution” from taking place in the way that Americans all hope for. He sites the current inability to design an engine that would run on an energy source other than gasoline or diesel but still have the same power that traditional engines have, as well as the cost of gasoline versus the cost of electricity, as some of the sources of our woes. Some companies do not want to move away from their old factories and workers whose union agreements make dismissing

Electric cars impose a serious risk on the oil and gas industry. The extent by which this market succeeds reciprocally defines the extent by which the oil and gas industry deteriorates. As with all forms of technology, there comes a point in time where one form of technology no longer appears to be useful in comparison with an applicable alternative. The current inhibitors of electric car adoption are the price of batteries and vehicle performance. With that being said, battery prices dropped over 30% just last year and are expected to continue dropping. Projections estimate that 35% of cars will have a plug by 20401. However, even in the next few years, companies such as Tesla, Chevrolet, and Nissan plan to offer electric cars on the market at an affordable price. The question then becomes: when the oil and gas market will be displaced by the electric market? If both markets produce a vehicle of similar price and quality, then it is reasonable to assume that a customer will choose the option that is more eco-friendly. The moral issue still remains: should the vehicles of tomorrow be fueled by gasoline or are viable options readily available and acceptable?

Increased supply without changes to the demand creates a surplus leading to a lower equilibrium price and decreased supply. Without changes to the demand, our cost structure would lead to a higher equilibrium price due to shortage.

In the pharmaceutical world, payers have switched to the generic brand over the brand-name drugs (The Commonwealth Fund, 2016). Although efforts to slow down the costs of healthcare might have work a little bit. A recent report shows spending has grew 5.7 percent in the past year (Altarum Institute, 2015).

There are many determinants that cause the change in demand of a product (Sayre & Morris, 2015). One example of determinants of change in demand is found in an article on Panera Bread. Taylor explains how Panera Bread competes with its competitors in her Business Insider article (2016). In Taylor’s article, examples of inferior products, substitute products and complementary products are given (2016). Bread is an inferior product, which means the demand of bread goes down with increased income (Morris & Sayre, 2015).

Gas car vs electric car Many people believe Electric cars are the new way to travel because they believe gas cars are obsolete. It is controversial because people agree that electric cars are better for the environment but they don’t believe that they are practical. People believe that electric vehicles are better for the environment than gas cars but they tend to stick to gas cars because of the hassle free refueling and maintenance. Gas cars pros Most people will agree that even with government rebates on electric vehicles, the cheapest gasoline powered economy cars are thousands of dollars more affordable.

Apple juice and orange juice are substitutes for consumers, so the fall in the price of apple juice decreases the demand for orange juice. The demand curve for orange juice shifts leftward. The increase in the wage rate paid to orange grove workers raises the cost of producing orange juice. The supply of orange juice decreases and the supply curve of orange juice shifts leftward. The net effect of these events decreases the equilibrium quantity but has an undetermined effect on equilibrium price. If supply decreases by more than the demand, the shift in the

The first factor is the availability of substitute goods, which are goods that can be utilized instead of the original good. If there is a substitute good available, the demand is likely to change more because people can buy different products. On the contrary, if an item has few substitute goods, it may not gain or lose customers. In Canada, Nike shoes have lots of substitute goods like Adidas

The market price of a good is determined by both the supply and demand for it. In the world today supply and demand is perhaps one of the most fundamental principles that exists for economics and the backbone of a market economy. Supply is represented by how much the market can offer. The quantity supplied refers to the amount of a certain good that producers are willing to supply for a certain demand price. What determines this interconnection is how much of a good or service is supplied to the market or otherwise known as the supply relationship or supply schedule which is graphically represented by the supply curve. In demand the schedule is depicted graphically as the demand curve which represents the

Environmental influences, such as diseases and illnesses form the need for pharmaceutical companies like Pfizer. Having such needs may help in strengthening the company. The constant demand for products that the company produces may increase their production rate, also their potential income. As mentioned in the theory of Supply and Demand, there is a relationship between the increase or decrease for a product and the increase and decrease for the supply of the certain good. It also includes the part played by the price.

When faced with a supply and demand issue we are faced with a product that is in demand but cannot be supplied or is limited to supply. As we see in the avocado scenario, the demand for avocados was skyrocketing however the supply was limited. Therefore, adjustments need to be made in order to maintain the current supply, or outsource for more. When this occurs the price of the product is bound to increase. The industry feels that price increase justifies what the value of the product is at the particular time. The higher the demand the higher the price. With supply and demand it proves that if people really want something they will pay for it regardless of the cost. Let me use the Samsung Galaxy S5 as an example: the phone has a retail value of $599.99, within a day of the phone being out, every store was sold out. Consumer’s had the demand for the phone and the supply was there. However, that same phone is a few months may only be

This is a perfect example of a change in demand; when the demand increases, at the same or even a higher price, more quantity is demanded. In the figure below, a shift to the right in the demand curve signifies an increase in demand.

In reducing the quantity of pseudoephedrine coming into New Zealand, Customs and the Police are reducing the potential production of P. in effect, officials are increasing the scarcity of P in NZ, although this may seem positive, it may encourage producers of P to increase quantity supplied. This is because the recently increased scarcity causes producers to reduce supply, causing a leftwards shift of the supply curve, hence the equilibrium price increases (as shown on diagram 1). This is due to the inelastic nature of price for demand of P, as well as the elastic nature of price for supply of P. It is this price elasticity for supply of P that results in the producers of P increasing quantity supplied by a greater proportion than the change in price. The perverse incentive for producers of P in this case would be increased equilibrium price, which, according to the law of supply and the supply price elasticity associated with P, would cause producers to increase supply.