Ib Economics Internal Assessment

A price ceiling is a government-levied maximum rate for a product or good. When a price ceiling inflicted by the government is more than retail equilibrium price, the price ceiling has no effect on the market or economy. This is because it does not obstruct supply, nor does it boost the demand. A different effect transpires if the government imposes a price ceiling below the market’s equilibrium rate. The suppliers will no longer be capable of charging the price that the market mandates, but they are required to meet the maximum price determined by the government’s price ceiling. When the demand rises beyond the capability to supply, shortages ensue. This leads to rationing of the product, causing some consumers to experience longer lines to obtain the product. In a worse case, there would be no products available for the consumer to buy.

There is a market trend of supply and demand in an economy and this is measured through the equilibrium process and the actors that affect supply and demand. The farmers are the market suppliers and hence they determine their produce by measuring the equilibrium market prices and quantities. The suppliers are aware that when the prices of commodity increases the demand of the same commodity decrease and when demand increases supply decreases until the market reaches an equilibrium point. There are various factors that affect

When A is MRS > Px /Py and when B is MRS < Px /Py. When it reaches A(B) the consumer is will probably be willing drop Y(X) in order to get more X(Y). The amount to drop is at the market.

“You’re gay,” a term now used so freely to not only insult peers but to take a stab at the homosexual community. But was this homosexual stigma always prevalent in history? Over two thousand years ago, the ancient Roman state ruled most of the known world. During those five hundred years, emperors rose to power and fell, a republic formed and was destroyed but what perhaps is one the most important aspects of Roman society is free love.

b.) There will be a shortage created. Initially the public might be happy about the price ceiling, but soon after the sellers will begin to ration the graham crackers based on other factors since the one most willing to pay will no longer be a factor. Also, this might cause consumers to stand in long lines in order to be able to purchase the graham crackers, but since there are not enough graham crackers supplied, not everyone will be able to purchase the graham crackers. In the end, producers will move on to produce other products that are more profitable than graham crackers, worsening the shortage.

In the short run both supply and demand of wheat exports will decrease which cause an increase of price. Since wheat will have a greater demand in the U.S. as a food staple. In the long run supply and demand decrease. To fulfill the demand in the U.S. needs for the staple.

This is shown as the price greatly increases and the quantity decreases slightly. It is also important to note that the Acai palm has strict conditions of where is can grow, and although the palm is ecologically sustainable the supply will not continually increase with the demand (Brondizio, 2011). This will cause further problems as the demand continues to grow, the low income families who need the berry as a staple food will be unable to afford acai.

Each farmer produces his or her own corn, harvests it and carries it to the market for sale. Hence there are infinitely many suppliers of corn. Since there are many corn sellers each selling a homogenous good, no single seller can charge a higher price. No seller can do so since there will be infinitely many other sellers who are willing to supply corn at a lower price. The market price for corn is determined by the equilibrium between market demand and supply for corn. The market demand curve

The supply curve will shift to the left because of a decrease in supply and the equilibrium price will be high.

How can PICO Agriculture increase the motivation of the employees by changing their managerial style?

Assuming that the demand and supply for premium coffees are in equilibrium, the price will be at a constant, without significant pressure from the market. If Starbucks introduced the world to premium blends, this would cause a positive shift in the demand curve. There a higher equilibrium price and higher quantity when demand increases and supply remain unchanged. As prices increase, and the market moves to a new equilibrium, we will see higher wages, more advances and investments in technology and infrastructure, and greater competition. As production become more efficient and competition becomes greater, supply will increase and cause prices to settle back down. There are several factors that will impact the long-term equilibrium, such as changes in supply. For example, if a hard freeze eliminated Brazil’s premium coffee crop, this would cause a negative shift in the supply curve. Assuming demand remains constant a negative shift in the supply curve will cause quantity to decrease and equilibrium price to increase. Research shows that in 2011 a frost occurred in Brazil's southeastern coffee growing belt. Traders worried that next year's yields could be hurt. At the same time, heavy rains during harvest forced Columbia to reduce its crop estimate for 2011. Understanding the impact of problems along the supply chain and how the changes in supply

According to Evenson the top three threats are, “increase in competition in the international market; the growing competition with other economic activities that increases the cost of production, especially the labor cost; and degradation of ecological conditions. Rice production around the world has become more competitive. This makes it harder for Thailand to keep its competitive advantage with its Jasmine rice. As for the modernization of the nation, it has lead to an increase cost of labor. This makes it more expensive for rice farmers that used to use cheap manual labor. Finally the massive amount of land used for the production of rice may have long term negative affects on the yields of the land. (Evenson)

Changes in the equilibrium price and quantity depend on exactly how the curves shift (Berkeley University, n.d.).

The effects of sea level rise are profound throughout the western coastal zone as it is low-lying and the coastal lands are subsiding (Karim and Mimura 2008) . Coastal wetlands such as salt marshes and mangroves will decrease in number unless they have a sufficient sediment supply to keep pace with Sea Level Rise. These physical impacts, in turn, have both direct and indirect socioeconomic implications, which appear to be immensely negative (Cazenave and Nicholls 2010).For example, based on national studies, a 1 m rise could cause losses of about 9.5 million tons of rice in Bangladesh (Mimura and Nicholls 2008). Rice is the staple crop of half of world’s population and it is the most major staple sustenance for Bangladesh. Sea level Rise will result in a food crisis in some regions of Bangladesh especially southern sub-regions as these areas are most vulnerable to flooding due to sea level rise; hence, rice production will be unsuitable (Karim 2014).

NatuRi consiguió ubicarse al sur de Tamil Nadu, donde podría implementar su proceso sobre el salvado o RBO crudo mientras que al mismo tiempo se ejercía un completo control sobre las materias primas necesarias para la producción del Rice – Active. De este modo, el producto terminado tendría la calidad buscada por la empresa y así, se podrían conseguir buenos resultados al momento de entrar al mercado y enfrentar a la competencia.