Principles of Micro Economics (Change in Supply and Demand) Research Paper

Principles of Micro Economics (Change in Supply and Demand) - Research Paper Example The law of demand states that there is an inverse relationship between the price of products and services and the quantity demanded in a given period, all other things being equal. In circumstances where the price of a product increases, the market responds by decreasing the demand. In contrast, when the price of a product decreases, it is expected that the market will respond with an increased demand. The market’s sensitivity to price is also known as price elasticity (Nelson 574). Supply on the other hand increases the number of its produced units when the price of goods and service increases. In contrast, supply will decrease when price decreases. It is expected as producers are driven by profit motive and they are motivated to produce more at a higher price to increase their profit and is not motivated to create when there is no incentive for profit. Corollary, producers will only supply goods and services at a price that is higher than their marginal costs (Maurya 2). For illustration, let us use the demand schedule below; Price Quantity Demanded 1 100 2 80 3 60 4 40 5 20 According to the demand schedule, for every $1 price increase, there is a corresponding decrease in demand of 20 units. The quantity demand will continue to slide by 20 units as the price increases by a dollar. Figure 1 shows how the quantity in demand decreases with every dollar increase of price. Figure 2 will illustrate the change in demand. The demand changes because the price also changed. The illustration in figure 2 shifted to the right because there is an increase in demand as more quantity is demanded at each price. Figure 1. Change in quantity demand. Figure 2. Change in demand Supply on the other hand increases as the price increases. It increases because it provides producers an incentive to profit at a higher price. In figure 4, it showed that as demand increases, supply also increases. Conversely, supply will also decrease when demand decreases as illustrated in figur e 5. Figure 4. Demand rises Figure 5. Demand falls Supply on the other hand tends to increase as price increase. As figure X will show, the corresponding increase in price is matched with a corresponding increase in supply. So how does the change in demand can affect supply? Demand is elastic and is sensitive to price. Supply on the other hand is motivated to produce more with a higher price. The elasticity of demand or its sensitivity to price affects supply by mitigating its production because higher demand that is a result of lower price does not provide much incentive for producers to supply more (Adler and Dumas 182). This contradicting nature of supply and demand (supply increases when price increases while demand increases only when price decreases) enables the price of a product and services to be established in the market. The price of a product or service is a point where the market is willing to pay certain goods and services at a price where the supplier is also willing to supply which is not at a loss to them (McCall 404-405). This is illustrated in figure 6 where supply and demand met. In the final analysis, demand determines the number of units that will be supplied in the market, thus affecting supply. Figure 6. Price established in the market On occasions that supplier will produce more than what is demanded, say for example in figure 5 where the prevailing market price for a

The topic is media ethical issues but it has to be by exploring the Essay

The topic is media ethical issues but it has to be by exploring the ethical issues involved by an example giving (see instructi - Essay Example This paper explores the ethical issues involved in the case study and highlights arguments for and against the parents’ request to the photographer’s wife to stop circulating the photograph of their deceased child in light of the teological and the deontological theory of ethics. Ethical Issues Involved In light of the teological theory of ethics Positive outcome Circulation of the photograph is creating awareness in the public regarding the negative ways in which the chemical industry is affecting the health and safety of children. As a result of this increased awareness, chemical industries face increased pressure both from the government agencies and the society at large to change its practices for the better so that they are environment friendly and not a threat to the health of the children. Therefore, the photographer’s wife should continue the circulation of the photograph. The farther it reaches, the more beneficial it gets. Negative outcome Circulation o f the photograph might be a cause of pain and suffering for the parents as it reminds them of their dead daughter. Therefore, it is unethical for the photographer’s wife to continue circulating the photograph. ... s Although the girl was affected by mercury pollution created by the chemical industry in Japan, yet the chemical industries of the whole world are suffering as a result of use of the photograph as an iconic image against the pollution created by the wrongful advancements of the chemical industries. Many chemical industries may be subject to criticism and scrutiny and undue investigation and accountability unnecessarily when they did not play a role in the child’s disease or death. This imparts the need for the photographer’s wife to ensure that the photograph is used for specific purposes only to indicate the effects of chemical pollution in Japan rather than letting the photograph go viral. However, since she has already failed in that and the geographical limitations have not been respected in this case, it is unethical for her not to control the circulation of the photograph since she is the one who holds copyright of the photograph. Arguments for the parents reques t Change of circumstances with time Argument supporting the parents’ request is that circumstances have changed since the time the photograph was taken. When the parents had signed the release of the photograph, the child was alive. They might have thought that release of the photograph would create awareness among the public about the adverse impact of the chemical industry’s environment unfriendly practices on the health and safety of children. However, since the child is now dead, it might be a very painful experience for the parents to be constantly reminded about their child, her death, or the cause of her death whenever they come across the photograph. Religious concerns of the parents Another argument in favor of the parents’ request is that they might have religious reasons for raising