Entrepenurship-6.What factors affect the development and Essay

Entrepenurship-6.What components influence the turn of events and usage of compelling methodologies in little businesses(SME) - Essay Example The endurance of SMEs inside the cutting edge advertise is a difficult errand: the expansion of rivalry all around has driven SMEs to change their procedures so as to satisfy the needs of the market. Regardless of the way that SMEs work locally (for example just inside a particular nation, with special case in the event of online action) they ought to constantly survey their key decisions so as to guarantee the viability of their arrangements as far as the market’s requests and the client inclinations. Current paper alludes to the variables that can influence the turn of events and the usage of viable methodologies in SMEs. There is no reference to explicit nation; rather a progression of information and discoveries related with SMEs that work the world over will be utilized in this examination. Potential recommendations will be additionally made under the terms that the vital rebuilding of a little firm is practical under the states of its market and its money related solidar ity to react to the requests of the important exertion. As effectively saw above private ventures have a predetermined number of representatives †that could be relied upon the significant administrative guidelines (in the model referenced over, the New Zealand, the quantity of workers of SMEs can't be higher than 5). In this unique situation, business in SMEs must be properly altered so as to satisfy the needs of the market yet in addition to react to the necessities of the firm. In SMEs their proprietor is generally effectively engaged with every single operational movement; he’s not only a boss of the representatives (despite the fact that this alternative would be likewise accessible). As per the abovementioned, business enterprise in SMEs should concentrate on the structure and the improvement of the proper procedures that would bolster the expansion of the firm’s efficiency towards the adjustment of the firm’s position in the market. On the off chance that the above objective is accomplished, the

Financial Accounting Enterprise Bargaining Agreements

Question: Talk about the Financial Accounting for Enterprise Bargaining Agreements. Answer: 1. With the present laws set up, depends on the gatherings who have advanced endeavor bartering understandings that are propose in nature between them or continue for a democratic example. With regards to Fair Work Australia, it assesses them for giving endorsement ahead. Based under the Fair Work Act of 2009, the understandings currently named as big business understandings, enrolled with Fair Work Australia to screen privileges as opposed to the cutting edge grant, and evaluated if the Act isn't break. With regards to Australian work law, the mechanical change that occurred in 2006, alluded as Work Choices. State modern enactment can assume a crucial job in endorsing understandings that are aggregate in nature, however the execution of the Work Choices change will forestall the occurrence of such an occasion (Alan, 2014). It should consider that the time from when the Fair Work Act was establish; parties that are identified with Australian understandings can move to Fair Work Australia for housing the consent to have endorsement. Before an individual from the council affirms a venture the necessity is that the workers those are utilized understanding setting will situated in a superior stage if the business is under a legitimate honor (Alan, 2014). A large number of those associated with research of corporate administration applies to Australia and tend to get enormous information that is exact in nature and relates to subject that are of intrigue. Notwithstanding, since the 1990s, there is centralization of investors that worries recorded market albeit a significant lump of the financial movement occurs outside the specialty of the market. (Dignam, 2014). Subsequently as demonstrated by the senior Accountant, the change in treating the costs is profoundly pertinent to the reason for keeping up morals and decency in the authoritative practice. In any case, the one-sided dependent on the need as referenced through position isn't the sole supporter of allocate the reminder for change however an aggregate change suits the hierarchical viewpoint as showed in the setting alluded to the Employee Bargaining Agreement yet forward by the senior administration and staff of the association. As dependent on the suggestions of the ASX Corporate Governance Council Principles and Recommendations, the announcement of corporate administration of elements that are Listed spotlight on their administration and foundation not as archive of consistence and yet should see chance to extend that the administration are tuned to convey the utility of having corporate administration courses of action that is powerful in nature with appropriate correspondence to holders of security and even relates to different organizations that reveals network venture and depicts the methodology as far as corporate admini stration and activity. 2. Establishing strong frameworks for the executives and oversight, it is obvious that the associations can change and speak to their business activities and practices similarly as with the need of the business. A recorded element in any market should structure and uncover the concerned jobs, just as duties of its activity to convey practical benefits for an association. Thus, conveying an increasingly precise and responsive method of recording the progression of cash all through the association is supported under the setting of giving more straightforwardness in the business activities and furthermore empowering the records that could be progressively checked, since there are generous quantities of the retailers that have gone into radical and long haul concurrence with the association (Leo, 2007). Likewise with the consistence of the corporate laws set up, the individuals, and the comprehensive staff of the association has the total mindfully to establish the comprehensive business procedure of an association with the assent of the other party engaged with the particulars of the business. In any case, getting the predisposition dependent on the net deals of the records for the association doesn't totally think about the real observing needs of the business that might be reliant on the auxiliary qualities, for example, Geographical viewpoints, and other market impacts (Yoshiro et. al, 2006). Notwithstanding, since the association has conceded to building a class of changes dependent on the Net deals, the corporate demonstration has a total reference to concurring with the terms and conditions that structure the interior procedure of the association (Maines Wahlen, 2006). 3. Taking protections law and practice as it put to contention that the change is impact by monetary advancement, fracture of political and the features of development of legitimate administrations and impacts (Muchlinski, 1999). Imprint Ramseyer, a teacher of Harvard had organized a solid distinctive contention when he alluded that the Japanese law, just as economy has consistently been Americanized. With the features to his view, instead of a comprehensive corporate administration framework that is portray by one of a kind banks, just as mechanical approach that has been coasted by the administration, (Dharmapala Hines, 2009). The model consequently uncovers that there is a fundamental job for the connection that exists among investor and administrator connections that has been long natural in liberal nations like the US (Miwa and Ramseyer 2006). Nonetheless, being in Australia, the laws will in general be increasingly refined and acclimated with conveying a high consistency in cor porate administration. The nation of Australia is limited by universal commitments and has charge arrangements with in excess of 40 nations around the world. Expense settlements are frequently alluded shows of assessment or twofold duty understandings (Muchlinski, 1999). They don't permit twofold tax assessment and avoidance of financial and prompts collaboration between Australia, just as other duty specialists of worldwide height by implementation of the legitimate expense laws. The assessment settlement can influence just an inhabitant of Australia or the other bargain nation (Koffman MacDonald, 2007). Similar represents household exchange and business, subsequently keeping off a bookkeeper in the vision of decrease of assessments could just bring about more inconveniences, however making do with a solitary worker as alluded by the associations is by all accounts increasingly proper term as formed with the exhibition of the business (Moffett et. al, 2011). Removing a bookkeeper is in finished understand ing with the corporate law that permits total access to the association, which additionally includes absolute obligation to hold representatives likewise with the need of the association. References Alan D, 2014, Company Law, Oxford University Press. Dharmapala, D. Hines, J 2009, Which nations become assessment shelters?, Journal of Public Economics, vol. 93, no. 2, pp. 10581068 Koffman L MacDonald E 2007, The Law of Contract, Oxford University Press. Leo, K.J 2011, Company Accounting, Boston:McGraw Hill Maines, L. Wahlen, J 2006, The Nature of Accounting Information Reliability: Inferences from Archival and Experimental Research, Accounting Horizons, vol. 20, no.4, pp. 389-425. Moffett, M. Stonehill, A. also, Eiteman, D 2011, Fundamentals of Multinational Finance, Cambridge USA Muchlinski, P 1999, Multinational Enterprises and the Law, Cambridge USA. Yoshiro M, Ramseyer, J. Imprint 2006, Japanese mechanical money at the end of the nineteenth century: Trade credit and budgetary intermediation, Science Direct

Introducing the Class of 2013 Trevor 13

Introducing the Class of 2013 Trevor 13 Continuing our series Introducing the Class of 2013: Trevor 13 Chandler 13 and Taylor 13 Jonte 13 Sean 13 Terence 13 Christy 13 Franklin High regular guy bound for MIT by Betsy Hammond, The Oregonian Monday June 08, 2009, 8:53 PM Bruce Ely/The Oregonian: Franklin High valedictorian Trevor Zinser reacts as an impromptu tower of paper cups collapses during a class barbecue to celebrate the success of their woodworking venture, which he helped direct. Zinser likes to work in the wood shop, lift weights, play football and help his dad with construction. But hes brainy, too, with a penchant for chess and crossword puzzles. Hes headed to MIT with scholarships that pay nearly the total $50,000 cost of freshman year. Portland high school senior Trevor Zinser has long excelled where muscle matters: playing football, heaving a shot put, framing a house, lifting weights. A working-class kid raised just off Foster Road in Southeast Portland, the 6-foot-2, 240-pound teen is a leader in the school wood shop, set a school record lifting 600 pounds in the squats and counts his football coach as the teacher who knows him best. But Zinser also quietly stacked up an academic record prompting Harvard, Stanford and MIT to court him for his brains. Few local graduates in the class of 2009 were as sought after by top colleges a remarkable achievement for any teen, and particularly one who will be the first in his family to attend college full time. Zinser will graduate tonight having aced every college-level Advanced Placement course Franklin High offered, from physics and calculus to English and psychology 10 in all. His straight-A record made him one of six Franklin valedictorians. But his performance on AP tests and the college-entrance ACT exam put him in the stratosphere, above the 99th percentile, among college-going students nationally. The MIT-bound teen insists he is a regular guy and not naturally intelligent. He wears inexpensive jeans and tank T-shirts that show his strapping arms and shoulders. He says he hates doing homework and calls himself one of the worst procrastinators in the world. Money has always been tight at home, especially after his parents each got laid off in recent years. Dad Scott Zinser is now a home remodeler, and as a result, his son knows his way around roof trusses, glue-lam beams, 10/12 pitch and compound angles places where math meets the real world. Still, Trevor Zinser says he was unsure he could get into MIT, and was floored when the university flew him to Boston to sway him to choose MIT over Harvard or Stanford. He says a scholarly turning point came when he got As in his AP classes as a sophomore but scored only 3s on the national exams decent results, but not great, on the tests five-point scale. His take-away: Dont be a grade-grubber; work to maximize deep understanding. Ever since, I focus on trying to retain the material and really learn it, he says, not so much on getting an A. His mother, Kami, says his academic drive and talent surfaced early. As a 2-year-old, he potty-trained himself in a week when she told him that was a prerequisite for going to elementary school. At 3, he made a game of adding the numerals he saw on houses 349 S.E. Main Street was a 16, for instance. At Woodstock Elementary, his second-grade teacher let him take math with fifth-graders. His third-grade teacher steered him toward Winterhaven, a math and science magnet, for middle school. At Franklin High, Zinser took physics, chemistry and junior-level math his freshman year, then opted for four college-level classes as a sophomore. He says exceptional teachers, particularly science teacher Dave Sherden, worked hard to make classes deep and engaging. Zinser took weight training or another PE class every year, too. I enjoy it, he says. It gives me a place to release a lot of aggressive energy. Two pivotal summer experiences an engineering camp at New Mexico Tech and a trip to see sustainable agriculture in Thailand helped him figure out what he wants to do with his life. The camp convinced him that chemical engineering is the field for him. Chemical engineers get to draw on math and science to test the limits of speed, temperature and other boundaries. Launching projectiles, blowing things up and propelling vehicles to top speed all feats of engineering he tried at camp were very much his style. Studying global economics and witnessing extreme poverty in Thailand helped cement his desire to help low-income people by working to develop affordable renewable energy. The biggest problem with renewable energy systems right now is that efficiencies are low, Zinser says. Im one of those people who enjoys puzzles, and figuring out how to improve renewable energy is one of the ultimate puzzles. Trevor Zinser High school: Straight As, including in every Advanced Placement class Franklin High offers. Took seven AP exams junior year, earning top scores in biology, statistics, English. College: Accepted by Harvard, Stanford, MIT and others. Will attend MIT on $47,000 in scholarships.* Family: Parents Scott and Kami Zinser; sister, Gabryelle; brother, Krys. Likes to: Lift weights, play chess, hike, camp, play football, square-dance, procrastinate, hang out with people older than he is. Doesnt like to: Lose. Tough side: First-team all-league offensive lineman. Former heavyweight wrestler. Third at districts in the shot put. School record for weightlifting in squats: 600 pounds. Tender side: Found and raised an abandoned kitten. Career plans: Wants to be a chemical engineer working to make breakthroughs in renewable energy. Wants to: Get a good-paying job so he can afford to do the really cool things such as sky diving, bungee jumping and owning a motor boat.

The Setting for Thomas Hardys The Withered Arm and Other...

The Setting for Thomas Hardys The Withered Arm and Other Wessex Tales In the following essay I seek to show evidence of how Thomas Hardy was acutely aware of the social status of people, how village and town life was conducted, how men and women reacted to their own sex and to each other and the part religion played in peoples daily lives. Social class is raised a lot in Hardys pieces. Even though these stories were all written at a different time and then put together, you can see it is a strong theme in the book. In the Withered Arm, there is instantly a strong sense of upper and lower class. You learn of a milkmaid named, Rhoda Brook, and hear of her story among gossipers at the farm. She†¦show more content†¦This also shows that Mr. Twycott really cares for Sophy, as marrying someone from a lower class is like, Social suicide. Sophy and Mr. Twycott move to London where people would not know of their sin, Mr. Twycott dies, leaving Sophy a large sum of money, a son and in a higher class. London is described as a snobbish place and the people living there do not get on with Sophy because of the way she speaks, à ¢Ã¢â€š ¬Ã‚ ¦but she still held confused ideas on the use of was and were, which did not beget a respect for her among the few acquaintances she made. This shows the city folk to be of a higher class compared to the lower class country folk, and how they are snobbish and vain. In country life it does not matter the way you speak, but who you are inside. A big comparison has been made in this story between men and women. Even though Sophy was older and the one to inherit her husbands belongings, the son takes charge, She was left no control over anything that had been her husbands beyond her modest personal income. Her own child would soon take over being the man of the house, The completion of the boys course at the public school, to be followed in due time by Oxford and ordination, has been all provisioned and arranged. This shows that in these times a womans job was none atShow MoreRelated Women play victims in Thomas Hardy’s short stories, roles that were1788 Words   |  8 PagesWomen play victims in Thomas Hardy’s short stories, roles that were typical of Victorian women in general â€Å"Women play victims in Thomas Hardy’s short stories, roles that were typical of Victorian women in general† Discuss with references at least three of Hardy’s short stories Thomas Hardy in his short stories â€Å"The Withered Arm†, â€Å"Tony Kytes, the Arch Deceiver† and the Winters and the Palmleys† presents his readers with a series of unsettling visions of the relations between men and Read More An Essay on The Withered Arm, by Thomas Hardy2241 Words   |  9 PagesThe Withered Arm, by Thomas Hardy ‘The past is a foreign country. They did things differently there.’ ‘The Go Between’ by L.P. Hartley. Thomas Hardy, a Victorian novelist, based his stories on experience of growing up in rural Dorset. Growing up there, he became familiar with the language, customs, practises and stories of the country folk. These stories draw up on his experiences enabling him to write ‘Wessex Tales’. Among many pieces of work is ‘The Withered Arm’. ‘The Withered Arm’

Sir Gawain and the Green Knight the Exploration of a...

Tragic and hero may not be words that easily reveal a relationship, but throughout literature the two have been linked to create an enthralling read. The emergence of the tragic hero seemed to take shape in ancient Greece where such works as Oedipus and Antigone were popular among all classes of people. Aristotle defined a tragedy as the imitation of an action that is serious and also, as having magnitude, complete in itself. It incorporates incidents arousing pity and fear, wherewith to accomplish the catharsis of such emotions. Though Greece may be credited with the creation of tragic heroes, the theme is seen in literary works across many different cultures, including England. Sir Gawain and the Green Knight is one such English work†¦show more content†¦In England during the medieval times, knights belonged to the noble class. They were viewed with respect and embodied many of the characteristics commoners held in lofty height such as faith, patience, honor, purity, and s elf sacrifice. In Gawains case he was not only a knight but the nephew of the Great King Arthur. Our story begins at King Arthurs court in Camelot at Christmastime. The lords and ladies of Camelot join Arthur and Guinevere in celebration through an enormous feast. The joyous occasion is interrupted when the imposing Green Knight rides straight into the court on his enormous steed. He challenges the court to play a game in which someone will strike him with his own axe, on the understanding that he gets to return the blow in exactly a year and a day. The court is shocked into silence as the Green Knight begins to goad them, referring to them as nothing more than bearded children. As Arthur prepares to accept the challenge, it is Gawain who rises and begs to be allowed to accept the trial himself. This crucial juncture, secures Gawains responsibility for his own fate. He must face this quest by his lonesome. The outcome is essentially up to him; his choices alone will reveal his futur e. As Gawain embarks on his journey, it may at first seem difficult to find him flawed; after all, he encounters and defeats beasts, as well as the elements itself. It is not till Gawain

Supply and Demand Free Essays

In economics supply and demand refers to the relationship between the accessibility of a good or service and the need or wish for it amid buyers (Microsoft, 2009). Our daily lives are affected by supply and demand. Demand is based on the price of a product, the price of related products, and customer’s salary and preference. We will write a custom essay sample on Supply and Demand or any similar topic only for you Order Now Supply can rest not only on the price available for the product but also on the cost of similar products, the method of how it is made, and the availability and price of contributions. In this specific case I will explain how supply and demand has affected my decision to purchase a home (The Free Dictionary, n. d. ). Factors that Could Cause Changes in Supply and Demand I am the Compliance and Closing Manager for a secondary market mortgage company. Over the past thirteen years I have worked in every area of mortgage lending, through the good and bad times. I have seen the effects that cause the changes in supply and demand when purchasing a home. One factor that can affect supply and demand when purchasing a home are is interest rates. Higher interest rates can lead to less people making the decision to purchase a home because of high mortgage payments. The effect of higher interest rates can cause the supply to increase as homes sit on the market longer. When a home sits on the market for a prolonged period of time, the price can be affected. If the supply is high and the demand is low, for one home to be sold over another, price is also a factor that can increase demand. Homes with lower sales prices affect affordability. The lower priced a home is, the more reasonable it is to a would-be buyer. Another factor that can affect supply and demand is condition of the home. A home in poor condition is not usually in high demand, but for an investor looking to rehab a home condition may not be a factor. Substitutes for Buying a Home There are several options or substitutes for buying a home. One substitute in lieu of purchasing a home would be to buy a condo. Condos are typically less expensive, have less maintenance since a condo fee is paid for those issues, and are smaller to operate than a home. Qualifying for a mortgage loan on a condo may be the difference to a potential home owner if they buy a condo over a home. Another substitute would be to rent a house or an apartment. Renting cuts back on maintenance expenses and can allow one to save additional funds towards putting a larger down payment in order to lower the monthly payment. Both are good options to purchasing a home, and a place to live. After my divorce I had to make the decision whether or not I wanted to buy a home or rent. After looking at the housing market, looking at price, monthly expenses, and the upkeep of buying a home, I decided to rent for a while longer. I substituted my desire to be a homeowner with renting someone else’s based on financial and personal reasons. Complements for Buying a Home A complement is the demand for one product that automatically increases the demand for another. When buying a home one item that a new homeowner may use as a complement may be new carpet, or flooring. When a buyer purchases a home it rarely comes exactly as the homeowner likes as far as taste and decor. New carpet or wood flooring is a great way to complement a home purchase. Carpet and flooring wears out over time and will need to replaced depending on how old the home is. Another complement is appliances such as a new stove/oven combination. Most home purchases include the appliances; however, depending on the age of the home often the appliances are in working order but may be aged. New appliances are a good way to add value to a home as well as create better functionality. Homeownership and the Impact on Price Elasticity History and time has shown that the need for homes will always exist. During times when the economy is booming, the demand for homes will shift to the right because the consumer confidence has increased. Our business experienced this in 2006 when interest rates were at an all-time low, lenders made loans available to most anyone who could qualify, and real estate was moving quicker than homes could be built. Mortgage companies could not process and close loans quick enough; at times builders could not keep up with the demand of customers. Then in late 2009, business slowed quickly when big companies began having trouble staying solvent because of the foreclosure and bankruptcies once those buyers were unable to pay for the homes they purchased during the boom. When the economy took a downturn, the demand for homes shifted to the left because the need was less, consumer confidence faded, and availability of mortgage loan products decreased. Conclusion Unemployment is up, inflation is up, and the housing market continues to stall. The government has bailed out banks, given first-time homebuyer incentives, and lowered taxes, yet home purchases continue to drop. With high inflation, despite steady interest rates, there are many factors to take into account when choosing to buy a home. My concern is job stability and what is best for me in the long run. At this time I have decided it is best for me to continue to rent until the economy stabilizes and I save a larger down payment. How to cite Supply and Demand, Papers Supply and Demand Free Essays Automotive Industry Supply and Demand Katharyn E. Moore Supply and Demand The automobile industry has certainly have seen fluctuations in supply and demand, especially in the last decade. The economic turmoil of the United States has only been one factor in supply and demand of vehicles. We will write a custom essay sample on Supply and Demand or any similar topic only for you Order Now This is evident with employment and income of consumers, interest rates, gas prices and the consumers need for more efficient cars. The demand for more fuel-efficient transportation increases as gas prices rise and the supply for fuel-efficient cars also rises. Manufacturers will increase the supply of fuel-efficient cars to meet the demand. If the prices of these cars are more than what the consumer is willing to pay, the demand will decrease and inventory of these cars will increase. A decrease in price of the fuel-efficient care will cause the demand to increase and the manufacturer to increase supply at the price the consumer is willing to pay. Equilibrium is the supply and demand of fuel-efficient cars will meet at a price that the consumer is willing to pay and the price the manufacture will charge for the car (Colander, 2011). The resources needed for the industry whether it is employees, raw materials, financial and technology affect supply and demand in the automotive industry. These resources are needed to facilitate the making of vehicles and their supply either abundant or scarce will affect the industry. The unavailability of steel in manufacturing of fabricated metal product decreases the ability to supply the framework for a vehicle will decrease (Gross output by Industry, 2010). The manufacturer will have to decrease the supply. The limited availability will increase prices of metal and decreases demand for the product at a higher price. If the demand for cars is high, the manufacturer will have to pay the higher cost and forward that increase on to the consumer increasing the price of the car. The consumer may not want the higher cost car and demand for the car will decrease a factor in moving the supply and demand curves of cars. Alternatives in the automobile industry are ongoing as manufacturers are introducing more fuel-efficient cars as well as biofuel (e85) and electric cars. New technology and consumer preference of these alternatives will affect the supply and demand of vehicles. Consumer preference to a more ecological friendly vehicle increases demand and encourages supply increases from the manufacturer. Consumers have the opportunity to help the environment and decrease the usage for gas when renting a vehicle. Enterprise has added electric cars to their rental fleet along with hybrids and fuel-efficient vehicles (Finance News, 2011). The shift in demand for these vehicles will change the demand curve of alternative vehicles. Consumers are the important factor in supply and demand in the automobile industry. Our decisions of a fuel-efficient vehicle and the price we are willing to pay for these vehicles influence the supply and demand. We have choices as consumers, and these choices influence competition, pricing, and demand of vehicles available for purchase. The supplier will act accordingly to these demands and make available the supply of product the consumer wants. The demand for vehicles is dependent on pricing, new technology, fuel efficiency, alternative fuels and competition (Colander, 2011). These decisions will increase or decrease the supply and demand curves with these choices. With all of these and other factors the supply and demand curve will increase and decrease as the market changes with these influences. Supply and demand will always be changing as we choose to purchase products and services that we need for our psychological and physiological needs. References Colander (2011). Introduction into Macroeconomics. Macroeconomics (7th Ed. ), Chapter Four, United States: McGraw-Hill-Create. Finance News. (2011, October 27). Enterprise Rent-a-Car expands electric vehicle fleet. Retrieved October 30, 2011, from Yahoo. com website: http://finance. yahoo. com Gross output by Industry. (2010, December 14). Retrieved October 28, 2011, from Bureau of Economic Analysis website: http://www. bea. gov U. S. International Trade in goods and services. (2011, October 13). Retrieved October 28, 2011, from U. S. Census Bureau – Economic Analysis News website: http://www. bea. gov How to cite Supply and Demand, Papers Supply and Demand Free Essays chapter: 3 Supply and Demand Krugman/Wells Economics  ©2009 ? Worth Publishers WHAT YOU WILL LEARN IN THIS CHAPTER ? ? ? ? ? What a competitive market is and how it is described by the supply and demand model What the demand curve and supply curve are The difference between movements along a curve and shifts of a curve How the supply and demand curves determine a market’s equilibrium price and equilibrium quantity In the case of a shortage or surplus, how price moves the market back to equilibrium 2 of 42 Supply and Demand ? A competitive market: ? ? Many buyers and sellers Same good or service ? ? The supply and demand model is a model of how a competitive market works. Five key elements: ? ? ? ? ? Demand curve Supply curve Demand and supply curve shifts Market equilibrium Changes in the market equilibrium 3 of 42 Demand Schedule ? A demand schedule shows how much of a good or service consumers will want to buy at different prices. Demand Schedule for Coffee Beans Price of coffee beans (per pound) Quantity of coffee beans demanded (billions of pounds) $2. We will write a custom essay sample on Supply and Demand or any similar topic only for you Order Now 00 1. 75 7. 1 7. 5 1. 50 1. 25 1. 00 0. 75 0. 50 8. 1 8. 9 10. 0 11. 5 14. 2 of 42 Demand Curve Price of coffee bean (per gallon) $2. 00 1. 75 1. 50 1. 25 1. 00 0. 75 0. 50 A demand curve is the graphical representation of the demand schedule; it shows how much of a good or service consumers want to buy at any given price. As price rises, the quantity demanded falls Demand curve, D 0 7 9 11 13 15 17 Quantity of coffee beans (billions of pounds) 5 of 42 GLOBAL COMPARISON Pay More, Pump Less†¦ ? Price of gasoline (per gallon) Germany Because of high taxes, gasoline and diesel fuel are more than twice as expensive in most European countries as in the United States. According to the law of demand, Europeans should buy less gasoline than Americans, and they do: Europeans consume less than half as much fuel as Americans, mainly because they drive smaller cars with better mileage. $8 7 6 United Kingdom Italy France Spain ? 5 4 3 Japan Canada United States 0. 2 0. 6 1. 0 1. 4 0 Consumption of gasoline (gallons per day per capita) 6 of 42 An Increase in Demand ? ? An increase in the population and other factors generate an increase in demand – a rise in the quantity demanded at any given price. This is represented by the two demand schedules – one showing demand in 2002, before the rise in population, the other showing demand in 2006, after the rise in population. Demand Schedules for Coffee Beans Quantity of coffee beans demanded (billions of pounds) Price of coffee beans (per pound) in 2002 in 2006 $2. 00 1. 75 1. 50 1. 25 1. 00 0. 75 0. 50 7. 1 7. 5 8. 1 8. 9 10. 0 11. 5 14. 2 8. 5 9. 0 9. 7 10. 7 12. 0 13. 8 17. 0 7 of 42 An Increase in Demand Price of coffee beans (per gallon) $2. 00 Increase in population ? more coffee drinkers 1. 75 1. 50 1. 25 1. 00 0. 75 0. 50 0 Demand curve in 2006 Demand curve in 2002 7 9 11 13 D 1 D 17 2 15 Quantity of coffee beans (billions of pounds) A shift of the demand curve is a change in the quantity demanded at any given price, represented by the change of the original demand curve to a new position, denoted by a new demand curve. 8 of 42 Movement Along the Demand Curve Price of coffee beans (per gallon) $2. 00 1. 75 1. 50 1. 25 A C †¦ is not the same thing as a movement along the demand curve B A shift of the demand curve†¦ A movement along the demand curve is a change in the quantity demanded of a good that is the result of a change in that good’s price. 1. 00 0. 75 . 50 D 7 8. 1 9. 7 10 13 1 D 17 2 0 15 Quantity of coffee beans (billions of pounds) 9 of 42 Shifts of the Demand Curve Price Increase in demand An â€Å"increase in demand† A â€Å"decrease in demand†, means a leftward shift of rightward shift of the demand curve: at any given price, consumers demand a smaller quantity larger quantity than before. (D1? D3) (D1? D2) Decrease in demand D 3 D 1 D 2 Quantity 10 of 42 What Causes a Demand Curve to Shift? ? Changes in the Prices of Related Goods ? Substitutes: Two goods are substitutes if a fall in the price of one of the goods makes consumers less willing to buy the other good. Complements: Two goods are complements if a fall in the price of one good makes people more willing to buy the other good. ? 11 of 42 What Causes a Demand Curve to Shift? ? Changes in Income ? ? Normal Goods: When a rise in income increases the demand for a good – the normal case – we say that the good is a normal good. Inferior Goods: When a rise in income decreases the demand for a good, it is an inferior good. ? ? Changes in Tastes Changes in Expectations 12 of 42 Individual Demand Curve and the Market Demand Curve The market demand curve is the horizontal sum of the individual demand curves of all consumers in that market. (a) (b) (c) Darla’s Individual Demand Curve Price of coffee beans (per pound) Price of coffee beans (per pound) Dino’s Individual Demand Curve Price of coffee beans (per pound) Market Demand Curve $2 $2 $2 DMarket 1 1 1 DDarla DDino 0 20 30 Quantity of coffee beans (pounds) 0 10 20 Quantity of coffee beans (pounds) 0 30 40 50 Quantity of coffee beans (pounds) 13 of 42 Supply Schedule ? A supply schedule shows how much of a good or service would be supplied at different prices. Supply Schedule for Coffee Beans Price of coffee beans (per pound) Quantity of coffee beans supplied (billions of pounds) $2. 00 1. 75 1. 50 1. 25 1. 00 0. 75 0. 50 11. 6 11. 5 11. 2 10. 7 10. 0 9. 1 8. 0 14 of 42 Supply Curve Price of coffee beans (per pound) Supply curve, S $2. 00 1. 75 1. 50 1. 25 1. 00 0. 75 0. 50 0 7 9 11 13 A supply curve shows graphically how much of a good or service people are willing to sell at any given price. As price rises, the quantity supplied rises. 15 17 Quantity of coffee beans (billions of pounds) 15 of 42 An Increase in Supply ? ? The entry of Vietnam Supply Schedule for Coffee Beans into the coffee bean Quantity of beans supplied Price of business generated coffee beans (billions of pounds) an increase in (per pound) Before entry After entry supply—a rise in the quantity supplied at $2. 00 11. 6 13. 9 any given price. 1. 75 11. 5 13. 8 This event is 1. 50 11. 2 13. 4 represented by the 1. 25 10. 7 12. 8 two supply schedules—one 1. 00 10. 0 12. 0 showing supply before 0. 75 9. 1 10. 9 Vietnam’s entry, the 0. 50 8. 0 9. 6 other showing supply after Vietnam came in. 16 of 42 An Increase in Supply Price of coffee beans (per pound) S $2. 0 1 S 2 Vietnam enters coffee bean business ? more coffee producers 1. 75 1. 50 1. 25 1. 00 0. 75 0. 50 0 7 A movement along the supply curve†¦ †¦ is not the same thing as a shift of the supply curve 9 11 13 15 17 Quantity of coffee beans (billions of pounds) A shift of the supply curve is a change in the quantity supplied of a good at any given pric e. 17 of 42 Movement Along the Supply Curve Price of coffee beans (per pound) $2. 00 1. 75 1. 50 1. 25 1. 00 0. 75 0. 50 0 7 10 11. 2 12 A C †¦ is not the same thing as a shift of the supply curve 15 17 A movement along the supply curve†¦ S 1 S 2 B Quantity of coffee beans (billions of pounds) A movement along the supply curve is a change in the quantity supplied of a good that is the result of a change in that good’s price. 18 of 42 Shifts of the Supply Curve Price S 3 S 1 S 2 Increase in supply Any â€Å"increase in â€Å"decrease in supply† means a leftward shift of the rightward shift of the supply curve: at any given price, there is an a decrease in the increase in the quantity supplied. (S1? S2) S3) Decrease in supply Quantity 19 of 42 What Causes a Supply Curve to Shift? ? ? ? ? ? Changes in input prices ? An input is a good that is used to produce another good. Changes in the prices of related goods and services Changes in technology Changes in expectations Changes in the number of producers 20 of 42 Individual Supply Curve and the Market Supply Curve The market supply curve is the horizontal sum of the individual supply curves of all firms in that market. (a) Price of coffee beans (per pound) (b) Price of coffee beans (per pound) (c) Market Supply Curve Price of coffee beans (per pound) Mr. Figueroa’s Individual Supply Curve SFigueroa Mr. Bien Pho’s Individual Supply Curve S Pho Bien $2 $2 $2 S Market 1 1 1 0 1 2 3 0 1 2 Quantity of coffee beans (pounds) 0 1 2 3 4 5 Quantity of coffee beans (pounds) Quantity of coffee beans (pounds) 21 of 42 Supply, Demand and Equilibrium ? Equilibrium in a competitive market: when the quantity demanded of a good equals the quantity supplied of that good. The price at which this takes place is the equilibrium price (a. k. a. market-clearing price): ? ? Every buyer finds a seller and vice versa. The quantity of the good bought and sold at that price is the equilibrium quantity. ? 22 of 42 Market Equilibrium Price of coffee beans (per pound) Supply 2. 00 1. 75 1. 50 1. 25 Market equilibrium occurs at point E, where the supply curve and the demand curve intersect. Equilibrium price 1. 00 0. 75 E Equilibrium 0. 50 0 7 10 Equilibrium quantity 13 Demand 15 17 Quantity of coffee beans (billions of pounds) 23 of 42 Surplus Price of coffee beans (per pound) Supply $2. 00 1. 75 Surplus 1. 50 1. 25 1. 00 0. 75 E There is a surplus of a good when the quantity supplied exceeds the quantity demanded. Surpluses occur when the price is above its equilibrium level. 0. 50 0 7 8. 1 10 11. 2 13 Demand 15 17 Quantity of coffee beans (billions of pounds) Quantity demanded Quantity supplied 24 of 42 Shortage Price of coffee beans (per pound) $2. 00 1. 75 Supply 1. 50 1. 25 There is a shortage of a good when the quantity demanded exceeds the quantity supplied. Shortages occur when the price is below its equilibrium level. 1. 00 0. 75 E 0. 50 0 7 9. 1 Shortage Demand 13 15 17 Quantity of coffee beans (billions of pounds) 10 11. 5 Quantity supplied Quantity demanded 25 of 42 ECONOMICS IN ACTION The Price of Admission: †¢ Compare the box office price for a recent Justin Timberlake concert in Miami, Florida, to the StubHub. com price for seats in the same location: $88. 0 versus $155. †¢ Why is there such a big difference in prices? For major events, buying tickets from the box office means waiting in very long lines. Ticket buyers who use Internet resellers have decided that the opportunity cost of their time is too high to spend waiting in line. For those major events with online box offices selling tickets at face value, ticke ts often sell out within minutes. †¢ In this case, some people who want to go to the concert badly but have missed out on the opportunity to buy cheaper tickets from the online box office are willing to pay the higher Internet reseller price. 6 of 42 Equilibrium and Shifts of the Demand Curve Price of coffee beans An increase in demand†¦ Supply E P 2 2 Price rises E P 1 1 †¦ leads to a movement along the supply curve due to a higher equilibrium price and higher equilibrium quantity D 2 D 1 Q 1 Q 2 Quantity of coffee beans Quantity rises 27 of 42 Equilibrium and Shifts of the Supply Curve Price of coffee beans S 2 S 1 A decrease in supply†¦ P Price rises E 2 2 †¦ leads to a movement along the demand curve due to a higher equilibrium price and lower equilibrium quantity P 1 E1 Demand Q 2 Q 1 Quantity of coffee beans Quantity falls 28 of 42 Technology Shifts of the Supply Curve Price An increase in supply †¦ S1 S2 †¦ leads to a movement along the demand curve to a lower equilibrium price and higher equilibrium quantity. E1 Price falls P1 P2 E2 Technological innovation: In the early 1970s, engineers learned how to put microscopic electronic components onto a silicon chip; progress in the technique has allowed ever more components to be put on each chip. Demand Q 1 Q 2 Quantity Quantity increases 29 of 42 Simultaneous Shifts of Supply and Demand (a) One possible outcome: Price Rises, Quantity Rises Price of coffee Small decrease in supply S 2 S 1 E P 2 2 The opposing forces Two increase in demand dominates the determining the decrease in supply. equilibrium quantity. E P 1 1 D D 1 Large increase in demand Q 1 Q2 2 Quantity of coffee 30 of 42 Simultaneous Shifts of Supply and Demand (b) Another Possibility Outcome: Price Rises, Quantity Falls Price of coffee Large decrease in supply S 2 S 1 E P 2 2 Two opposing forces determining the equilibrium quantity. E P 1 1 Small increase in demand D D 2 1 Q 2 Q 1 Quantity of coffee 31 of 42 Simultaneous Shifts of Supply and Demand We can make the following predictions about the outcome when the supply and demand curves shift simultaneously: Simultaneous Shifts of Supply and Demand Demand Increases Demand Decreases Supply Increases Supply Decreases Price: ambiguous Quantity: up Price: up Quantity: ambiguous Price: down Price: ambiguous Quantity: ambiguous Quantity: down 32 of 42 FOR INQUIRING MINDS Your Turn on the Runway: An Exercise of Supply, Demand and Supermodels ? The ease of transmitting photos over the Internet and the relatively low cost of international travel ? beautiful young women from all over the world, eagerly trying to make it as models = influx of aspiring models from around the world In addition the tastes of many of those who hire models have changed ? hey prefer celebrities What happened to the equilibrium price of a young (not a celebrity) fashion model? Use your supply and demand curves to determine the salaries of â€Å"America’s Next Best Models†Ã¢â‚¬ ¦ 33 of 42 ? ? FOR INQUIRING MINDS Another Example: Supply, Demand and Controlled Substances Price S2 S1 E2 P2 Price rises P1 E1 Howe ver, we can see The equilibrium by comparing the price has risen from original equilibrium E1 P1 to P2, and this with â€Å"war on The the new drugs† induces suppliers to equilibrium E2 that the provide drugs shifts the supply actual reduction in the despite the left. curve tothe risks. uantity of drugs supplied is much smaller than the shift of the supply curve. Demand Q2 Q1 Quantity Quantity falls 34 of 42 ECONOMICS IN ACTION The Great Tortilla Crises: †¢ A sharp rise in the price of tortillas, a staple food of Mexico’s poor, which had gone from 25 cents a pound to between 35 and 45 cents a pound in just a few months in early 2007. Why were tortilla prices soaring? †¢ It was a classic example of what happens to equilibrium prices when supply falls. Tortillas are made from corn; much of Mexico’s corn is imported from the United States, with the price of corn in both countries basically set in the U. S. corn market. And U. S. corn prices were rising rapidly thanks to surging demand in a new market: the market for ethanol. 35 of 42 Demand and Supply Shifts at Work in the Global Economy ? A recent drought in Australia reduced the amount of grass on which Australian dairy cows could feed, thus limiting the amount of milk these cows produced for export. At the same time, a new tax levied by the government of Argentina raised the price of the milk the country exported, thereby decreasing Argentine milk sales worldwide. These two developments produced a supply shortage in the world market, which dairy farmers in Europe couldn’t fill because of strict production quotas set by the European Union. ? ? 36 of 42 Demand and Supply Shifts at Work in the Global Economy ? In China, meanwhile, demand for milk and milk products increased, as rising income levels drove higher per-capita consumption. All these occurrences resulted in a strong upward pressure on the price of milk everywhere in 2007. ? 37 of 42 SUMMARY 1. The supply and demand model illustrates how a competitive market works. 2. The demand schedule shows the quantity demanded at each price and is represented graphically by a demand curve. The law of demand says that demand curves slope downward. 3. A movement along the demand curve occurs when a price change leads to a change in the quantity demanded. When economists talk of increasing or decreasing demand, they mean shifts of the demand curve—a change in the quantity demanded at any given price. 38 of 42 SUMMARY 4. There are five main factors that shift the demand curve: †¢ A change in the prices of related goods or services †¢ A change in income †¢ A hange in tastes †¢ A change in expectations †¢ A change in the number of consumers 5. The market demand curve for a good or service is the horizontal sum of the individual demand curves of all consumers in the market. 6. The supply schedule shows the quantity supplied at each price and is represented graphically by a supply curve. Supply curves usually slope upward. 39 of 42 SUM MARY 7. A movement along the supply curve occurs when a price change leads to a change in the quantity supplied. When economists talk of increasing or decreasing supply, they mean shifts of the supply curve—a change in the quantity supplied at any given price. 8. There are five main factors that shift the supply curve: †¢ A change in input prices †¢ A change in the prices of related goods and services †¢ A change in technology †¢ A change in expectations †¢ A change in the number of producers 9. The market supply curve for a good or service is the horizontal sum of the individual supply curves of all producers in the market. 40 of 42 SUMMARY 10. The supply and demand model is based on the principle that the price in a market moves to its equilibrium price, or market-clearing price, the price at which the quantity demanded is equal to the quantity supplied. This quantity is the equilibrium quantity. When the price is above its market-clearing level, there is a surplus that pushes the price down. When the price is below its market-clearing level, there is a shortage that pushes the price up. 11. An increase in demand increases both the equilibrium price and the equilibrium quantity; a decrease in demand has the opposite effect. An increase in supply reduces the equilibrium price and increases the equilibrium quantity; a decrease in supply has the opposite effect. 12. Shifts of the demand curve and the supply curve can happen simultaneously. 41 of 42 The End of Chapter 3 Coming attraction Chapter 4: The Market Strikes Back 42 of 42 How to cite Supply and Demand, Essay examples Supply and Demand Free Essays In the ECO/365 course you are taken through a simulation, where you are asked to manage the supply and demand of two-bedroom apartments. The apartments are located in a city called Atlantis, which seems to be a very attractive place to live. The stimulation is used to provide the learner with real-life situation of how the pricing of a good or service (price ceiling) can affect the quantity demand, and the quality supplied. We will write a custom essay sample on Supply and Demand or any similar topic only for you Order Now Throughout the simulation the learner is asked to price the rate of the two-bedroom unit. And based on the rate, you are given the results of your actions, and how it affected the market. Through this simulation there were examples of microeconomics such as the government imposing a ceiling cap on monthly rental rates. To ensure the affordability for middle class workers also. In addition to GoodLife management deciding to offer month to month lease, and lower their rental price. In microeconomics you learn that decisions by both firms and individuals are motivated by cost and benefit considerations. Costs can be either in terms of financial cost such as average fixed costs and total variable cost (economics. about.com). We learned that macroeconomics deals with the structure and decision making of the economy as a whole (Colander, D. C. 2010). I think it is only fitting that I mention that all though most everything was consistent. However, we did see that the lower the rate of the apartment, the more of a demand. One shift in the demand curve is the availability of the two bedroom units was in high demand. In part to the price declining and there being available renters. However, in the beginning as the apartments increase, so did the price. As we notice in the simulation when the rental demand is higher the price increases. However, when the quantity demands decrease, than there is an increase in the supply. This can potentially lead to a shortage. With my organization the supply and demand could be applied in various ways. Because my filed is healthcare a few things come to mind. Supply and demand in my health center is when we receive a grant for a specific service lets say long-term hormonal birth control method, so then we will purchase a surplus of that particular supply. Additionally we will bring in more staff, or budget for overtime. In addition another way supply and demand can be applied is when a friend of mines decided to go into business of making signature drinks. Before you purchase a surplus of drinking cups, and liquor ensure that you have the demand. Do not increase the price because the demand is there right now. Utilize the skill of macroeconomics and see what is happening in your community or clientele you are trying to reach. The concepts learned about microeconomics that will help me understand the factors that affect shifts in supply and demands are based on the competition and their prices. Than once everything is balanced you have equilibrium. However, I tend to get a little confused with both concepts, so I hope that I am explaining this correctly. Lastly you have macroeconomics which shows what happens to the market when the increase or decrease of careers, and populations affects the real estate market. With the equilibrium apartment demand and supply is increase, which makes the rental rates higher. Summarizing the Supply and Demand simulation on the demand and how it affects a consumers purchasing. Happens a few different ways, when the demand for the apartments in Atlantis was high, the price increased. Then when the price for the apartments was lower, the demand was higher. However, once the price was increased it either stayed the same or decreased. Overall this simulation was very beneficial for me, I was able to utilize the tools I am learning in this course in real time. In addition to getting clarity on certain parts I was struggling in. Although I still have some ways to go, I am appreciative of this simulation. How to cite Supply and Demand, Papers

Public Policy in Food and Agriculture

Question: Discuss about the Public Policy in Food and Agriculture. Answer: Introduction: In economics, the income elasticity of demand and the cross-price elasticity of demand are two important concepts. The income elasticity of demand is the proportion of change between the demand of a product and the income level of end user. It measures the correlation between a change in required quantity and a change in consumers income (Hall and Lieberman, 2007). Along with this, the income elasticity of demand can be used to decide whether a good is a normal good or an inferior good. According to this, a normal good has an optimistic income elasticity of demand. For example, when the demand of a product boosts with an increase in the income level and declines with decrease in income level, then it provides a positive value for the income elasticity of demand. A positive income elasticity of demand points towards a normal good. Apart from this, an inferior good has a pessimistic income elasticity of demand. For case, when the demand of a good declines with an increase and amplifies with a decrease in the income level, in that case the demand is negative and the good would be considered as an inferior good (Frank, Jennings and Bernanke, 2012). On the other hand, the cross-price elasticity of demand is the receptiveness of demand for a good or service to a change in the value of the other good or service. The cross-price elasticity of demand also can be used to find out whether two goods are substitutes or complements. According to the cross-price elasticity of demand, substitute goods have a positive cross-price elasticity of demand while complements goods have a negative cross-price elasticity of demand. For example, when the price of one good raises and the demand for another good enhances, then the both goods are substitute goods. Apart from this, when the price of a product increases and the demand for the other product decreases, in that case both goods are complement goods (Besanko and Braeutigam, 2010). In this way, it can be assumed, both income elasticity of demand and the cross-price elasticity of demand are two important terms in the field of economies. In economics, a production possibility curve (PPC) is a curve that represents all the possible permutation of two goods with secure resources as well as technology. In other words, it also can be said that, the production possibility curve is an important model of scarcity as well as efficiency. The model plays a significant role to explain that how the economy of a nation may produce two products only by taking two goods into consideration (Rittenberg, 2008). Along with this, this visual model illustrates all the production possibilities that a nation has between two goods. The model mainly focuses on the concept of opportunity cost in order to provide the best economic decision to a nation or producer. The PPC states that all the inputs must be used proficiently to produce all the possible things through these two goods. In addition to this, it should also be noted down that, a bowed PPC curve points out that the trade-off between the two goods is not stable. Moreover, the PPC curve bows outwards as a consequence of the law of increasing opportunity cost. In other words, it also can be said that, a bowed outward PPC curve takes place at what time additional units of output of a good require larger declines in another good (Ross, Westerfield and Jordan, 2012). The notion of comparative advantage plays a major role in the production possibility curve. It is because of with the help of comparative advantage, a produce becomes able to choose a better product in place of the other product. An example of drainpipes and butter would be very helpful to understand the role of comparative advantage in PPF curve. In the context of economics, several resources are more proficient in order to produce one product in preference to another product. Metalworkers are more capable to produce drainpipes whereas farmers are more competent to produce butter (Berk, 2012). Along with this, if the economy of a nation is willing to produce drainpipes then it will use both metalworkers as well as farmers in the production process. In contrast, if the economy is willing to produce butter then it will use farmers instead of metalworkers. A low opportunity cost is the main reason behind it. It is because of the farmers can offer comparative advantages to the economy of a nation. On the other hand, if the economy of a nation is willing to produce more butter then it will take metalworkers into consideration. This shift of metalworks into farming industry will create big loss in drainpipes and small profits in butter. It is because of the metal workers has a comparative advantage in the production of drainpipes (Gitman, Juchau and Flanagan, 2010). As a consequence, the opportunity cost of added butter will be big because of the economy of a nation is willing to produce butter in place of drainpipes. In this case, the PPF curve will bow outward because of the p roduction of butter will reduce the production of drainpipes. It is true that, in the field of economics, the long-run market supply curve for a perfectly competitive industry depends on factor prices. For example, the long-run supply curve for a perfectly competitive industry depends on the different types of factor prices because of increase or decrease in the long run as a result of expansion of the output of the industry. In addition to this, the long run market for a perfectly competitive industry confirms that the firms have decrease, constant, and increasing cost (Booth, Cleary and Drake, 2013). Along with this, the long run market supply curve for a perfectly competitive industry also reflects and represents different quantities of good by which all the firms in the industry along with each other would be willing to supply at different prices when the industry is in the long run equilibrium. This situation is show the reaction of whole industry to change in the factor price when all the demand induced changes are taking into considerati on. On the other hand, it is also important to know that, the long run market supply curve in a perfectly competitive industry is also represents a set of price as well as the amounts. In the same way, the prices would be same or equal to the minimum average full costs of the firms. At the same time, the amounts are the equilibrium output of the industry at the each price. Along with this, the long run market supply curve in a perfectly competitive industry may be horizontal positively sloped or negatively sloped. It is because the long run market supply curve depends on the external diseconomies as well as economies (Brigham and Houston, 2013). Hence, on the basis of above analysis, discussions and facts, it can be said that, the long-run market supply curve for a perfectly competitive industry depends on factor prices. In the context of economics, price ceilings and price floors are two important price control tools. In other words, it also can be said that, both price ceilings and price floors are the major examples of government intervention and also play a significant role in order to change the market equilibrium. Along with this, price ceilings refer as the maximum prices of meticulous goods and services that are set by the government of the nation (Azzam, 2009). Moreover, price ceiling becomes a subject of problem at what time the government set them below the market equilibrium price. In contrast, price floors refer as the minimum prices of particular goods services. Price floors are the subject of concern while they are situate above the equilibrium price. On the other hand, price ceilings and price floors are similar to taxes. Price ceilings are close to taxes on producers. It is because of price ceilings play a major role in order to transfer the surplus of producers to consumers. They shrink surplus of producers and shift it to others. As a result, they turn out to be taxes to producers and subsidies to consumers (Brealey, Myers and Marcus, 2012). In the same manner, price floors akin to taxes on consumers. It is because of price floors condense surplus of consumer and also transfer it to producers. As a consequence, price floors are taxes on patrons and subsidies to manufacturers. For this reason, both are like taxes as they produce distortions from market equilibrium. Apart from this, they bore are also different from taxes. It is because of both price ceilings and price floors generate surpluses while taxes do not create surpluses. Moreover, taxes also give profits to government whereas price ceilings and price floors do not gran t proceeds to government (Ross, Westerfield and Jaffe, 2012). Consequently, it can be assumed that, they both are different from taxes. References Azzam, A. (2009). Public Policy in Food and Agriculture. USA: EOLSS Publications. Berk, D. (2012). Corporate Finance: The Core, 3rd Edition. Australia: Pearson Education. Besanko, D. and Braeutigam, R. (2010). Microeconomics, 4th Edition. UK: John Wiley Sons. Bodie, Z., Kane, A. and Marcus, A. (2010). Essentials of Investments, 8th Edition. Australia: McGraw-Hill. Booth, L., Cleary, S. and Drake, P. (2013). Corporate Finance. Australia: Pearson Education. Brealey, R., Myers, S. and Marcus, A. (2012). Fundamentals of Corporate Finance, 7th Edition. Australia: McGraw Hill. Brigham, E., F. and Houston, J. F. (2013). Fundamentals of Financial Management, 13th Edition. USA: Cengage Learning. Frank, R., Jennings, S. and Bernanke, B. (2012). Principles of Microeconomics, 3rd ed. Australia: McGraw Hill. Gitman, L., Juchau, R. and Flanagan, J. (2010). Principles of Managerial Finance, 6th Edition. Australia: Pearson Education. Hall, R. and Lieberman, M. (2007). Microeconomics: Principles and Applications, 4th Edition. USA: Cengage Learning. Rittenberg, L. (2008). Principles of Microeconomics. Australia: Flat World Knowledge. Ross, S., Westerfield, R. and Jaffe, J. (2012). Corporate Finance, 10th Edition. Australia: McGraw Hill. Ross, S., Westerfield, R. and Jordan, B. (2012). Fundamentals of Corporate Finance Standard Edition, 10th Edition. Australia: McGraw Hill.