Demand Wrap Up Part 1

Part 1:

• utility: the usefulness of a good or service to an individual. The toothpaste had a good utility for me as I used it every day.
• complementary demand: the demand of a good or service which increases when an other good or service related to its sales also increases in demand, and decreases with its companion good/service decrease of demand. The sale of tennis balls decreases  when the complementary demand of tennis rackets plummeted.
• substitute demand: the utility of a good/service can be found in a different good/service, so that if demand increases in one, it decreases in another. The increasing demand of almond milk causes the substitute demand of soy milk to decrease as the consumers consistently choose this beverage to use in cooking and drinking rather than soy milk.
• elastic demand: the price of the good/service can not fluctuate too much without a similar change in demand as the good/service is not entirely essential to live. The elastic demand for lipstick saw the price increases follow a decrease of demand as people decided the price became too high to pay for the product.
• inelastic demand: the price of the good/service can change without too much of a change in demand as the good/service is necessary to daily life or survival. The lone gas station in Death Valley could raise its prices and still see the same demand as people did not want to be stranded out in the desert with a useless car.
• Pictures in order to terms in order:
  

  

  http://lakeforestdentalarts.co/2012/12/lake-forest-dentist-crazy-flavors/

  

  http://www.ifcta.org/

  

  http://www.seriouseats.com/2012/02/almond-milk-how-to-make-dairy-alternatives-vegan-gluten-free.html

  

  http://www.thegloss.com/2010/11/22/beauty/gallery-10-weird-facts-about-lipstick/

  

  http://www.flickriver.com/places/United+States/California/Panamint+Springs/

Changes in Demand Environment

Consumer Tastes

The triangle plotted points represent the increase in demand from the original demanded. There is an increase in demand at each and every price because the good/service (in this case organic foods) has become more popular with consumers and thus more people are demanding and buying it. The demand environment in this case is experiencing Consumer Taste changes as the price of the good does not change, it is simply the market demand environment. However, price still dictates the curve expressed by the graph as it is natural for more people to buy if the price decreases. As people read more about the benefits of organic food the demand increases.

http://io9.com/5940291/no-organic-foods-arent-more-nutritious-than-other-kinds

http://www.carlyngalerie.com/index.php?cPath=821_825

The triangle plotted points indicate the New Quantity Demanded per month as the circles are the original Quantity Demanded per Month. There is a decrease in the demand at each and every price for this good/service (in this case it is letter openers) and this reflects the demand environment concerning consumer tastes as changing. The utility of letter openers are judged as less by the consumers and thus there is a fall in demand despite the same price. Again, the curve of the graph simply represents the nature of price affecting demand. It is the entire triangle move over which signifies the consumer taste factor in the demand environment. As the use of letters to communicate are replaced by texts, Facebook, etc., the demand for letter openers decrease.

Demand Headlines

Complementary Demand: PlayStation 4 Plays up Interest, Price and Consumers feel Played with Increased Game Prices
Supplementary Demand: Samsung Takes a Bite out of Apple Sales with Apple Price Hike
Elastic Demand: Revlon Nail Polish Prices Soar, Cheaper Competition Covers New Base of Consumers
Inelastic Demand: Water Prices Tap into Wallet, Consumers still Drink Bitter Deal

Article for Inelastic Demand - Mapleview, Oregon - I am currently at the home of the Tabor family, one of the many families that must swallow the new price increases on water utility this week. The city of Mapleview had decided after a bitter meeting and close vote to implement these new price hikes on water utility. However, the people affected by this increase express anger and have been speaking out in order to draw attention to the issue they feel has been unfairly forced upon them. Speaking with Mr. Tabor, I lean that despite the unrest over the water prices, the Tabor family will most likely continue to use roughly the same amount of water they did before the price increase. Asked why, Mr. Tabor replied "what else can we do?"indicating that consumers will pay for this resource despite its increased cost.

Demand and Utility

1. Movie: the utility of this good is the entertainment value that will occupy my attention.
2. Coffee: the utility of this good is that it will keep me awake as I try to finish my History IA.
3. Gasoline: " " fuel for my car in order to transport myself, others, or to make trips to stores.

Market System

I mostly approve of the  current market system implemented in the USA. The concept of supple and demand provides the vast majority with items or services they desire, and the lure of profit has refined and improved many goods and services. Additionally, the market responds to our - the consumers - needs and can change to and adapt to our tastes or interests. However, the more out-for-the-profit mindset leads businesses to neglect needs that only a small portion of the population possesses. In this way, the market system of the USA is playing into an economic survival game which leaves the unfortunate few high and dry whose needs are specific and require funding and special manufacturing, such as rare medical conditions wherein research grants are not provided due to the scarcity of demand as compared to the abundant need from consumers with more common conditions. Yet, the USA has attempted to correct these oversights with government programs and funds; it is important to note that while this appears to be an altruistic decision, public opinion which advocates equal treatment means the USA might lose market demand if knowledge of their negligence is made widely known, signifying their actions are again motivated by profit, perhaps even the profit of public contentment.

Opportunity Cost

Yesterday, I was faced with the decision to either buy a $1 candy bar (as part of my school's fundraiser) or spend the $5 I currently had to sign up to participate in the IB Dessert. Yesterday was the last day that students or parents could pay to attend the IB Dessert, so my choice was either to get the candy bar - effectively preventing me from purchasing the IB Dessert ticket as I would have an inadequate $4 - or get the ticket which would leave me with no money to buy the candy bar. I chose to spend my money on the IB Dessert (what a good student) and forfeit the candy bar. With the IB Dessert ticket purchase, my opportunity cost became my obtaining of any candy bars that were for sell that day.

Scarcity

This is Rosemary Focaccia bread, one of my favorite foods! Whenever we get this from the store, it goes quickly because it is a popular food item in our household. Therefore, this is a scarce resource for me and I always try to eat as much as I can before it disappears.