Demand and Supply Curve for Tuna Fish Essay Example | Topics and Well Written Essays - 1250 words

Demand and Supply Curve for Tuna Fish - Essay Example This is primarily because a movement along the supply curve occurs when the price of the good changes and quantity supplied changes in line with the original supply relationship. If any of the factors affecting supply of vessels or labor market changed then the supply curve would shift either side (Arnold, 2013). If people discover that tuna has heavy concentrations of mercury the fish labor market would suffer. Though price has been increasing due to healthy consciousness about tuna fish as a rich source of protein, this discovery would drastically lower the quantity demanded causing leftward shift in demand curve from D1 to D2. Thereby, the quantity demanded for the fish would lower because of deadly effects of mercury in food which also see price lower from p1 to p2. The supply curve would remain the same and quantity of labor and vessels supplied would move along the curve. If there is no remedy, the entire tuna market would collapse unless fishermen go fishing is safe waters where there are no contaminated fish. Q 4.1: Price Ceiling in Argentina’s Electricity Market With increase in demand for electricity in urban and rural areas with a price ceiling, it would put an upward pressure on price of electricity to increase and utility companies would require funds to expand their capac ity to meet increasing demand (Q1) at lower and cheap prices (Po). Since there is an incentive to buy air conditioners to cool the houses, power blackouts would continue to increase more in urban areas than in rural areas. The difference arises because more urban centres are connected to power and residents have more disposable incomes to purchase air conditioners. In its worse form as inflation bites, utility companies would have to produce lower units of power at prevailing prices further increasing power blackouts. The supply curve would shift to the left resulting into lower units of power output (Q2) but because of the price ceiling the price remains the same instead of increasing as would have been the case under free market. Q 4.5: Price of entrees/ dinner during recession and during economic boom If the restaurant management is seeking less-price conscious clientele, it would therefore mean that during an economic boom, the target clients would have more disposable income an d therefore willing to spend extra cash on the same quantity to enjoy a leisurely dinner at the restaurant. Likelihood of the management to increase prices under economic boom would depend on price elasticity of demand among the target customers. If the elasticity of demand is more that unity, then it would mean that a unit change in price would result into more than one unit change in quantity demanded. On the other hand, if elasticity is less that unitary, then a unit change in price would result into less than a unit change in quantity demanded (Landsburg, 2011). Therefore, in this case because the assumption is that target clientele is less price sensitive, then it means that price elasticity of demand is less than unitary. As a result, if the management decides to increase prices during an economic boom, then a unit change (increase) in price would result in less than a unit change (reduction) in quantity demanded (or number of clients). The resultant effect is that total reven ue would increase more than before the original status because change from P0 – P1> Q0 – Q1. This therefore would let the management to allow customers to eat a leisurely dinner because they will have covered their costs and accrue more revenue. In addition, the ambience that comes with the restaurant having fewer customers would attract more customers who are less price

How successful is chinese "soft power" in the west Essay

How successful is chinese "soft power" in the west - Essay Example The China’s soft-power activities in the international world include the use of foreign aids and investment, exchange programs, diplomacy, peacekeeping and humanitarian assistance, and multilateral involvement. These vary in application over the western countries as compared to the African and other Asia countries. Nevertheless, the China’s soft-power activities are not successful in the West as evident in other countries, despite experiencing positive outcomes in the economy and reputation. Determining the China’s success in the west would help evaluate the usefulness of the soft-powers towards the western countries. This paper will evaluate the success of Chinese soft-power in the west that will be achieved by analysing the economic and social-cultural gains as well as the limitations to great successes as obtained in other regions. China has used its soft power to grow its trade activities with the western countries and this has borne positive outcomes in the American and European economies. China has attained increased persuasion in the west through use of her economy and rich culture to enter into trade deals as well as increase levels of the exports to the western countries. China has increased favourable trade relationships, notably with the Latin American countries through bilateral agreements (Gill & Huang, 2006 p.20). This has promoted economic activities between the citizens of both regions by attaining apt environment for businesses to thrive. The exports and financial transactions with countries such as Brazil have been on a rise in the recent years. A similar observation is made on the Chinese trade with the United States. China is the largest single exporter in the American market with a range of products such as in the telecommunication and textile industry (Gill & Huang, 2006 p. 24). The increase d exports are