ECON Assignment Example | Topics and Well Written Essays - 1000 words - 1

ECON - Assignment Example Income-elasticity is found to be 1.62. This means that a one percent increase in the average income of its customers will increase the amount of goods demanded by 1.62%. In this consideration, the product is elastic and therefore the firm can make arrangement to raise its price when income rises. Advertisement elasticity on the other hand, is 0.11 which implies that a 1% rise in expenses used for advertising will lead to a rise in the amount of goods demanded by just 0.11%. The demand of the product is therefore inelastic to advertising. Due this reason, more advertisement doesn’t necessarily mean that the company can raise the price since this will derive would drive customers away. With respect to microwave ovens in the area, elasticity is calculated to be 0.07 and this means that an increase of one percent of ovens in the area will increase quantity demanded by 0.07%. The revelation indicates that the demand for the product is inelasticity and negligible in pricing strategy of the company. From the above analysis, the amount of the products demanded shows a lot of responsiveness towards price and income of the clients. The demand is however moderately responsive to price of competing goods with advertising and microwaves existing in the area recording the lowest response indicators to demand Since the price elasticity is negative a reduction or cut in price would raise the quantity demanded. The firm will attain maximum revenues at the point where the degree of elasticity is one. Holding that argument, a cut in price will raise the quantity demanded and thus increased net gain in sales as elasticity moves towards unity. In my opinion therefore the firm should reduce the price as this would result in an increased revenue generated and market share. The market for this company is therefore at equilibrium at the point where price is 384.48

The Importance of Learning and Achievement in Life Regardless Essay

The Importance of Learning and Achievement in Life Regardless - Essay Example In the school year 2004-2005, the researcher had the privilege of working with the most wonderful Middle School Resource Room children. The experience of teaching in a rural farming community was an eye-opening experience and one that I will never forget. The following research has been based on the idea that children of poverty often do not achieve their highest potential in school. One way or another, it seems that grades are not important to them. In my opinion, grades are not important to the said students because they feel as though they do not have many opportunities such as getting a good paying job, acquiring lots of money and so on. Resource Room students often see themselves as inadequate in the area of knowledge, skills and brains. Hence, it is the duty of the teacher or teachers to help these students see what they have to offer the world, the job market and other sectors of success in the society. Although this is the case, it could not be denied that the main will of th ese students is to free themselves from poverty. How? Through short term schooling, earning minimum grades and planning to obtain a minimum wage paying job in the future. In this regard, understanding poverty and middle school resource room student achievement will allow teachers to begin to understand the students’ thinking, their rationale for school, their view concerning the importance of school, their patterns of displaying several behavioural reactions towards numerous situations concerning themselves and their education.