Good morning Ms. Teetaert and fellow classmates of economics
40s, before ending Fridays class we were able to touch upon the three different
types of government which were the provincial, federal and municipal government
and what each is responsible for. So today in my blog I will be giving you a little
introduction about the three governments and what each is responsible for and
some of their limits.
So the first type of government I would like to talk about
is the Federal government. The federal or national government is the central
level of government in Canada, and it is also involved in many aspects of
Canadians lives. This type of government plays a big role in such things like
local planning and development, protection or persons and property, transportation,
utilities, and local parks and recreation, the economy, National defense and
security, criminal law, foreign affairs and First Nations policy. But despite
being a central level of government, there are important limits on its powers
and jurisdictions. Some areas in which the Constitution disallows the federal government
to be apart of are areas of public policy, such as health care, education and
welfare.
The next type of government is the provincial government.
Now under Canada’s constitution, provincial governments have many key powers and
jurisdictions, such as providing fundamental social services (for example,
health, education and welfare), Control over civil and property rights, and
power over local governments. But even
though the provincial government is an important level of government in Canada
it also has some limits on their powers and jurisdictions. Some of those being the
areas of public policy, such as foreign affairs, national defense, criminal law
and many more.
And the third final type of government is the municipal
government. This type of government is in charge of basic services such as
police and fire protection and as well as being in charge of solving the special
problems associated with urban localities such as environmental quality, and
parking shortage. As you can see compared to the other two types of government
the municipal government does not have a lot of power but the powers that have
been granted to the municipalities have increased dramatically over time.
Good morning Ms. Teetaert and fellow classmates of economics
40S, today I will be talking about complimentary goods and substitute goods. Now
you may be asking yourself or maybe not what complimentary goods and substitute
goods are.
Complimentary goods are basically goods whose use is
interrelated with another associated good. And also demand for one good results
in the demand for the other good. You can pretty much see it like if you have
this product you need to have this other product with it for it to satisfy yourself, so pretty much they act like an addition to one another. An example for this
are cars and gasoline since you need to fuel your car with gas if you want to
drive the car.
Substitute goods are different goods that satisfy the same
consumer needs and since they satisfy the same needs, one could replace the
other. An example for this would be Coca-Cola
and pepsi since they pretty much taste the same and can easily replace one
another.
Complementary goods and substitute goods are known to easily
illustrate the difference between changes in quantity demanded and changes in
demand. For complementary goods, it shows this in a way that if for example the
price of a product decreases then there will be an increase in demand for that
product. If this product has a complementary good then that means that this
product requires the use of another product resulting in an increase in
quantity demanded for the product and an increase in demand for its
complementary product even if the price of the complementary product hasn't
changed. Although, if there is a decrease in quantity demanded for the product
then it will also cause a decrease in demand for its complementary product.
For substitute goods, it shows this in a way that for
instance there are two products that are similar and both satisfy the same
needs. If the price of one of the products decreases then there will be a
higher demand for that product which can then replace the other product. In other
words the decrease in price resulted in an increase of quantity demanded for that
product and a decrease in demand for the other product. Although if there is an
increase in price for that product then it would result in a decrease of
quantity demanded and an increase in demand for the other product.
"What Are Substitute Goods? Definition and Meaning."
Business Dictionary.com. Web. November 23, 2014.
<http%3A%2F%2Fwww.businessdictionary.com%2Fdefinition%2Fsubstitute-goods.html>.
"What Is Complementary Good? Definition and
Meaning." BusinessDictionary.com. Web. November 23, 2014.
<http://www.businessdictionary.com/definition/complementary-good.html>.
"Living Economics." : Complements and Substitutes
(transcript). Web. November 23, 2014.
<http://www.livingeconomics.org/article.asp?docId=289>.
Good morning Ms. Teetaert and fellow
classmates, today I will be continuing the topic of elasticity. To be more
specific, I will be summarizing and explaining price elasticity of supply.
We are aware that the price elasticity of
demand measures the extent to which the quantity of a product demanded responds
to a change in price. Knowing this definition it is easy to get confused with
the definition of price elasticity of supply. The price elasticity of supply measures the extent that the quantity of
a product supplied responds to a change in price. It basically means that
it is a measure to show the responsiveness or reaction of the quantity supplied
of a good or service to a change in its price. Identifying the relationship
between price and quantity supplied is a good step in learning the price
elasticity of supply.
My first question after learning this was, “why does all this matter and how does it
benefit us?”
Well, the price elasticity of supply really
does help us because it tells us people how fast supply responds to the
quantity demand and price increase. For example, when there is an extremely
popular product out in stores therefore resulting it to be in short supply,
then this situation may cause the product’s price to increase. A very popular
product of 2013 was a mini LED flashlight which first sold for only $3.00 but
gradually as it got popular the price ended up increasing by ten/fifteen
dollars.The manufacturers of that
product will increase the supply to keep up with the demand, which only makes
sense. The higher the elasticity of supply equals the faster the increase of
supply when demand and price increase.
The people are not the only ones who
influence supply; the government also takes part in this. The government
impacts supply by subsidies, taxes, and regulation.
Subsidies are a government payment that
helps a business or market. An example of this would be how the government
funds some parts or all of an industry’s production. This is a fairly good
influence because it increases the supply of a good.
While subsidies are a positive, taxes are a
negative. Taxes are the government reducing the supply of some goods. The
government is putting an exercise tax on them. And finally, regulation is when
the government influences the price, quantity, or quality of a good. This may
raise costs and be negative for buyers.
If a supplier can compromise and come
quickly with solutions when price changes occur the supply is called ELASTIC,
if the cannot adjust to these price changes then the supply is called
INELASTIC. But if the price change results in a relational change in the
quantity supplied it is referred to as UNITARY ELASTIC SUPPLY.
There are a few factors that determine the
elasticity of supply. Time period happens to be one of them, supply may be more
elastic. A production company may not be able to change its factor inputs. In
agricultural industries the supply is determined by making planting decisions
months before. Another factor is the ability to substitute during production.
Sometimes it is quite easy to make substitutions for some products, but in
other cases it is hard. For example, gasoline.The factor of the ability to store products is reasonable. If a
productions company has a lot of extra capacity then they should be able to
increase output quite quickly without a rise in costs making supply elastic.
Every business has to sit down and think
about how their production of goods or a service is going to benefit them and
how much money they will take in. Another question to consider is, how the total production is going to be
affected by the number of workers. Obviously thinking, the more workers the
quicker the job will be done. The expectation is that if there are two people
working in a production for rulers, the output should be more than if
there was one person working. The change in output from hiring one more worker
or unit of labour is called MARGINAL PRODUCT OF LABOUR.
Price Elasticity of Supply:Factors Affecting It
Work Cited
Roy, Harold. "Price Elasticity of Supply." Price Elasticity of Supply. N.p., 10 Apr. 2009. Web. 17 Nov. 2014.
Hello Ms. Teetaert and fellow classmates. Throughout last week we discussed elasticity and the effect it has upon demand and price. In the simplest of terms elasticity is the measurement of how responsive a variable is to a change in another variable. For example:
"If I lower the price of my product, how much more will I sell?"
"If I raise the price of one good, how will that affect sales of this other good?"
When a company wants to increase it's revenue they look towards the elastic demand or inelastic demand of their products. If they were to increase the price of their products, consumers may or may not be willing to still purchase them. To understand price elasticity of demand one must know the difference between elastic demand and inelastic demand. Elastic demand is a type of demand that will rise or fall depending on the price of the good. For example, candy bars are an elastic demand. If the price of that candy is around one dollar, most people will buy the candy and it will be high in demand. However, if that same candy bar's price rose up to four dollars, most people would not buy the candy.
Inelastic demand is the opposite. People will buy goods with an inelastic demand no matter what the price is. A good example of this would be gas. People complain and complain about gas prices, yet they still buy it because they need it, even if it is three dollars a gallon. Another example would be life-saving medications. Even if they are expensive, people will still buy them to maintain their health.
The following are product characteristics that help to determine price elasticity of demand:
Last week in class, we talked about supply and demand.
Supply and demand is an economic model of price determination in the market. Demands made by the consumers will equal the quantity supplied by the producers, which will result in an economic equilibrium ( is when the quantity demanded is equal to the quantity supplied) for the price and quantity. Consumer demands always fluctuates, so does the price. There are various factors that affects the demand;
Price
Change in price of substitute products
Change in price of complementary products
Income
Tastes and Preferences
Expectations of future prices
Number and characteristics of buyers
Expectation of future incomes
When the price changes base on these factors, the consumers may respond in different ways. When the price increases, less of the product will be purchased at the current level od income. Consumers may substitute towards a relatively cheaper product. The opposite relationship between the price and quantity demanded is referred to as the law of downward sloping demand. When the price is lower consumers will buy more of the product, and less if the price is higher. The inverse relationship between price and demand, is that when on rises, the other falls.
Demand is the consumer side, and Supply is the producer's side. The producers represents the quantity of goods and services that are provided to the market. The supply side constantly changes as the number and variety of products that are made available to the consumers increases. Some factors affecting the supply side;
Price
Production cost
Technological change
Government regulations
Weather conditions
Suppliers may respond to the price change in various ways. A higher price must be acquired in order for the quantity supplied to increases. Additional cost of supplying more to the market may increase beyond a certain level. The positive relationship between price and quantity supplied is referred to as the law of upward sloping supply. This means that if the quantity supplied for a good increases, the price will also increase.
There are four basic laws of supply and demand:
If demand increases (demand curve shifts to the right) and supply remains unchanged, a shortage occurs, leading to a higher equilibrium price.
If demand decreases (demand curve shifts to the left) and supply remains unchanged, a surplus occurs, leading to a lower equilibrium price.
If demand remains unchanged and supply increases (supply curve shifts to the right), a surplus occurs, leading to a lower equilibrium price.
If demand remains unchanged and supply decreases (supply curve shifts to the left), a shortage occurs, leading to a higher equilibrium price.
Work Cited
Merritt, Cam. "What Is a Demand Curve That Is Downward Sloping?" Small Business. Demand Media, n.d. Web. 02 Nov. 2014.
Moffatt, Mike. "How Do Economists Define Supply?" About Education. N.p., n.d. Web. 02 Nov. 2014.
So the first type of government I would like to talk about
is the Federal government. The federal or national government is the central
level of government in Canada, and it is also involved in many aspects of
Canadians lives. This type of government plays a big role in such things like
local planning and development, protection or persons and property, transportation,
utilities, and local parks and recreation, the economy, National defense and
security, criminal law, foreign affairs and First Nations policy. But despite
being a central level of government, there are important limits on its powers
and jurisdictions. Some areas in which the Constitution disallows the federal government
to be apart of are areas of public policy, such as health care, education and
welfare.
And the third final type of government is the municipal
government. This type of government is in charge of basic services such as
police and fire protection and as well as being in charge of solving the special
problems associated with urban localities such as environmental quality, and
parking shortage. As you can see compared to the other two types of government
the municipal government does not have a lot of power but the powers that have
been granted to the municipalities have increased dramatically over time. 
