How can understaning elasticity of demand help a firm in its Essay

How can understaning elasticity of demand help a firm in its planningExplain how the different levels of elasticity influence behaviour within different market structures - Essay Example Elasticity of demand explains the extent to which consumers are willing to relinquish their consumption of a particular product due to price increase and vice versa. Upon setting goals and objectives of the firm, the management ought to strategise and plan operations that facilitate goal achievement. As noted earlier, revenues can be raised by either raising quantity supplied via expansion or altering prices. Quantity supply increment is associated with increase in costs and thus requires careful analysis and hence a long-term decision. On the other hand, due to the negative effect that price has on sales; its increment does not necessarily result to increased revenue, but rather depends on the proportionate change in quantity demanded. For that reason, decision maker ought to consider elasticity of demand before initiating a price alteration. As matter of fact, increase in price may either raise or lower total revenue, though it has no effect on cost. Moreover, planners ought to understand the determinants of elasticity and work, to their advantage, either to increase or reduce it. In an inelastic demand situation, a change in price results to a less than proportionate change in sales. A rational firm may therefore increase price as it adds to revenues. However, as price the consumer surplus reduces and hence consumer’s responsiveness to price increases (Guru, 2010). At the point where elasticity becomes unitary, it makes no economical sense to raise price, since the impact on revenues is negligible if not zero. Alternatively, reducing prices on elastic commodities increases revenues and vice versa. Remarkably, in an elastic situation, the change in price is offset b the more than proportionate change in quantity demanded. Among many other factors, elasticity ought to be a key variable in pricing policies. Secondly, elasticity of demand can be used to predict availability and

Acting Out Culture by James S. Miller Essay Example | Topics and Well Written Essays - 750 words

Acting Out Culture by James S. Miller - Essay Example However I believe these beliefs are wrong due to the fact that religion is alive and being practiced on a daily basis. In the critical and incisive essay â€Å"The Wages of Sin† by Francine Prose she described the Arrogant Fat Police and their assistants who perceive overweight people as a strain of overstuffed outlaws have chosen a religious dialect and metaphor to split the social order into two parts: The narrow, slender and healthy souls guaranteed to have a place in heaven and the shockingly overweight souls guaranteed a place hell. To put more emphasis on this divergence, the overweight Police not forgetting self-loathing overweight individuals themselves, emphasize primary controlling of â€Å"overweight behavior,† which would means introduction of fat taxes. These taxes she believes should be subjected to fans of movie popcorn, massive burritos, enormous masses of ice cream, soda, and all other junk food that predisposes one to becoming overweight or excessively fat. The Overweight Police and their devotees have also evangelized the notion that ethical immorality, â€Å"immoral self-indulgence,† causes one to indulge in activities that predisposes one to becoming obese. It is therefore true to say that overweight people are not destitute victims of the surroundings or hereditary traits but the consequence of their individual laziness, greediness, and gluttony. One more group that indemnifies overweight individuals from experiencing the brand of stigmatization is the world’s shared opinion that plump overweight people can only blame themselves for their condition which is lack of self-control when it comes to consumption of food.   She exemplifies her discomfort disgust of the fact that when overweight people are trying to enter, fit or exit public transportation vehicles such as buses, commercial plains and the subway they almost all the time have to brush their fleshy bodies with everyone (Francine). He displays that their condition is discourteous and self-centered. He finds fat people so over-sized that them and their overweight colleagues and allies are supposed to fee for at least two commercial plane or bus permits to provide accommodation for their lumbering rumps.    Lastly according to â€Å"Wages of Sin†, if overweight people can be protected from themselves, it will be mandatory for them to leave their selfish desires of the flesh that have transformed them into overweight persons and turn to God and spiritual intervention and repent for their sins. She talks of Twelve Step to be followed; evangelistic gospel zones and other inspirational implements entrenched in the language of God, the devil, sin, and divine providence that these people should follow. Although in the â€Å"Wages of Sin† the author focuses on overweight people and their food consumption habits, in â€Å"Add Cake, Subtract Self-Esteem,† by Caroline Knapp, she mostly focuses on the way women view thems elves and their bodies. This is mostly concerned with their weight, appearance and general overall look. Women are very concerned with the way they look and their self body image. They are very conscious of the way people perceive them and therefore they always want to ensure what they see in the mirror will appeal to everyone else. According to Caroline the eating habits of women in the world today has greatly changed whereby women are judged with what they eat and the way they eat. Women are expected to eat very