...Problem 3.1 Demand and Supply Curves. The following relations describe monthly demand and supply conditions in the metropolitan area for recyclable aluminum QD = 317,500 - 10,000P (Demand) QS = 2,500 + 7,500P, (Supply) where Q is quantity measured in pounds of scrap aluminum and P is price in cents. Complete the following table: Price Quantity Quantity Surplus (+) or Supplied Demanded Shortage (-) (1) (2) (3) (4)= (2)-(3) 15¢ 16 17 18 19 20 SOLUTION Price Quantity Quantity Surplus (+) or Supplied Demanded Shortage (-) (1) (2) (3) (4)= (2)-(3) By putting the values of P in the QD & QS equations: 15¢ 115000 167500 -52500 16 122500 157500 -35000 17 130000 147500 -17500 18 137500 137500 0 19 145000 127500 17500 20 152500 117500 35000 Problem3.2 Demand and Supply Curves. The following relations describe monthly demand and supply relations for dry cleaning services in the metropolitan area: QD = 500,000 - 50,000P (Demand) QS = -100,000 + 100,000P (Supply) Where Q is quantity measured by the number of items dry cleaned per month and P is average price in dollars. A. At what average price level would demand equal zero? B. At what average price level would supply equal zero? C. Calculate the equilibrium price/output combination. SOLUTION A. From the demand relation,...
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...Supply and Demand Name University of Phoenix Supply and Demand People who are planning to buy a new house should first be well informed about the status of their new locality’s real estate market. The housing market is strongly governed by certain economic conditions, and understanding the economic trend will allow interested buyers to wisely choose the best price for their new house. It is also an established fact that the business conditions can also influence the real estate market; however, the huge aspect that will truly affect housing prices is still the law of supply and demand. The principle of supply and demand is an economic principle that is applicable to all commodities whether material or immaterial. It is a principle that establishes the relationship between the price of the product to its availability and supply. So for example, if there is a high demand for a product that currently has low supply, the tendency is for the prices to be higher since there is the security of the market that can support the price imposed. On the other hand, if the demand for a certain product is low, but the supply is high, then its price will naturally decrease simply because of its high availability in the market (Mankiw, 2004). The homebuilding industry originally started out of the human needs to have stable and hardened shelters that can provide them with long term protection and comfort, especially when they are already starting to...
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...Supply and Demand University of Phoenix XECO/212 When prospective homebuyers are looking to buy a new home in their area, they should consider the health their local real estate market is in. A prospective homebuyer needs to have an understanding of the many different economic trends a real estate market can have, There are many different business cycles and real estate trends that will have an affect on why a homebuyer would purchase a home and there are different monetary advantages depending on what kind of business cycle going on at the time. The major factor that has an influence on the price of housing is supply and demand of your local real estate. The most basic economic principal on a products price is supply and demand, Supply and demand determines the price of products based on the availability products. If a products demand is high and the supply is low then the price will increase, because people are buying large quantites of the product and if supply is high and the demand is low, It’s probable that people are not buying the product at that time so the price will generally be lower than it would if people were buying a large amount of the product. There will always be a need for homes because there will always be people that need them which makes homes inelastic. The terrorist attacks in September of 2001 created a substantial amount of uncertainty within our economy and spawned a consumer confidence crisis...
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...The Research Proposal For The Relationship among Shanghai Commercial Housing Price and Four Variables, Disposable Income, Completed Housing Area, Interest Rate, and Inflation Rate (2007-2010) BY FIN (2) Yang Bohan 0730200084 Tel: 13750016724 Guo Bingyu Liu Yuanjia Xia Jinjing Teng Linyan Li Hui 0730100034 0730100086 0730200079 0730200063 0730200148 Beijing Normal University – Hong Kong Baptist University United International College May 14, 2010 0 Table of Content 1. 2. 3. 4. 6. 7. 8. Title ........................................................................................................................................... 4 Introduction ..............................................................................
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...Analysis of Indian Cement Industry 1 • Industry Structure • Regional Scenario • Demand Dynamics • Cost Structure • Ready Mix Concrete (RMC) • Demand • Key Demand Drivers • Supply • Operating Rates • Prices • Profitability • Player Profiles 2 :3 : 13 : 55 : 75 : 86 : 99 : 102 : 132 : 143 : 154 : 161 : 168 Industry Structure 3 Porter five force analysis Industry structure •As of March 2011, the installed cement capacity of large plants in India stands at approximately 284 million tonnes. •This is accounted by around 172 large cement plants. In addition to large cement plants, around 365 mini cement plants account for approximately 11 million tonnes of cement capacity in India. •The industry can be broadly classified into pan-India, regional and marginal players. Pan-India players include large players like Holcim group companies- ACC and Ambuja and Aditya Birla group company- UltraTech Cement (including Samruddhi Cement) . •Companies of both these groups are adding capacities through either greenfield or brownfield expansions. Industry structure •Players whose presence is restricted to one or two regions, with a stronghold in the markets of their respective operations are included in the category of regional players. Key examples of players included in this segment are Jaiprakash Associates (North and Central), Lafarge (concentrated in the East), India Cement (South), Shree Cement •(North), Binani Cement (North), Kesoram Industries (South), OCL (East),...
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...rapidly. This led to an increased demand of office space and property for business development and expansion. The expansion of the business sector was driven by the dire demand of goods and services by increasing world population. With increased population, firms were forced to invest more on their producing plants. This was meant to cater the increasing level of demand. Subsequently, in addressing the market demand, firms were called to employ more personnel to aid in its production. This led to the demand of the tertiary employees who were to inject their expertise in production to ensure quality and quantity products were developed. Employing additional staff meant increased demand of office space. Property developers were therefore called in to address the emerging demand for new office spaces. In addition, the demand for additional office space was also necessitated by the 20th century market liberalization and subsequent globalization. Globalization encouraged the movement of firms from their traditional locations i.e. mother countries to other nations. These relocations came with an increase in demand for both manpower and office space. From the aforementioned, it is apparent that globalization was the nerve driver of property development of most countries. In addition, it is evident that with it came an increased demand of service sector employees. However, this has largely changed in the 21st century (Havard, 2002). The demand for office space in the 21st century...
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...estate to measure a country's economy lost the rise. Real estate industry continues to heat up to China's economy will surely caused significant effects that have positive and negative. When the rise in house prices range in control and its influence will when outweigh the costs, conversely when house prices do not control, its influence will do more harm than good. Introduction Real estate prices question has been one of the important bothers Chinese governments, in my personal view, China's real estate prices continued to raise a few reasons. Was the total population growth, income level, continue to improve, housing costs rising prices, housing loan stimulation, rising expectations, etc. These reasons have been plagued by domestic real estate researchers, real estate prices also leads to national many influence. Its positive influence is can promote economic growth and increase GDP; Negative influence is can lead to inflation, expand the gap between rich and poor. 3.0 Research Methodology Choosing the topic and search the information on the Internet Neatening up the information I search from the Internet Collecting the data Making conclusions Analyzing the reasons by myself Coming up with the solutions of the problems Writing the report 4.0 Main body As is known to all, recent 10 years house prices have plagued the government of China and national. The continued rise in house prices to common people bring heavy life burden, "humble abode" phenomenon...
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...Timber Industry Economic Profile Following is a discussion of the timber industry including how several economic factors affect it, including: price elasticity of supply and demand; positive and negative externalities; wage inequality; and monetary and fiscal policies. Price Elasticity Important to note is that the timber industry and the lumber industry are not one in the same and experience differences price elasticity. The price elasticity of demand for the timber industry is inelastic. Often landowners will hold inventory to sell at a later date if demand is low. The timber will not lose value in storage so price does not need to change. The price elasticity of supply for the timber industry is elastic, as prices typically increase in the spring due to low volume of timber as a result of winter weather. Possible Negative Externalities Recreational and Commercial Fishing: Corporations may elect not to harvest timber and lose earnings if timber harvesting damages the fish habitat. Water Pollution: If timber harvesting pollutes the public water system, costs may be incurred in the remunerations effort. Risk of Flooding: Increased runoff my decrease sewer capacity costing taxpayers additional money to repair the damage. Water-Quality Reduction: If timber harvesting decreases the quality of water, other companies that use the water to cool or clean their equipment or products may suffer damages. Possible Positive Externalities Recreational Opportunities:...
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...Objective 3 Introduction 4 The Real Estate Sector in India 4 A Brief about DLF: 5 Demand and Supply Scenario 6 Reasons for growth in Real Estate Sector: 9 Demand Side: 10 Supply Side: 11 Production and Cost Structure 12 Market Structure and Player’s Strategy 14 STRATEGY FOLLOWED (Player Considered: DLF): 15 Observations and Analysis 18 References 20 * Objective The sector chosen for our project is Real Estate Industry. The objective of our project is to deeply analyze the Real Estate Industry in India. Our Analysis includes Demand and Supply in the real estate market, Production and Cost analysis, Consumer behavior effect on demand and costs. We have further analyzed the Market structure of Real Estate Industry and the different strategies about by different players. During our Analysis we have taken DLF infrastructure as an illustration to reflect some concepts, facts and figures about Real Estate Industry. * * * Introduction * The Real Estate Sector in India The real estate sector in India is flourishing rapidly with a growth rate of 30 percent each year. About 80 percent of the real estate development in India has been in the field of residential housing. The remaining 20 percent of the real estate includes office, shopping malls, entertainment centers, hotels, multiplexes and hospitals. India’s booming outsourcing business industry and consumption-led growth are contributing significantly to its real estate growth....
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...market in Malaysia has well-informed significant price extension over the past fifteen years with prices, at some states, extended at higher rates. House price movements is inherent with the regional economics and regional demographics such as income, cost of capital, population change and stock prices. However, sudden price change could affect home ownership to some extent. Under any environment, house as a basic necessity to continue living. The health of the housing market is a topmost importance and straight related to ability to own and thus, the purchasing power of the public since housing industry is an important sector to the Malaysian economy. The graph below shown the Malaysia house price index from 2000-2014 which well explained the percentage of house price increasing of each year. 2.0 Factors that cause the house price to increase House price determined by the market in many factors. The market term is known when a group of buyers and sellers interact to exchange goods and services. Buyers demand goods and services yet sellers supply goods and services in the market. Demand is defined as the ability and willingness to buy a particular quantities of goods in a given period of time at a particular price. The law of demand states that the higher the price of a product, the lower the quantity demanded of that product and the lower the price of a product, the higher is the quantity demanded, ceteris paribus. Supply is defined as the ability and willingness to sell...
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...market there are two sides supply and demand that needs to interact with each other. The market equilibration process is the process where suppliers supply product to the exact quantity demanded and there is no excess product. This results in efficient market to conduct business. This paper describes how housing prices in market is affected by changes in supply and demand so that we can have better understanding of equilibration process. The main concept in economics are supply and demand in a market to conduct business. Law of demands states that for any goods or service as the price falls, the quantity demanded rises and also when price rises, the quantity demanded falls (McConnell, Brue, & Flynn, 2009). The relationship between price and quantity is negative and downward sloping curve as seen in Figure (b) in Appendix A. Price is one of the main factor related to quantity demanded but there are also other factors known as determinates of demand such as buys preference, number of buyers, incomes of buyers and prices of related goods (McConnell, Brue, & Flynn, 2009). Law of supply states quantity supplied rises as price rises and as quantity supplied decreases price also decreases (McConnell, Brue, & Flynn, 2009). Quantity and price are directly related to each other therefore creates upward sloping curve as seen in figure (c) in Appendix A. Like demand, the efficiency of supply are determined by factors such as technology, taxes, resources prices, number of sellers and producers...
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...for many is literally just dream with soaring house prices, Sydney is continually mentioned in the top 20 most expensive cites in the world to buy property in. Over the past decade we have seen a substantial increase in housing prices and a reduction in housing affordability in Australia. Home ownership in Sydney has been a hot topic of discussion for many years and housing affordability has been a key policy goal for government. Both state and commonwealth governments have funded numerous housing assistance programs over the years. With the one goal in mind to help first home buyers achieve the great Aussie dream by buying their first home. In September 2008 the Global Financial Crisis came to a head with the US government allowing the investment bank Lehman Brothers go bankrupt. Up to that point it was always assumed that the US government would bail out any bank that got into trouble, this was not the case and banks were now deemed ‘risky’ (Elliott, The Guardian, 2011).Governments all over the world scrambled to prop up their economy to ‘ride out the storm’. The Rudd governments First Home Buyers Boost was just one part of the economic stimulus package rolled out to hopefully reduce the chances of Australia facing the same fate that the United States of America did when the Global Financial Crisis hit. I will discuss the First Home Buyers Boost scheme that was implemented to encourage first home buyers into the housing market whilst we dealt with the Global Financial Crisis...
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...DEMAND AND SUPPLY FOR HOUSING The determination of prices in local and regional housing markets is a classic example of microeconomics in action! We are seeing the interaction between buyer and seller with prices being offered and agreed before a final transaction is made. In this section we focus on the demand and supply side factors that determine the value of properties in a market. Each housing transaction in the UK depends on a) The price that the seller is willing to agree for their property with the prospective buyer b) The actual price that the buyer is willing and able to pay. Buyers place offers for a property that the seller can either accept or reject A Sellers’ Market When the market demand for properties in a particular area is high and when there is a shortage of good quality properties (i.e. supply is scarce) then the balance of power in the market shifts towards the seller. This is because there is likely to be excess demand in the market for good properties. Sellers can wait for offers on their property to reach (or exceed) their minimum selling price. A Buyers’ Market Conversely when demand both for new and older housing is weak and when there is a glut of properties available on the market, then the power switches to potential buyers. They have a much wider choice of housing available and they should be able to negotiate a price that is lower than the published price. When the demand for houses in a particular area increases (perhaps because...
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...RESEARCH ARTICLE Huayi Yu China’s House Price: Affected by Economic Fundamentals or Real Estate Policy? © Higher Education Press and Springer-Verlag 2010 Abstract Many theory and empirical literature conclude that house price can reflect economic fundamentals in the long-term. However, by using China’s panel data of 35 main cities stretching from 1998 to 2007, we find that there is no stable relationship between house price and economic fundamentals. House price has deviated upward from the economic fundamentals since government started macro-control of the real estate market. We consider that the mechanism between the house price and economic fundamentals is distorted by China’s real estate policy, especially its land policy. Meanwhile the policy itself is an important factor in explaining the changes of China’s house price. Then we estimate the dynamic panel data model on house price and the variables which are controlled by real estate policy. The result shows: land supply has negative effects on house price; financial mortgages for real estate have positive effects on house price; and the area of housing sold and the area of vacant housing, which reflects the supply and demand of the housing market, has negative effects on house price. We also find some differences in house price influence factor between eastern and mid-western cities. Finally, we propose policy suggestions according to the empirical results. Keywords house price, economic fundamental, real estate policy...
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...India Cement Industry 4Q09 India: Cement covers the overview of the cement industry in India, risk factors, concern, cost structure, business characteristics, significant consolidations and market share of major cement producers. It also covers the demand cycle, demand drivers, cement consumption, installed capacity, production, demand-supply dynamics, regional disparity, exports, prices, Union Budget FY2007, market outlook, plus the profile, comparative matrix and SWOT analysis of the industry leading players: ACC Limited, UltraTech Cement Limited, Gujarat Ambuja Cements Limited, Grasim Industries Limited and India Cements Limited India is the second largest producer of cement in the world next to China. The cement industry contributes approximately 6% of the overall global production. This position has been achieved because of India’s sustained growth at an average rate of 8.1% per year between 1981 and 2008. The installed capacity of the industry was 198 million tonnes per annum in 2008. Meanwhile, domestic consumption and exports stood at 173 million tonnes and 6 million tonnes respectively in 2008. The cement consumption, on a conservative basis, is likely to go up to 225 million tonnes by 2010-2011. Outlook Key Positives | Key Negatives | Real estate & housing boom:Cement demand has picked up in the last few years owing to strong surge witnessed in the real estate and construction industry. Apart from this on going demand for housing has augured well for the cement...
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