The Law of Demand and Demand Factors

Introduction People often exercise choice because human wants are infinite while the resources available are scarce. For the satisfaction of human wants to occur, there must be a relationship between the production of commodities and their corresponding pricing system. In the market, the forces of demand and supply determine the prices of goods and services.Advertising We will write a custom essay sample on The Law of Demand and Demand Factors specifically for you for only $16.05 $11/page Learn More At the same time, the prices of goods and services affects demand and supply (Suri, 2011). In ordinary terms, demand refers to desire or urge of purchasing commodities. In economic terms however, demand is something beyond a plain desire. Demand in this sense represents a want supported by the power or capability to purchase. The Law of demand The law of demand asserts that all other factors kept constant, the price and quantity demanded are inversely proport ional. For instance, a company selling snacks may sell approximately 100,000 cookies at $1 each. If the company decreases the price of its cookies to $0.75 each, the number of cookies sold may increase to 115,000. On the other hand, if the company decides to increase the price per cookies to $1.25, the number of cookies sold may reduce to approximately 85,000. This can only apply when all other factors like customer preference are constant (Saint-Leger, 2011). In this regard, there are various assumptions made in relation to the law of demand for the establishment of the price-demand relationship. These assumptions include assuming that the income of consumers does not change, there are no changes in preferences and tastes of consumers, prices of other goods remain constant and there are no changes in the size and composition of the consumer population (Akrani, 2009). A demand curve clearly represents the effect of price on the quantity of goods and services demanded. In the demand curve, the quantity demanded lies on the horizontal axis while the price lies on the vertical axis. Any change in the price causes a shift along the demand curve. However, there are other factors that can cause a shift in the demand curve other than price. These may include price alterations for complement goods, consumer demand for alternate goods and customer preferences (Saint-Leger, 2011). Even though it is evident that quantity demanded changes as price of commodities changes, such a change varies from commodity to commodity. This means that the amount of change is not constant for all commodities.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More In this case, some goods and services respond more to changes in price while others respond less. Elasticity of demand explains the extent of the responsiveness of quantity demanded in relation to changes in price. This means that the elasticit y of demand explains further the relationship of price and demand (Akrani, 2009). Factors affecting the demand of commodities There are various factors that affect the demand of goods and services. The major factor is price of goods and services. In most cases, the quantity of a product purchased by a customer depends on the price of that particular commodity. In this case, people are less willing to purchase a commodity when the price of such a commodity increases. On the other hand, customers will purchase a certain commodity in large volumes if the price of the commodity reduces (Sothern, 2011). Another factor that influences the demand of commodities is of the size of the income of customers. In general, consumers will buy more when their income increases and buy less when their income reduces. As the income of some people increase, their consumption increase causing an increase in the demand for various commodities. For the goods which are superior and of good quality, the incr ease in income causes increase in their demand. On the other hand, demand for inferior goods reduces with increase in income levels (Suri, 2011). The number of buyers at a specific time also influences the demand for goods and services. For instance, the demand for stationery increases during the periods when the schools are opening. In addition, there is an increased demand for clothes and playing dolls for children during the holidays especially the Christmas period. The demand for these goods however reduces when the holidays are over (Sothern, 2011). The black Friday is a very important day in America, which influences the demand for commodities. Economists site this day as the most important day of the year for the economy of United States. During this day, Americans flock in the shopping malls to purchase items and commodities for the Christmas celebrations. During this time, the demand for various commodities like electronics, children playing items and clothes increase heavi ly. In addition, most traders reduce the prices of some commodities during this day causing the demand to increase further. According a survey by the National Retail Federation (NRF), some 152 million people purchase heavily discounted commodities during this day (Washington, 2011). Conclusion The law of demand is an important concept in economics. It explains the relationship between the quantity of goods and services demanded and other factors including price, preferences, income and number of buyers. Business owners and companies should take time to understand the law of demand and comprehend the various factors that may increase demand for their products.Advertising We will write a custom essay sample on The Law of Demand and Demand Factors specifically for you for only $16.05 $11/page Learn More This will help them to maximize their sales since they will perfectly understand the market during specific periods. The understanding of the law of demand is also useful in determining the quantity of supply needed for a particular commodity. References Akrani, G. (2009). Demand in Economics: Law of Demand and Elasticity of Demand. Web. Saint-Leger, R. (2011). The Determinants of Demand That Will Shift the Demand Curve. Web. Sothern, M. (2011). What Are the Factors Affecting Demand Economics?  Web. Suri, S. (2011). Seven Factors that influences the Demand for a Commodity. Web. Washington, J. S. (2011). Black Friday: Most important day of the year for the US economy. Web. 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I Miss Not Seeing You

I Miss Not Seeing You I Miss Not Seeing You I Miss Not Seeing You By Guest Author This is a guest post by Julie Link. If you want to write for Daily Writing Tips check the guidelines here. â€Å"I love France,† my friend sighed, and I nodded my agreement. â€Å"I miss not being there,† she added. Huh? My commiseration over lost croissants gave way to puzzlement over this odd expression. You love it, but you regret not being absent from it? A quick perusal of the internet yielded more instances of the erroneous idiom. A headline on .OhGizmo.com laments, â€Å"Goodbye, F-117A. We’ll Miss Not Seeing You.† A query posted on WikiAnswers.com asks â€Å"How do you say i miss not seeing you in french† [sic]? Dictionary.com defines the verb â€Å"to miss† as â€Å"to regret the absence or loss of: I miss you all dreadfully.† The definition makes clear that what my friend missed was being in France rather than not being in France. How did â€Å"I miss being there† morph into â€Å"I miss not being there†? I’ve never seen the expression misused when the object of the verb is a person or a thing. Does anyone say â€Å"I miss not my mom?† (Well, perhaps, but that’s a topic for another day.) No, we all understand that that when we miss something or someone, we regret its absence or loss. We miss the warmth of summer, Gran’s apple pie, or a dear friend. The problem occurs only when what is missed is an action: â€Å"I miss seeing you,† â€Å"The children miss playing at the beach,† or â€Å"Nana misses rocking her grandbabies.† Perhaps the error derives from trying to emphasize the regret. Doesn’t not rocking the babies sound sadder than rocking them? But to add the word â€Å"not† is to create a double negative. Parsing my friend’s remark, for example, would suggest that what she regrets is being in France; that was not what she intended to convey. The definition of â€Å"miss† already denotes a negative- the absence or loss of something- so the addition of the word â€Å"not† negates the loss and creates, if not an arithmetic positive, then at least a grammatical confusion. Why this simple expression, so easily grasped that children use it comfortably, becomes so slippery when a few words are added is difficult to explain. An understanding of grammar is helpful; diagramming the sentence (Does anyone do that nowadays?) would demonstrate that whether what is being missed is a person, a thing, or an action, the structure of the phrase does not change. Rather than exposit the grammatical technicalities of gerunds and direct objects, I think I’ll cogitate over a croissant. The only problem is that I miss not counting calories. About the Author: Julie Link is an experienced editor and avid lexiphile who loves reading and writing about language and grammar. She may be contacted at julieolink@yahoo.com. Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Misused Words category, check our popular posts, or choose a related post below:7 Examples of Passive Voice (And How To Fix Them)15 Types of DocumentsHow to Send Tactful Emails from a Technical Support Desk

Should Red Bull keep on investing in the Formula 1 Championship for Essay

Should Red Bull keep on investing in the Formula 1 Championship for next year - Essay Example The increasing trend of marketing through sponsorships of events is visible to everyone. Around 15 years ago less than 25 percent of events had some sort of corporate support and involvement but today this percentage has increased to 80 percent (McDowell, 1999). These events are an easy way through which an organization can communicate their messages to the customers. Red Bull is a soft drink company that is using sponsorships as a way to market its soft drink. Red Bull sponsors Formula 1 racing events all over the world. They also have many sports teams that take part in sporting events. Red Bull Racing is a Formula 1 racing team that is owned by Red Bull. The company also owns another racing team in Formula 1 known as Scuderia Toro Rosso (Formula 1.com, 2008). The company also sponsors other extreme sport like snowboarding and wakeboarding. The marketing technique of Red Bull is well known and it is known to work for the company. Associating the brand with extreme sports also commu nicates a brand image of the product to the consumers. This is one great advantage of sponsorships of events. Sponsorships of events actually communicate with consumers in a better way than conventional marketing (Meenaghan, 1991). Therefore the efficacy of marketing through sponsorships of events is well established.... It is vital to find the efficacy of this marketing technique in times of financial crisis. This is the main problem that we will attempt to solve. The topic of this research proposal is that whether Red Bull should continue to invest in Formula 1 championships or not in the next year that is 2012. This investment includes the sponsorships of the event and the racing teams of the company. This research proposal will identify the process in which the answer to the above question will be obtained. Aims and objective of the research alongside with a comprehensive literature review on the subject of marketing through sponsorship will be presented. Research methodology will also be discussed in the proposal. Aims and Objective Research Topic The Marketing of Red Bull through sponsorships of sports events like Formula 1 Business Question Should Red Bull continue to invest in Formula 1 championship in the next year? Aim The aim is to help Red Bull make a decision about its marketing techniqu es in the wake of the financial crisis the world is facing today. Objectives 1) To understand what marketing through sponsorships of event it and its importance 2) To seek the economic worth of sponsorship marketing 3) To evaluate the benefit of sponsorships for Red Bull 4) To gain insight on the effect of Formula 1 Championship on brand awareness of Red Bull by collecting responses from customers Literature Review Marketing through Sponsorships Different marketing techniques have been developed over the years and all of them aim at better communication with the target audience. Sponsorship is a way through which a product can be marketed to the customers. Research has suggested that sponsorships do help a product achieve competitive advantage over