Demand Essays

_ocean Carriers_ Case

Assume that Ocean Carriers uses a 9% discount rate. 1) Do you expect daily spot hire rates to increase or decrease next year? (5 points) 2) What factors drive daily hire rates? (5 points) 3) How would you characterize the long-term prospects of the capesize dry bulk industry? (10 points) 4) Should Ms Linn purchase the $39M capsize? Make 2 different assumptions. First, assume that Ocean Carriers is a US firm subject to 35% taxation. Second, assume that Ocean Carriers…

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Price Elasticity of Demand

Supply and demand plays a vital role in the economy. Price is the central determinant of both the demand and supply, for example the higher the price of a good or a service the less the product is demanded. In circumstance where the price goes down, demand increases. The response of price and quantity demanded create an inverse relationship between the two. Whereas demand portrays the consumer decision making in purchases, supply is drawn on producer’s willingness to make profit…

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Appropriate Demand Function

Appropriate demand function for money balance is an issue that has brought great controversy among economists across the globe. However the whole controversy has over and over rotated around three major empirical problems. First, is the question of whether one should include time or savings deposits in money? Second is on what is the right constraint balances; should it be current income or wealth. Lastly, whether money balances is affected in anyway by interest rates and if at all they…

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Household Behavior and Demand

Household behavior is one of the any basic concepts in economics which has an effect on market trends. Household demand, for instance, can be seen as related to consumer choices in terms of which products are mostly bought in the market and which products need more supplies in terms of item production and its corresponding allocation. One of the many essential features of household demand is its corresponding effect on what is being provided in the market and, more importantly,…

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Increase and a Decrease in Supply and Demand

A free market economy is an idealized form of a market economy in which buyers and sellers are permitted to carry out transactions based solely on mutual agreement without interventionism in the form of taxes, subsidies, regulation of government provision of goods and services. In this type of economy, all decisions are made by individuals and firms. The economy is in equilibrium when income equals output equals expenditure or simply, Injections equal Leakages. On a chart this is represented when…

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Demand and Supply

Demand is defined as the amount of goods and services that buyers need in the market. The law of demand states that the higher the price of goods or services in the market the lower the demand when all factors are kept constant. Under natural condition, buyers will buy that product whose price will not force them to forgo another more valuable product. The interaction of price and demand is called demand relationship In graph above represents of the quantity…

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