Elasticity and consumer choice theories

at
Categories
Tags

 

 

 

Do the elasticity and consumer choice theories apply to the current coronavirus-impacted market for products? How so?

On weeks 7 and 8 share with us how you believe (via observation, reading or news) evidences of price, income and cross elasticities of demand and elasticity of supply in markets. Wherever possible see if you can also show the impact of the Covid19 upon consumer and producer behavior in terms of elasticities of demand and supply and when possible, also consumer utilities and consumer and producer surplus. Share examples of what has happened. Write like you know microeconomics. Add the economic terminologies that you have learned in this class into your main post and response/s, wherever you can. See if you are able relate the post-pandemic prices of specific goods and services to elasticities of demand and supply.
You only need to apply one or two of the concepts listed below from chapters 5 and 6 to a real world situation that someone else has not already posted on the discussion board. Please don’t confuse “determinants of ELASTICITY” with determinants of demand.
Chapter 5: Here are some elasticity terminologies that you can apply: 1) price elastic or price inelastic demand, 2) what caused the high or the low price elasticity of demand (determinants of elasticity), 3) elasticity and revenue, 4) price elasticity and burden of tax, 5) income elasticity, 6) cross elasticity between two products, 7) elasticity of supply.
Chapter 6: 1) Diminishing marginal utility 2) the concepts of consumer or producer surplus and 3) deadweight loss

 

 

SAMPLE SOLUTION

The company operates in 100 states and employ over 52,000 people around the world. The company main office in Oman is located in Al Azaibah, Weatherford also has other branches around Oman in different regions for example Nizwa, and Gahl

Weatherford�s mission is to be one of the preferred and best companies in a wide range of oilfield services and products as well as technologies that help the customers produce oil more efficiently and conveniently. By providing all the important and useful requirement that the client need for long and short term.
Moreover, operators always seek for new techniques to extend the economic lives of the reservoir also a safe way to solve various challenges connected to aging well, where Weatherford Company offers all the Innovative technology and high quality services to confront these challenges.
Weatherford Provides different services in drilling and formation evaluation, well construction, completion and stimulation, also production.
To begin with drilling services and formation evaluation, which contain different categories, for example laboratory services, reservoir solutions, surface logging system, and wireline services.
Having considered the services provided by the company, it is also reasonable to look at the different categories and their definitions, start with the first category laboratory services.
Weatherford laboratories deliver a set of basic core analysis services with a whole necessity test required to help the costumer more in improving reservoir estimates, recover their reservoir forming, also identify and correct any damage to the formation of the reservoir.

Moreover the advanced tests provided by the Weatherford labs are particularly designed to evaluate different properties such as Petrophysics, Fluid Flow Properties, Rock Mechanics, Enhanced Oil Recovery, and others.
The second category is about reservoir solutions, this category generally discuss about the oilfield challenges and the solution that the company offer to the clients for several difficulties that the operators faced.
Coming to third category surface logging system, is mostly talking about the extraction of fluids from the underground and determining the amount of sufficient gases present in the reservoir by means of specific measurements and Techniques. Inadequate fluid extraction or using unsuitable devices can cause an error in the measurements also reduce the accuracy of the analysis.
Nevertheless, Weatherford Company also offers to the operator�s wireline services, the wireline services include all the advance and important information about the well. Likewise wireline fulfil all the client needs with unequalled flexibility and with integrated strategic wireline technologies, tools, and syste
In addition, completion and stimulation is also one of the essential services provided by Weatherford Company. To achieve a high quality production of the well it is important to perform critical treatments and upgrades efficiently. This requires a careful preparation and extensive capability.
Consequently, Weatherford delivers a complete facilities, breadth, and experience in multi subjects whether on the surface or down the well, in laboratories or factories. The company focus is to deliver a high quality services in the industry.

This question has been answered.

Get Answer