Price Elasticity

at
Categories
Tags

 

The Tariff, the Price Elasticity of Demand and the Impact on Company Profits

Here is some help with elasticity. https://cdnapisec.kaltura.com/index.php/extwidget/preview/partner_id/956951/uiconf_id/38285871/entry_id/1_f4j9no40/embed/dynamic

In this week’s discussion, you are going to be the CEO of a company. In anticipation of the upcoming quarterly disclosure of profits, you prepare your Board of Directors for the challenge that US Tariffs on Chinese Imports is having on profits. Please make yourself the CEO of only one of these hypothetical companies.

‘Tis the Season- ‘Tis the season is one of the largest importers of holiday decorations and the summer quarter is devoted to importing decorations such as lighting, artificial trees, table runners, outdoor yard decorations all of which have to be ready to ship by early fall. In fact we at ‘Tis the Season has a highly inelastic supply curve, they ramp up to produce decorations for each season and then once that season has been shipped they move on to the next season. Fortunately, the price elasticity of demand for almost all of your products is 0.19.

We Build Big – We Build Big is one of the largest developers of a residential structure in the US. We Build Big, builds everything from apartment complexes to new single-family homes. Critical materials such as lumber, gypsum board, fabricate metal etc are largely imported. We Build Big know that our production process, the supply curve, is relatively inelastic. The concern over profits is that the price elasticity of demand for housing is 1.0.

Very Big US Auto – Very Big US Auto is one of the oldest and one of the largest auto manufacturers of auto in the US. Very Big US Auto’s supply chain is highly dependent components manufactured in China and assembled in the US. Very Big US Auto knows that the price elasticity of supply is relatively inelastic and that then the price elasticity of demand which is1.2.

Now explain:

Is the demand curve for your product relatively elastic, inelastic or unitary elastic? Demonstrate for your company’s product, by how much the quantity demanded will change if you pass on the 25% increase in cost from the tariff as a price increase for your product. In other words, show your calculation of the percentage change in the quantity demanded given a 25% change in the price.
Given your company’s price elasticity of supply and price elasticity of demand prepare a statement for your board as to the potential impact of profits. Who will pay the larger share of the tariff, your firm or your customers?
NOTE THERE IS NO WAY AROUND IT, YOUR RESPONSE MUST INCLUDE A CALCULATION. DR. ISLEY COVERS THE CALCULATION IN HER LIVE SESSION.

PLEASE DO NOT RELY ON WIKIPEDIA, INVESTOPEDIA OR ANY OTHER PEDIA AS A REFERENCE AT any time IN THIS COURSE.

https://cdnapisec.kaltura.com/index.php/extwidget/…

 

In any case, what we don’t understand is that our disappointments are what pushes us ahead. We just need to gain from our mix-ups and proceed with our excursion. Since with a genuine dream, it is about the excursion, not about our goal. A few of us simply don’t completely put stock in ourselves for the fantasy to turn into a reality. The individuals caught in a fixed attitude are found they set disillusionment when admiring their objectives. Their lower confidence keeps them from succeeding – or in any event, attempting – in anything. They follow the strides of the ‘failures’, ‘I discuss dreams, Which are the offspring of an inactive mind, Begot of only vain dream.’ (Shakespeare) In their viewpoint, a fantasy is a bad dream, something not worth working for.

We as a whole let things impede genuine dream being satisfied now and again, however in the event that the craving is something you truly need, you would effectively be fruitful. Colin Powell once reassuringly directed, ‘A fantasy doesn’t turn into a reality through enchantment; it takes sweat, assurance, and hard work,'(1967) and a few of us don’t have the foggiest idea about the genuine meaning of assurance. We anticipate that things should consequently be finished. In any case, we need to win the odds, the chances and the positive conditions.

Dreams cut out open doors for us all. It will persuade us and consistently be the straight way to our life course. These unlimited objectives help our certainty. Following dreams spells SUCCESS over our temples. Furthermore, a fantasy can’t be without a goal. Prophet Muhammad is one of the best individuals in history in light of the fact that, ‘ he was the main man in history who was especially effective on both the strict and common levels’ (Hart). At the end of the day, he followed a way, defeated all hindrances, and got prosperous. He followed his fantasy. My dad propelled himself harder, until he arrived at his own end goal. Furthermore, I also will keep on building my extension out of my own precious stone and graphene.

About Essay Sauce

…(download the remainder of the exposition above)

13.

This page of the exposition has 6459 words. Download t

This question has been answered.

Get Answer