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Toothpaste is never just toothpaste, a dress is never just a dress, a car is never just a car in those economies where consumers have demand for a variety of options and the ability to consume a selection of products and services. There are several economic principles at play including demand, customer satisfaction, consumer choices and the income effect.
Products in countries where the average consumer has minimal disposable income such as in 3rd world or emerging countries have demand curves with a small range of elasticity. Meaning the range in price a consumer is willing and able to pay for a particular product is relatively small. There simply is no incentive to provide products that consumers aren't wailing and able to pay for. In developed countries where consumers have a higher disposable income the demand for a variety of products and...
The elasticity of the demand curve for a product such as toothpaste is much wider; people are willing and able to pay for options even at a higher cost. Therefore, companies provide products in demand by consumers and the price of the products are determined by the intersection of the supply and demand curves.
Consumers aim to reach the highest possible point on the indifference curve to maximize total satisfaction. The greater the income the higher the indifference curve. Budget constraints are very minimal at this point, meaning that consumers can afford wider selection of products than those consumers with tighter budget constraints. This is why we see some very wealthy individuals with custom cars or very high-priced items not available to or affordable by most of the population. While its true a car that…
references and income allows her the ability to choose amongst a variety of options to maximize her total utility.
Would it be more efficient if there was just one choice and one price? Not necessarily. In economies where consumers have the willingness and ability to pay for variety such as the U.S., Great Britain and other strong economies where residents have disposable incomes; variety is king. While producing just one type of toothpaste or just one type of any consumer product would allow a manufacturer to achieve great economies of scale, efficiency is not the end goal. Serving society by providing them the variety of options that consumer demands is a goal that capitalist societies aspire to achieve. In countries where disposable incomes are higher enables the provision of greater choices at higher price points.
post, questions How categorize point view [e.g., -person, -person (i.e., "), -person limited, -person omniscient]? Is point view consistent story (told perspective), shift points narrative? (If, make note occur. The point-of-view of this rendition of "Little Red Riding Hood" could best be characterized as third-person omniscient. The narrator knows everything that is transpiring in the story as it happens, even though certain aspects of the tale (such as the fact
By federal law, all passenger airliners now feature cockpit doors that are locked by the pilots from inside the cockpit. Likewise, pilot training now includes the specific instructions not to open the door in response to any occurrence or emergency in the passenger cabin; instead, pilots are under instructions to land the aircraft immediately in response to any perceived emergency that would have previously been cause to investigate beyond
The boy just stood there staring at the pile of clothes and cat food and bows. I went over and asked him if I could do anything but he told me that he was used to it. I wasn't actually all that surprised by his answer. And so I ask myself: Which story of the family are these two telling themselves? Does the boy know that he is Horus and
Interrelationship of Self-Perceptions, Culturally-Based Perceptions, Impressions, and their effects on Leadership Abilities Humans have the most highly organized social structure of any creature on earth. In an attempt to ascertain our relative position in a complex social hierarchy, we constantly evaluate and re-evaluate ourselves. We do this by comparing ourselves to other human beings. We use this information to establish our opinions of ourselves, the various social groups to which we
Marketing Shampoo -- Selling sex with soap suds Shampoo's main function as a product may be to clean hair, but when it comes to advertising, no form of marketing succeeds more potently to sell this cleansing product to women than the marketing of feminine sex appeal. 'Buy the product, and be a sexy woman/girl.' This may not always come across as good clean fun in the eyes of the consumer, but,
Marketing Strategy of Wal-Mart Retail Chain: An Analysis Wal-Mart's history is an example of innovation, leadership and success in a company. It began as a single store in Rogers, Arkansas in 1962 and has become the world's largest retailer (Slater, 2003). Wal-Mart is often looked to as the industry trendsetter. The company enjoys annual revenues of over $100 billion, 3,200 stores and nearly one million employees around the world. Wal-Mart operates each