Microl8 Essay Example | Topics and Well Written Essays - 1250 words

Microl8 - Essay Example (c) The slope of demand function is – 2. It tells that with the increase in quantity demanded by 1 unit, price of that good or service decreases by $2 (or 2 currency units). (d) The slope of supply function is 1. It tells that with the increase in quantity supplied by 1 unit, price of that good or service increases by $1 (or 1 currency unit). ... That’s why any change in prices of food is prominent and significant for them, which makes their food demand flexible in response to its price changes; i.e. with the changes in price, they vary their food consumption accordingly. However, U.S. is a high-income country. Its consumption is diversely distributed to variety of luxury goods in addition to the necessity goods. Thus, food consumption of American people comprises of a smaller portion of their income; in fact it is much smaller if compared with a low-income country as Tanzania. That’s why any change in food prices is not so observed by them which makes their food demand almost irresponsive to price. In short, high elasticity of food demand in Tanzania imply higher level of its foods purchases as compared to that in U.S. where food purchases are not so higher as compared to the purchases of other goods – luxury goods (Parkin n.d., p. 95). Taxes S’ (= S+T) P S D Q With the imposition of tax, supply c urve shifts left as tax serves as increasing cost of production for producers. Now, the price paid by the consumer (PD) is not the same as that received by the supplier (PS) as the difference is to be paid as a tax; there would be no equilibrium now (The Impact of an Excise Tax or Subsidy on Price n.d.). It can be illustrated here in the graph that since the customer has to pay more price than before and since suppliers cost increases due to the tax, the market price would be increased and due to the increase in price, there would be leftward movement along the demand curve and thus the quantity demanded would be decreased. (a) Tax revenue would be greater from the good for which price increase would not much

Strategic Management Assignment Example | Topics and Well Written Essays - 2000 words - 3

Strategic Management - Assignment Example According to that organization forms its strategies to get benefit of opportunities or to handle industrial or environmental problem. Strategies of business focus on diversified ways to achieve success. Environmental analysis establishes a linkage between business and its operating environment. Various socio economic and sustainable issues are highlighted in this analysis. In this case study three important framework are used to explain importance of environmental analysis in growth and success of organization. External environmental analysis gives a detail idea about industry. There are some major forces which controls and influence the entire business environment of a country. In this case study environmental analysis of United Kingdom is done. Explaining and analysing various factors of environment organization develop its future actions and events. This analysis also gives information about other players present in the market. The companies form a clear idea about existing compet ition and its competitive position in the market. This framework analysis highlights unpredictable and important environmental factors of UK market. PESTEL analysis explains six macro level environmental factors. These factors play a vital role in affecting business decisions of a company. Political: UK has many political rules and regulations which affects the establishment of business strategies. UK government has imposed several laws and regulations regarding retail management and its waste disposal. Wide range political factors affect Tesco’s operation and business process. Different types of taxes are levied by UK government on the business activities of Retail Company. For example Tesco have given many taxes for conducting its business operations (Meckel 79). Tesco forms strategies to reduce its tax burden in its operating market. The government of this country also encourages the retail company to develop and expand its business