Factors that affect the price elasticity of supply

Factors that affect the price elasticity of supply Price elasticity of supply is a useful concept when we consider supply. It is also use to measure the responsiveness supply to a change in price when we are supplying a good. Below is the formula that use to calculate the price elasticity of supply. Price elasticity of supply (PES) = % change in quantity supplied % change in price There are a few factors that affect the price elasticity of supply. The first factor that affects the determinants of price elasticity of supply is the number of producers. If there are a lot of producers, the easier for the industry to increase the output and cause the price increase. For example, according to the law of supply, the price of a good increase, the quantity supplied of the good increase. Thats why when there are a lot of producers, more goods will be produced and caused the price increase. Besides that, another factor that affects the price elasticity of supply is the time factor. Long run is usually more elastic for supply compare with short run. For example, in the long run period the industry can invest more equipment and build more factories. In addition, they can even enter a new market and start a bigger business. However, in the short run, industry cant extend their factory to produce more goods. Besides that, the prices of the goods are not responsive to the price. Therefore, supply is more elastic in the long run. Part B Businesses always use the concept price elasticity to decide on their pricing strategy. The strategy that used by the businesses to decide their price is price elasticity of demand (PED). Price elasticity of demand can be define as the measurement of the rate of response of quantity demanded due to a price change. There is a formula that uses to calculate the price elasticity of demand. The formula is shown in the figure below. The percentage change in price The percentage change in quantity demanded PED = There are many degrees that show in price elasticity of demand. Price elasticity of demand will normally be a negative relationship between quantity demanded. To determine the degree of PED, ignore the negative sign. The first degree that shows in PED is inelastic demand. This is a degree that show the percentage change in quantity demanded is less than the percentage change in price. For example, 20% decrease in price cause a 10% increase in quantity demanded. The value is less than 1 but greater than 0 (0

Economics of Organizations Essay

Introduction Coca-Cola is one of the world largest beverage companies in the world. The company offers its consumers with more than 500 sparkling and still brands.   The company is best known for its flagship invention of the product coca-cola which was invented in the in 1886 John stitch Pemberton. The management of the company has committed efforts toward ensuring that the company continues to offer quality products to its consumers. The company has managed to grow and expand where it now operates in over 200 countries worldwide with a customer base of approximately 1.7 billion. In this case the coca cola company mainly produces the syrup concentrate, which is later sold to the various bottlers company worldwide. The company has engaged into many corporate social responsibility projects globally (CSR).   The CSR projects are economically important to the company as they improve business relation between the management and the stakeholders.   The company has established numerous globalization policies which are in line with the company mission to refresh the world both in the body and in the spirit. In addition, the management of the company aims at ensuring that the company create value and make a difference everywhere they engage.   Most importantly, the company also aims at ensuring that they introduce brand that help to satisfy the needs of all people. The company has been one of the most prominent companies in the beverage industry worldwide. Corporate Social Responsibility Coca-Cola operates in more than 200 countries globally.   Ultimately, there is need for the company to engage in many activities which have economic benefit to the communities around their business. Ultimately, organizations are expected to observe economic components that are they should conduct their business in such a way that they are consistent maximizing earnings per share (Asongu 84). Coca-cola is not unexceptional, hence the company should determine perfectly how they conduct their business so that to remain in the competitive edge hence maximizing the amount of profits they make.   It is economically important to for companies in this sector should ensure that they maintain strong but health competitions for a common objective of the shareholders.   Evidently, the only possible means to maintain a healthy relationship with the stakeholders is by engaging them through corporate social responsibilities projects (Asongu 84).   In addition the company should be defined by its consistent profitability of its total output productivity. The objectives behind the coca-cola company engaging in Corporate Social Responsibility activities it to guarantee sustainability.   Basically, the company bases it operations on the business ethics such as initiating development projects, contribution to training, facilitating economic growth among others (In Idowu 201).   It is evident that is if a company is economically stable it offers many benefits to the shareholders and the larger country in general. For instance, if a company is economically stable it will employ people and it will greatly contribute towards building a stronger economical country.   Coca-cola Company is always keen to ensure it has followed the due process and theories concerning how it operates corporate social responsibility projects or activities. Ultimately, Social responsibility has four dimensions that the company should be socially responsible. These include, legal, economic, voluntary and ethical.   Coca-cola Company is more focused to create profits but should aims to ensure the wellbeing of the society at the same time ensuring the set laws and regulations by the legal systems. Voluntary responsibilities for a company entail the ability of companies to initiate programs and other activities that aims to ensure wellbeing of the surrounding community. In business context, companies which ensure ethics and social responsibility in all levels of their operations are likely to have better outcomes than those which do not ensure social responsibility and ethics. For many years now, coca-cola company has followed and maintained the basic economic rules governing the manner at which Corporate Social Responsibility is carried out.   Many of its activities and programs are long term which has the aim to affirm the sustainability of the company (Idowu & Leal 46).   Basically, the company has established many measures which ensure they are in line with the rules and model. Analysis of the company organizational structure and its modus operandi it is evident that the company has managed to achieve their objectives. This is because the despite the fact that the company is organized into several regions the top management has implemented control measure of ensuring that the company in all the regional groups produce the same brands. According to the report released in 2008 there is an indication that the company is performing stunningly in the corporate responsibility sector.   The most areas which the company performs perfectly are issues concerning water issues carbon dioxide emission and product packaging. Corporate responsibility or sustainability is the key factors for companies to achieve good productivity (Idowu & Leal 46).   Good ethics and social performance go hand in hand in ensuring that the company achieves good performance.   The fact that the company engages in many social corporate responsibility activity helps the company to enhance its brand image and reputation. Evidently, customers habitually are attracted to brands and companies having good reputations in corporate responsibility areas. The tables below show the performance of coca-cola in relation corporate social responsibility activities. In this context, the company uses appropriate social accounting procedures which help the company to handle properly all matters concerning accountability.   The company uses annual audits from credible firms and inspections to ensure success of these programs.   For instance the statistics indicates a positive growth in the green house project footprint. Ultimately, this project has many economic advantages to the people and world in general (Asongu 86). Reduction of green house gases helps to eliminate harmful gases which are the major threats to the economy of all countries in the world. As a matter of fact, Coca Cola Company appears to have good strategies which guarantee long term CSR programs irrespective of the mother country. Conclusion From the above discussion it is evident that, Coca-Cola operates in more than 200 countries globally.   Ultimately, there is need for the company to engage in many activities which have economic benefit to the communities around their business. The fact that the organization more than 500 sparkling and still brands gives it a better chance to engage in many activities which tend to benefit the society where they operate in.   These projects are economically important to both society in general and the company.   Basically, voluntary responsibilities for a company entail the ability of companies to initiate programs and other activities that aims to ensure wellbeing of the surrounding community. In business context, companies which ensure ethics and social responsibility in all levels of their operations are likely to have better outcomes than those which do not ensure social responsibility and ethics References Asongu, J.J. Strategic Corporate Social Responsibility in Practice. Lawrenceville, GA:   Ã‚   Greenview   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Publishing, 2007. Print. Idowu, Samuel O, and Filho W. Leal. Global Practices of Corporate Social Responsibility.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Berlin: Springer   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Berlin, 2008. Print. Idowu, Samuel O. Professionals Perspectives of Corporate Social Responsibility. , 2009. Print.

Financial Detective

professional users and sells them through its own technical representatives and mobile franchise dealers. The global manufacturer would be company L because they would have higher selling, general and administrative costs, in this case 38. 9 compared to 24. 8. The company with the specialized tools from mobile franchise would have higher cost of goods sold, in this case 61. 0 compared to 51. 6. Retail Both companies are large discount retailers. One company carries a wide variety of nationally advertised general merchandise.The other company is a rapidly growing chain of upscale discount stores and has partnerships with several leading designers. The company with partnerships with the designers is company M because it has intangibles of 9. 0 compared to the general merchandise discount company which has intangibles of 0. 6 making it company N. Newspapers One company is a diversified media company that generates most of its revenues through newspaper sales around the country and aroun d the world.The other company owns a number of newspapers in small communities and this company has significant goodwill on its balance sheet. Company O is the company that owns a number of newspapers as they have intangibles of 76,8 compared to company P, which is the world newspaper company and has intangibles of 37. 1. Health ProductsBeer ABCD Accounts Payable9. 82. 2Stockholders' Equity16. 572. 9 Inventory turnover3. 080. 93Current Assets11. 281. 7 Intangibles22. 246. 1Cost of Good Sold53. 938. 5 SG expense44. 546. 7Cash & ST investments1. 455. 6 SG expense17. 350. ComputersBooks & Music EFGH SG expense9. 723. 1SG expense16. 921. 8 Intangible Assets01. 2Depreciation1. 13. 7 Inventory21. 3Inventory14. 838. 6 Accounts Payable38. 318Cash & ST Investments54. 816. 2 Current Liabilities60. 933. 3Quick Ratio00. 46 Inventory Turnover13. 562. 42 PaperTools IJKL Intangibles14. 61. 9SG Expense3948. 4 Cost of Goods Sold6151. 6 Receivables Turnover18. 923. 7 RetailNewspaper MNOP Intangibles9 0. 6Intangibles76. 837. 1 Receivables Turnover24. 516. 7SG Expense2339. 7 Net Fixed Assets14. 134. 6 Stockholders' Equity62. 535. 5 Financial Detective professional users and sells them through its own technical representatives and mobile franchise dealers. The global manufacturer would be company L because they would have higher selling, general and administrative costs, in this case 38. 9 compared to 24. 8. The company with the specialized tools from mobile franchise would have higher cost of goods sold, in this case 61. 0 compared to 51. 6. Retail Both companies are large discount retailers. One company carries a wide variety of nationally advertised general merchandise.The other company is a rapidly growing chain of upscale discount stores and has partnerships with several leading designers. The company with partnerships with the designers is company M because it has intangibles of 9. 0 compared to the general merchandise discount company which has intangibles of 0. 6 making it company N. Newspapers One company is a diversified media company that generates most of its revenues through newspaper sales around the country and aroun d the world.The other company owns a number of newspapers in small communities and this company has significant goodwill on its balance sheet. Company O is the company that owns a number of newspapers as they have intangibles of 76,8 compared to company P, which is the world newspaper company and has intangibles of 37. 1. Health ProductsBeer ABCD Accounts Payable9. 82. 2Stockholders' Equity16. 572. 9 Inventory turnover3. 080. 93Current Assets11. 281. 7 Intangibles22. 246. 1Cost of Good Sold53. 938. 5 SG expense44. 546. 7Cash & ST investments1. 455. 6 SG expense17. 350. ComputersBooks & Music EFGH SG expense9. 723. 1SG expense16. 921. 8 Intangible Assets01. 2Depreciation1. 13. 7 Inventory21. 3Inventory14. 838. 6 Accounts Payable38. 318Cash & ST Investments54. 816. 2 Current Liabilities60. 933. 3Quick Ratio00. 46 Inventory Turnover13. 562. 42 PaperTools IJKL Intangibles14. 61. 9SG Expense3948. 4 Cost of Goods Sold6151. 6 Receivables Turnover18. 923. 7 RetailNewspaper MNOP Intangibles9 0. 6Intangibles76. 837. 1 Receivables Turnover24. 516. 7SG Expense2339. 7 Net Fixed Assets14. 134. 6 Stockholders' Equity62. 535. 5

Should Tobacco Free Campus Be Banned - 1759 Words

In the past 4 months, I have been walking through the Georgia State University courtyard to get to all my classes. Not once have I seen the courtyard not filled with students smoking tobacco. If the courtyard were to be described, it would be described as a cloud of smoke. Although, Calvin Warner states that the university code of conduct does set a rule stating that students are prohibited to smoke within 25 feet of all GSU buildings, and there are signs all over campus saying â€Å"Tobacco Free†, students are smoking right in front of the signs. Why are there tobacco free signs around campus, if the university itself is not? If we are a tobacco free campus, then why is the university not implementing it? Smokers on campus are leading nonsmokers into becoming secondhand smokers, which is as harmful as being the original smoker. Smoker or secondhand smoker, what is being harmed is the person’s health, which is affecting an individual’s ability to live a longer an d healthier life. It is absolutely great that the school is referring to itself as a tobacco free campus, but they do not seem to quite understand the meaning of it. It is understandable that there are many barriers to really implement this policy but it is not impossible. As many barriers there maybe, there are twice as many benefits. Georgia State University is claiming to be a tobacco free campus. However, they are not implementing to be tobacco free, which is affecting many people’s health indirectly. Why are theShow MoreRelatedSmoking on College Campuses1260 Words   |  6 Pagesenforce a tobacco free campus! (Daneman) Smoking is a choice made amongst an individual and falls within the first amendment in the constitution along with eight more! So how can we legally ban smoking from a whole college campus? In the end, the individual is going to do what he/she pleases if there is no enforcement. 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