Shifts in Demand and Supply for Goods and Services

Shifts in Demand and Supply for Goods and Services tài liệu, giáo án, bài giảng , luận văn, luận án, đồ án, bài tập lớn...

THE WILLIAM DAVIDSON INSTITUTE AT THE UNIVERSITY OF MICHIGAN BUSINESS SCHOOL POLICY REGIME CHANGE AND CORPORATE CREDIT IN BULGARIA: ASYMMETRIC SUPPLY AND DEMAND RESPONSES By: Rumen Dobrinsky and Nikolay Markov William Davidson Institute Working Paper Number 607 September 2003 POLICY REGIME CHANGE AND CORPORATE CREDIT IN BULGARIA: ASYMMETRIC SUPPLY AND DEMAND RESPONSES * Rumen Dobrinsky a and Nikolay Markov b a UN Economic Commission for Europe; Palais des Nations, CH-1211 Geneva, Switzerland tel. (+41 22) 917 2487; fax: (+41 22) 917 0309; e-mail: rumen.dobrinsky@unece.org b Centre for Economic and Strategic Research; 3 akad. Nikola Obreshkov street, apt. 1; Sofia-1113, Bulgaria, tel./fax: (+359 2) 971 3267; 973 2905; e-mail: nmarkov@mail.ibn.bg * The Centre for Economic and Strategic Research gratefully acknowledges financial support for this research from the European Commission (PHARE-ACE project P98-1125-R) and from the CERGE-EI Foundation (under a program of the Global Development Network, 2002). The views expressed in this paper are those of the authors and not necessarily of the organizations they are affiliated with. POLICY REGIME CHANGE AND CORPORATE CREDIT IN BULGARIA: ASYMMETRIC SUPPLY AND DEMAND RESPONSES ABSTRACT The paper seeks to assess how a major policy regime change – such as the introduction of the currency board in Bulgaria – affects the flow of bank credit to the corporate sector. An attempt is made to identify the determinants of corporate credit separately from the viewpoint of lenders and borrowers. The estimated credit supply and credit demand equations provide empirical evidence of important changes in microeconomic behavioral patterns which can be associated with the policy regime change. The results also suggest a considerable asymmetry in the response of credit supply and credit demand to the policy shock: while the supply shifts were quite pronounced, the patterns of firms’ credit demand remained fairly stable. The policy implications of the detected asymmetry in microeconomic adjustment are also discussed in the paper. Keywords: corporate credit, credit supply and credit demand, regime change, currency board, transition economy JEL classification numbers: G21, G32, G38 1 POLICY REGIME CHANGE AND CORPORATE CREDIT IN BULGARIA: ASYMMETRIC SUPPLY AND DEMAND RESPONSES 1. Introduction Bulgaria’s difficult transition from plan to market was marked by persistent macroeconomic and financial instability leading to a major economic collapse in 1996-1997. In 1997 a currency board arrangement (CBA) was established as a “policy of last resort” with the aim to impose fiscal and financial discipline. The change in the monetary regime was accompanied by a comprehensive package of policy reforms affecting not only the macroeconomic but also the institutional environment and the functioning of the financial system. In particular, the norms of prudential bank lending and bank supervision were tightened considerably; at the same time bankruptcy procedures were simplified and streamlined. All in all this amounted to a major policy regime change, in fact, the most important policy shift Shifts in Demand and Supply for Goods and Services Shifts in Demand and Supply for Goods and Services By: OpenStaxCollege The previous module explored how price affects the quantity demanded and the quantity supplied The result was the demand curve and the supply curve Price, however, is not the only thing that influences demand Nor is it the only thing that influences supply For example, how is demand for vegetarian food affected if, say, health concerns cause more consumers to avoid eating meat? Or how is the supply of diamonds affected if diamond producers discover several new diamond mines? What are the major factors, in addition to the price, that influence demand or supply? Visit this website to read a brief note on how marketing strategies can influence supply and demand of products What Factors Affect Demand? We defined demand as the amount of some product a consumer is willing and able to purchase at each price That suggests at least two factors in addition to price that affect demand Willingness to purchase suggests a desire, based on what economists call tastes and preferences If you neither need nor want something, you will not buy it Ability to purchase suggests that income is important Professors are usually able to afford better housing and transportation than students, because they have more income Prices of related goods can affect demand also If you need a new car, the price of a Honda may affect your demand for a Ford Finally, the size or composition of the population can affect demand The more children a family has, the greater their demand for clothing 1/18 Shifts in Demand and Supply for Goods and Services The more driving-age children a family has, the greater their demand for car insurance, and the less for diapers and baby formula These factors matter both for demand by an individual and demand by the market as a whole Exactly how these various factors affect demand, and how we show the effects graphically? To answer those questions, we need the ceteris paribus assumption The Ceteris Paribus Assumption A demand curve or a supply curve is a relationship between two, and only two, variables: quantity on the horizontal axis and price on the vertical axis The assumption behind a demand curve or a supply curve is that no relevant economic factors, other than the product’s price, are changing Economists call this assumption ceteris paribus, a Latin phrase meaning “other things being equal.” Any given demand or supply curve is based on the ceteris paribus assumption that all else is held equal A demand curve or a supply curve is a relationship between two, and only two, variables when all other variables are kept constant If all else is not held equal, then the laws of supply and demand will not necessarily hold, as the following Clear It Up feature shows When does ceteris paribus apply? Ceteris paribus is typically applied when we look at how changes in price affect demand or supply, but ceteris paribus can be applied more generally In the real world, demand and supply depend on more factors than just price For example, a consumer’s demand depends on income and a producer’s supply depends on the cost of producing the product How can we analyze the effect on demand or supply if multiple factors are changing at the same time—say price rises and income falls? The answer is that we examine the changes one at a time, assuming the other factors are held constant For example, we can say that an increase in the price reduces the amount consumers will buy (assuming income, and anything else that affects demand, is unchanged) Additionally, a decrease in income reduces the amount consumers can afford to buy (assuming price, and anything else that affects demand, is unchanged) This is what the ceteris paribus assumption really means In this particular case, after we analyze each factor separately, we can combine the results The amount consumers buy falls for two reasons: first because of the higher price and second because of the lower income How Does Income Affect Demand? Let’s use income as an example of how factors other than price affect demand [link] shows the initial demand for automobiles as D0 At point Q, for example, if the price is $20,000 per car, the quantity of cars demanded is 18 million D0 also shows how the quantity of cars demanded would change as a result of a higher or lower price For 2/18 Shifts in Demand and Supply for Goods and Services example, if the price of a car rose to $22,000, the quantity demanded would decrease to 17 million, at point R The original demand curve D0, like every demand curve, is based on the ceteris paribus assumption that no other economically relevant factors change Now imagine that the economy expands in a way that raises the incomes of many people, making cars more affordable How will this affect demand? How can we show this graphically? Return to [link] The price of cars is still $20,000, but with higher incomes, the quantity demanded has now ...BioMed Central Page 1 of 3 (page number not for citation purposes) Implementation Science Open Access Short report Circumcision for prevention against HIV: marked seasonal variation in demand and potential public sector readiness in Soweto, South Africa Guy de Bruyn* 1 , Martin D Smith 2 , Glenda E Gray 1 , James A McIntyre 1 , Russell Wesson 2 , Gary Dos Passos 2 and Neil A Martinson 1,3 Address: 1 Perinatal HIV Research Unit, University of the Witwatersrand, Johannesburg, South Africa, 2 Department of Surgery, Chris Hani Baragwanath Hospital, and University of the Witwatersrand, Johannesburg, South Africa and 3 School of Medicine, Johns Hopkins University, Baltimore, MD, USA Email: Guy de Bruyn* - debruyng@hivsa.com; Martin D Smith - smithmd@medicine.wits.ac.za; Glenda E Gray - gray@pixie.co.za; James A McIntyre - mcintyre@pixie.co.za; Russell Wesson - russwess@gmail.com; Gary Dos Passos - gdospassos@aol.com; Neil A Martinson - martinson@hivsa.com * Corresponding author Abstract The public sector delivery of male circumcision in the only public sector hospital in Soweto, South Africa was examined to gauge local capacity to deliver this procedure as an intervention for prevention of HIV acquisition. During the period from July 1998 to March 2006, approximately 360 procedures were performed per annum. Striking seasonal variations and the relatively few procedures performed may create challenges for program planning, if male circumcision is increased to a level required to have an impact on the incidence of HIV among this population. Findings A recently completed randomized controlled trial of male circumcision (MC) for the prevention of HIV acquisition demonstrated that MC reduces the risk of HIV infection [1], confirming similar findings from many prior observa- tional studies [2]. At the efficacy and cost of the procedure reported in the trial, MC may be cost-saving as a public health intervention [3]. These findings add to the options for personal prevention of HIV acquisition, and support the addition of MC as a component of prevention pro- grams in countries with a high prevalence of HIV. In the absence of UNAIDS endorsement to back policy and pro- gram development [4], implementation issues need to be debated. However, to have an impact, a large proportion of the male population would have to be circumcised. Indeed, this conclusion is supported by epidemic modeling for the population of Soweto [5], and at a country level in South Africa [6]. The current live male birth cohort in Soweto numbers approximately 15,000 per year (J. McIn- tyre, personal communication). The prevalence of MC is estimated to be between 20% and 35%, based on surveys in communities within 100 km of Soweto [7,8]. Popula- tion coverage of 60% of males within a birth cohort, with- out expanding to other uncircumcised men, would require at least 8,000 procedures per year. Additionally, MC appears to be acceptable to the majority of uncircum- cised men in this area, if found to be beneficial in the pre- vention of HIV/STI's [7,8]. Partner preferences are commonly cited as a reason for adult men undergoing the procedure, because women find it acceptable as well. Published: 25 January 2007 Implementation Science 2007, 2:2 doi:10.1186/1748-5908-2-2 Received: 24 August 2006 Accepted: 25 January 2007 This article is available from: http://www.implementationscience.com/content/2/1/2 © 2007 de Bruyn et al; licensee BioMed Central Ltd. This is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/2.0 ), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. Implementation Science 2007, 2:2 http://www.implementationscience.com/content/2/1/2 Page 2 of 3 (page number not for citation purposes) Furthermore, South African investigators will soon initiate clinical research studies in HIV prevention, Supply on demand Adapting to change in consumption and delivery models Sponsored by A report from the Economist Intelligence Unit Supply on demand Adapting to change in consumption and delivery models Contents About the report Executive summary Consumers want convenience and value, and they want it now Reasons to be cheerful What is cheap, reliable and everywhere? 11 Growing pains 14 Conclusion 16 Appendix: survey results 17 © The Economist Intelligence Unit Limited 2013 Supply on demand Adapting to change in consumption and delivery models About the report Supply on demand: Adapting to change in consumption and delivery models is an Economist Intelligence Unit (EIU) report sponsored by Zuora It delves into the shifting attitudes among business executives towards new consumption and delivery models, the drivers of change, and how companies are adapting to accommodate the trend l Thomas Amos, co-founder, Sidekicker To shed light on this topic, the EIU surveyed 293 business executives in July-August 2013 Nearly two-fifths of the survey sample (39%) are based in the US, 31% in the UK and 30% in Australia They hail from 18 sectors, with financial services, professional services, technology, and healthcare, pharmaceuticals and biotechnology especially prominent in the sample The respondents are relatively senior—61% hold C-suite positions—and they work in organisations of different sizes, with 54% posting annual revenue of US$500m or more l Saar Gillai, senior VP and general manager, HP Converged Cloud To complement the survey findings, the EIU also conducted in-depth interviews with senior executives and industry experts We would like to thank all survey respondents, as well as the following executives (listed alphabetically) for their time and insights: © The Economist Intelligence Unit Limited 2013 l Giles Andrews, CEO, Zopa l James Beshara, founder, Crowdtilt l John Compton, manager, Streetclub by B&Q (Kingfisher) l Chris Fletcher, research director, Gartner l Ed Lee, mayor, San Francisco l Ann Mack, director of Trendspotting, JWT Worldwide l Paul Marsden, consumer psychologist l John Mewett, marketing director, Screwfix (Kingfisher) l Mark Norman, CEO, Zipcar (Avis) l Aleyn Smith-Gillespie, associate director, Carbon Trust Advisory Services The report was written by Sarah Fister Gale and edited by Zoe Tabary of the Economist Intelligence Unit Supply on demand Adapting to change in consumption and delivery models Executive summary Under the impact of advances in technology, economic pressures and shifting cultural norms, consumers are looking for cheaper goods and more convenient ways of accessing them New models of personal ownership are gaining attention in many industries based on the idea that people are increasingly interested in consuming and paying for temporary or limited access to goods and services, rather than purchasing them outright Judging by this Economist Intelligence Unit survey, businesses are responding by changing how they price and deliver goods and services, with subscription-based models in which companies offer ongoing access to a product or service for a periodic fee; rental models that give consumers temporary use of a product or service; and sharing models that allow groups of people to jointly share ownership of a product or service among the preferred options Advances in technology are enabling this trend, both by giving consumers greater insight into where and how they can access products and services, and by allowing businesses to rapidly ramp up new sales models at relatively low costs Businesses believe that these new models will enable new revenue opportunities, better differentiation from competitors, and access to new customer segments They will also create new © The Economist Intelligence Unit Limited 2013 opportunities for businesses to engage with customers on a more regular basis and foster stronger relationships For consumers, reduced transaction costs and more convenient use of goods DANANG UNIVERSITY UNIVERSITY OF ECONOMICS TRADE DEPARTMENT  MICROECONOMICS Demand and Supply Teacher: Nguyen Huu Hien Members of group: • Le My Linh • Duong Minh Ha • Le Thanh Quyen • Le Thi Truc Kieu • Huynh Thi Thuy Trang • Hoang Thi Phuong Thao Class: 39K01.1-CLC Dec 11 DEMAND and SUPPLY MICROECONOMICS and MACROECONOMICS   Microeconomics is a branch of economics that studies the behavior of individual economics units: consumers, workers, investors, owners of land, business firms in making decisions on the allocation of limited resources Typically, it applies to markets where goods or services are bought and sold Microeconomics examines how these decisions and behaviors affect the supply and demand for goods and services, which determines prices, and how prices, in turn, determine the quantity supplied and quantity demanded of goods and services This is in contrast to macroeconomics, which involves the sum total of economic activity, dealing with the issues of growth, inflation, and unemployment Macroeconomics is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole, rather than individual markets This includes national, regional, and global economies With microeconomics, macroeconomics is one of the two most general fields in economics MICROECONOMICS 14 Dec 11 DEMAND and SUPPLY DEMAND and SUPPLY    Demand Definition: Demand is a schedule or a curve that shows the various amounts of product that consumers are willing and able to purchase at each of a series of possible prices during a specified period of time The demand curve: the inverse relationship between price and quantity demanded for any product can be represented on a simple graph, in which, by convention, we measure quantity demanded on the horizontal axis and price on the vertical axis Such a curve is called a demand curve Its downward slope reflects the law of demand – people buy more of a product, service, or resource as its price falls Ex: P D Q Determinants of demand: the demand curve shifts because of changes in: • Consumer tastes • The number of buyers in the market • Consumer income • The prices of substitute or complementary goods • Consumer expectations MICROECONOMICS 14 Dec 11 DEMAND and SUPPLY Market demand: market demand includes all of individual demands on the market In theory, market demand is obtained by adding all the individual quantities demanded at each price; we then plot the price and the total quantity demanded as one point on the market demand curve Change in demand: a change in demand schedule or, graphically, a shift in the demand curve is called a change in demand It occurs because the consumer’s state of mind about purchasing the product has been altered in response to a change in one or more of the determinants of demand If consumers desire to buy more corn at each possible price, that increase in demand is shown as a shift of the demand curve to the right Changes in quantity demanded: is a movement from one point to another point – from one price-quantity combination to another- on a fixed demand schedule or demand curve The cause of such a change is an increase or decrease in the price of the product under consideration This is a simple example: With the price 15,000 VND/kg of oranges, consumer A is ready to buy kg for his family for one day in hot summer months, 2008 in Hanoi However, when the price increases by 30,000 VND/kg, that consumer only desire to and afford to buy kg When the orange price is 15,000 VND/kg, the oranges quantity demanded is marketed to 10 tons per day But when the price increases by 30,000 VN/kg, there are only tons of oranges per day in Hanoi market So, with the different price, the consumers will desire to and afford to buy different quantities of articles Whereby, we see that the oranges quantity demanded of consumer A in Hanoi is kg/day while Hanoi market demand is 10 tons of oranges per day when the orange price is 15,000 The Role of Law in the Green Economy Challenges and Opportunities for the Liberalization of Environmental Goods and Services FABIANO DE ANDRADE CORREA The green economy is a concept developed by the United Nations Environment Programme (UNEP) aimed at fostering a transition to a new kind of economic growth for both developed and developing countries It involves the greening of eleven key sectors of the economy toward a less carbon-intensive and more resource-efficient development model It is thus considered one of the most important economic vehicles for sustainable development and a new paradigm that can drive growth of income and jobs with less stress put on the environment There are two important legal points related to the promotion of the green economy First, the lack of a binding definition of this concept raises criticism regarding its scope and objectives Second, law and regulation have an important role in promoting the implementation of these objectives, at both the national and international levels The liberalization of trade in environmental goods and services (EGS), for example, is important to the greening of the economy and to the expansion of cleaner technologies worldwide However, the lack of a legal definition of EGS, and of a binding timetable for their liberalization, hinders progress in this area This chapter provides a brief discussion of these issues, first commenting on the definition of the green economy and the role that trade plays in promoting it, then examining the legal challenges facing liberalization of EGS Considering the lack of progress of liberalization of EGS at the multilateral level, the chapter presents examples of forward-moving regional initiatives, such as among the Asia-Pacific Economic Cooperation (APEC) agreement parties and in trade agreements signed by the European Union (EU) Any statements of fact, opinion, or analysis expressed herein are entirely those of the author and are not a ributable to the International Development Law Organization Information contained in this chapter draws partly upon work included in Fabiano de Andrade Correa, “The Implementation of Sustainable Development in Regional Trade Agreements: A Case Study on the European Union and MERCOSUR,” Ph.D thesis defended at the European University Institute, Florence, Italy, in June 2013 147 148 The World Bank Legal Review The Concept of the Green Economy The green economy was conceived by UNEP as an economic model that would improve human well-being and social equity while also significantly reducing environmental risks and ecological scarcities: In its simplest expression, a green economy is low carbon, resource efficient, and socially inclusive In a green economy, growth in income and employment should be driven by public and private investments that reduce carbon emissions and pollution, enhance energy and resource efficiency, and prevent the loss of biodiversity and ecosystem services The key aim for a transition to a green economy is to eliminate the trade-offs between economic growth and investment and gains in environmental quality and social inclusiveness The main hypothesis is that the environmental and social goals of a green economy can also generate increases in income, growth, and enhanced well-being.1 The green economy agenda implies a departure from many accepted practices in key sectors of the economy, recognizing that “business as usual” economic practices cannot respond to global challenges such as climate change, loss of biodiversity, and the remaining worldwide inequality The UNEP green economy report thus proposes the greening of eleven key sectors of the economy: agriculture, fisheries, water, forests, energy, manufacturing, waste, buildings and construction, transportation, tourism, and cities It also proposes innovative solutions to challenges that are fundamentally linked to the manner in which economic development is framed and guided by policy makers The basic premise is that economic ... markets for goods and services Name some factors that can cause a shift in the supply curve in markets for goods and services 16/18 Shifts in Demand and Supply for Goods and Services Critical Thinking... provided in [link] 6/18 Shifts in Demand and Supply for Goods and Services Demand Curve with Income Increase With an increase in income, consumers will purchase larger quantities, pushing demand to... likely to explain this outcome? Sketch a demand and supply diagram and explain your reasoning for each A rise in demand A fall in demand A rise in supply A fall in supply References Landsburg, Steven