Supply Chain Management Assignment Sample 2024
Online Exam
1) Micro
1.0 Price elasticity
- Price elasticity of demand and price elasticity of supply
The price elasticity of demand is the change percentage in the demanded quantity of services or goods divided by the change percentage in the price. In the form of a measure of economy, the presence of price elasticity of demand is noticed, which is related to the demand sensitivity relative to the price change. The change measure in the number of tickets, because of the price change of service, and goods is known in the name of demand’s price elasticity.
The price elasticity of supply is a measure which is in economics is used for demonstrating elasticity, or responsiveness of the supplied quantity of services, and goods to a change in its cost, or price. There are various factors presence are noticed regarding the price elasticity of supply (Munro et al. 2021). Through the production time period adjustment, ease of stock storing, and capacity of spare production, and ease of switching between products in pace of technological advancement, and products in production it is determined. In the economics, and business, the price elasticity refers to the degree to which producers, or conumers, and individuals change their amount or the demand in the form of a result of a change in the form of a service, or goods price. Supply Chain Management Assignment Sample 2024
- The perfectly elasticity supply curve and the relatively inelastic demand curve
Figure 1: Perfect elasticity supply
(Source: Self-created)
The perfect elasticity supply curve is drawn by positioning the price on the Y-axis, and the number of tickets on the X-axis. In this regard, from S to S1 perfectly elastic supply is demonstrated.
Figure 2: Relatively inelastic curve
(Source: Self-created)
The relatively inelastic curve is demonstrated in the image above, and it is drawn by keeping the price in the Y-axis and the number of tickets on the X-axis. From D to D a slope is also drawn in this regard.
- Change in the market equilibrium with the new ticket released
With the new tickers release the market equilibrium will go up, because, the demand will get an increase in this regard. At the demand, and supply curve the presence of a new equilibrium will be noticed. A decrease in the demand will cause the price of the equilibrium to fall, and in this regard, decrease is noticed in the supplied number of tickets also (Huang and Kockelman, 2020). A supply increase, for this, all other things will stay unchanged. Because of this, price of the equilibrium will fall, and increase will be noticed in the quantity demanded. A decrease in the chain of supply will cause the price of the equilibrium to go up. In this regard, the decrease will be noticed also in the new tickets release also. Supply Chain Management Assignment Sample 2024
2.0 Total revenue and profit
- Total profit and total revenue
Figure 3: Total profit and total revenue
(Source: Self-created in MS Excel)
In the image above the total revenue is £0, £2000, £3600, £4800, £6000, £7000, £6600, and £4900. The total profit value is present in this regard, at -£1000, £0, £1100, £2000, £1800, £1000, -£1400, and -£6100 respectively.
- Profit maximizing output
Figure 4: Profit maximization output
(Source: Self-created)
In the above graph output of the profit maximization is demonstrated on the X-axis, and in the Y-axis, cost and revenue are demonstrated. The total cost is represented through the curve line, and total revenue is demonstrated through the straight line. In between that curve, and straight line the profit is demonstrated.
- The way of finding the output of profit maximization
The other way of finding profit maximization is monitoring closely the costs. For selling a bit more it cost is huge, at that time, the marginal costs exceed the marginal revenue (Abeysekara et al. 2020). The areas need to be identified in this regard, and total costs need to be kept tracked where reduction in the cost can be done. An example of it is with suppliers doing the negotiation for better prices, or outsourcing considering in terms of non-core functions Supply Chain Management Assignment Sample 2024.
- Circumstances under which a firm might decide to stop production in the short run
In the short run, when recovery is not able to be done by a firm regarding its fixed costs, at that time firm will choose to temporarily shut down if the good’s price is less than average variable costs.
2) Macro
1.0 Equilibrium condition
- Two versions of equilibrium conditions which must hold using both symbols and words
The equilibrium condition where two versions of it must hold, using both symbols and words first, upon the object the net force must be zero, and second, upon the object, the acting of net torque is needed to be present at zero.
- Equilibrium national income Y=7000
Figure 5: Equilibrium national income Y=7000
(Source: Self-created in MS Excel)
By obtaining an expression for savings in terms of national income, in equilibrium, national income Y=7000 is demonstrated in the image above.
- Increase in government spending
Figure 6: Increase in government spending
(Source: Self-created in MS Excel)
The required increase in government spending is 12920.
2.0 Unemployment
- Two ways of unemployment which are commonly measured
The two ways depending on which unemployment is measured, and preferred by economists are the frictional rate of unemployment and cyclic rate of unemployment. The frictional rate of unemployment (Azar and Vives, 2021). The frictional rate of unemployment is preferred by economists because workers actively looking for jobs by the total force of labour (Ding et al. 2020). The cyclic rate of unemployment is preferred by economists because, the industry, or for the cycle of business, the cyclic trends are demonstrated in this regard.
- Types of unemployment
There are three types of unemployment are frictional unemployment, structural unemployment, and cyclical unemployment.
Figure 7: Equilibrium unemployment
(Source: https://www.dineshbakshi.net)
Figure 8: Disequilibrium unemployment
(Source: https://www.sanandres.net)
The difference between equilibrium and disequilibrium is equilibrium unemployment is the difference between people that want to take the job that is offered by them, and people that are able, and willing to take the job (Allen et al. 2020). The occurrence of disequilibrium unemployment happens when for labour aggregated demand is less than the aggregated labor supply. In the rec
- How and what economists were able to learn from the data regarding unemployment following the Mariel Boatlift
From Mariel Boatlift the evidence remains as in David Card’s seminal research is found. The presence of evidence is not noticed in this regard, that wages fell, or the rise of the unemployment is noticed among the workers those who have less skills in Miami even after a refugee suddenly have raised the workforce size by 20% (Barahona et al. 2023). The crime has been increaased by Mariel Boalift in Miami relative to other cities. The effects of crime regarding immigration are on demographic composition are dependent of migrants. The use of the synthetic controls are done for effects studying of wave of refugee on crime.Supply Chain Management Assignment Sample 2024
Essay Questions
Micro
- Surge pricing is also known as dynamic type of pricing which is a particular type of strategy that is utilized through companies for adjusting various prices depending upon demand (Wang and Werning, 2022). Within the particular context of ride-sharing type of services such as Uber as well as Lyft, surge type of pricing mainly occurs when the particularly overall demand for various type of rides exceeds the total number of available type of drivers within a particular type of area. When this type of things is mainly happens, the overall price of a particular type of ride particularly increases (Koby and Wolf, 2020). These type of things encourage additional type of drivers for coming online along with meeting the increased type of demand. Particular type of implications for the overall market for particularly ride-sharing that is mainly compared towards traditional taxi type of services which are significant.
- The first thing is that surge type of pricing determines various ride-sharing type of companies to effectively that allocate different type of resources within real-time. By mainly increasing various prices in the time of periods of high demand, these particular type of companies can mainly incentivize more particular type of drivers for getting on the road. So this type of thing determines that consumers can mainly still get a particular type of ride when they mainly need only one (Epple, et al. 2020). This particular type of flexibility within pricing along with particular management of supply is a very major type of advantage over the particular traditional taxi type of services that very frequently struggle for meeting various type of demand during the particular peak times without utilizing inefficient type of methods such as dispatching more various type of cabs from the different type of areas.
Another thing is that surge type of pricing can mainly lead towards more effective utilization of resources and decrease the overall congestion. By particularly increasing various prices in mainly busy times, various types of ride-sharing companies mainly encourage various type of clients to mainly consider alternative types of transportation type options (Kreindler 2023). This particular thing can mainly help for particularly alleviate various type of traffic congestion along with decrease environmental effect through discouraging very unnecessary type of trips. On the other hand, surge type of pricing has particularly also been subject towards criticism along with scrutiny. Critics mainly argue that it can particularly lead towards price gouging mainly in the particular time of emergencies or natural type of disasters when the overall demand increases very suddenly (Yang et al. 2024). Another thing is that surge type of pricing may pro-actively impact low-income types of individuals who depend upon ride-sharing type of services for transportation. So these type of things potentially make it very difficult for them for affording different type of rides in the time of the peak times.
The data analysis upon Uber Company’s surge type of pricing has mainly highlighted various type of deviations through traditional type of economic theory. One main type of finding is that particular type of demand for overall Uber rides is frequently less adaptable than it expected in the time of surge pricing type of periods (Fokin et al. 2024). Traditional type of economic theory particularly mentions that as the overall costs increase then the overall demand should also decrease. On the other hand, Uber’s overall data has mainly demonstrated that most of the customers are very prepared to pay very significantly higher type of prices in the particular time of surge periods. So these types of things indicate an additional uncompromising type of demand curve. Uber’s particular surge type of pricing algorithm mainly takes into consideration different type of factors beyond the particular simple supply along with demand type dynamics. For an particular example, it mainly considers various type of factors such as various traffic congestion, various weather conditions, along with the overall availability of different drivers within neighboring type areas. This advanced type of approach towards pricing mainly reflects the overall complexity of particularly real-world markets along with challenges towards traditional economic type of frameworks that depend upon simplified type assumptions.
Macro
- Bitcoin mainly qualifies as a particular type of money which is now a main subject of present debate among different type of economists, policymakers, along with the particular enthusiasts of cryptocurrency. To particularly analyze this particular thing, it is very essential for considering the overall characteristics along with functions of money. So these type of things determines the manner in which Bitcoin is particularly depends with them.
Money particularly serves in the three type of primary functions within an particular type of economy such as a particular medium of exchange, a proper unit of particular account, along with a particular type of store of value.
Medium of Exchange: Money particularly encourages the overall transactions through serving as a particular type of medium of exchange. These types of things allow people to trade goods along with services without the necessity for exchange. Bitcoin can particularly function as a medium of exchange within additional type contexts (Dominguez et al. 2021). Progressively, businesses are particularly accepting different type of Bitcoin as a particular form of different type of payment, and there is mainly a growing type of ecosystem of services that assist overall transactions through Bitcoin. On the other hand, its overall acceptance is mainly not as extensive as traditional mandate type of currencies such as the particular type of US dollar or the euro.
Unit of Account: Money particularly serves as an overall unit of account that provides a particularly common type of measure of different value for goods as well as services. While the overall value of Bitcoin is designate within terms of traditional mandate currencies upon exchanges. Its overall price volatility mainly makes it very less suitable which is known as a stable type of unit of account. The overall value of particular Bitcoin can particularly fluctuate constantly over a very short time period. These types of things make it very challenging to utilize as a reliable type of measure of particular value for goods along with services.
Store of Value: Money mainly distributes as a particular store of value which allowing various type of individuals to save the overall power of purchasing for future utilization. Bitcoin’s overall status as a particular store of value is very highly opposed. While particularly some of the supporters suggest that its overall fixed supply along with localized type nature particularly make it an very attractive type of store of value. Bitcoin’s overall value can mainly experience strong along with unpredictable types of fluctuations (Ke et al. 2020). These things can destroy its overall power of purchasing over a very short type of period. These things mainly recognize its overall ability to mainly serve as a particularly reliable type store of value.
Another thing is that money is mainly issued along with regulations through governments or central types of banks that mainly provide a particular type of degree of stability along with legal type backing. Subsequently. Bitcoin is particularly localized along with operates from outside the traditional type of financial type system. Its overall value is mainly determined through supply and demand type of dynamics within the particular market alternatively by any central type authority.
While the particular type of Bitcoin mainly demonstrates some of the particular type of characteristics of money. These things can mainly function as a particular type of medium of exchange within a particular certain aspect and its overall suitability as a particular money is frequently very debated. Its overall extreme type of price volatility along with limited type of acceptance. This type of thing is mainly known as a particular type of unit of account as well as a store of value that mainly raises that factors which mainly present its ability to mainly fulfill the overall functions of particular money very efficiently. Constantly, whether Bitcoin particularly qualifies as a particular type of money may particularly depend upon one’s overall perspective along with the overall criteria utilized to determine it.
Reference List
Journals
Abeysekara, M.G.D., Prasada, D.V.P. and Pathiraja, P.M.E.K., 2020. Equilibrium relations in the coconut sector: an analysis of fresh nut, oil and desiccated coconut market in Sri Lanka for the period 1956-2017. Tropical Agricultural Research, 31(1).
Allen, T., Arkolakis, C. and Li, X., 2020. On the equilibrium properties of network models with heterogeneous agents (No. w27837). National Bureau of Economic Research.
Azar, J. and Vives, X., 2021. General equilibrium oligopoly and ownership structure. Econometrica, 89(3), pp.999-1048.
Barahona, N., Otero, C. and Otero, S., 2023. Equilibrium effects of food labeling policies. Econometrica, 91(3), pp.839-868.
Ding, T., Qu, M., Amjady, N., Wang, F., Bo, R. and Shahidehpour, M., 2020. Tracking equilibrium point under real-time price-based residential demand response. IEEE Transactions on Smart Grid, 12(3), pp.2736-2740.
Dominguez-Iino, T., 2021. Efficiency and redistribution in environmental policy: An equilibrium analysis of agricultural supply chains. Cited on, p.6.
Epple, D., Quintero, L. and Sieg, H., 2020. A new approach to estimating equilibrium models for metropolitan housing markets. Journal of Political Economy, 128(3), pp.948-983.
Fokin, N.D., Malikova, E.V. and Polbin, A.V., 2024. Time-varying parameters error correction model for real ruble exchange rate and oil prices: What has changed due to capital control and sanctions?. Russian Journal of Economics, 10(1), pp.20-33.
Huang, Y. and Kockelman, K.M., 2020. Electric vehicle charging station locations: Elastic demand, station congestion, and network equilibrium. Transportation Research Part D: Transport and Environment, 78, p.102179.
Ke, J., Yang, H., Li, X., Wang, H. and Ye, J., 2020. Pricing and equilibrium in on-demand ride-pooling markets. Transportation Research Part B: Methodological, 139, pp.411-431.
Koby, Y. and Wolf, C., 2020. Aggregation in heterogeneous-firm models: Theory and measurement. Manuscript, July.
Kreindler, G., 2023. Peak-hour road congestion pricing: Experimental evidence and equilibrium implications (No. w30903). National Bureau of Economic Research.
Munro, E., Wager, S. and Xu, K., 2021. Treatment effects in market equilibrium. arXiv preprint arXiv:2109.11647.
Wang, O. and Werning, I., 2022. Dynamic oligopoly and price stickiness. American Economic Review, 112(8), pp.2815-2849.
Yang, D., 2024. A General Equilibrium Investigation of the American Dust Bowl (No. jxz2b). Center for Open Science.
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