Monday, December 30, 2019
The And Policy Talks, The Ecological Crisis - 958 Words
Environmental Movement Proliferation In the academia and policy talks, the ecological crisis has turned into a well-established topic (Yearley, 1992). The rise of environmental politics in the 1960s was mainly driven by environmental movements and a resurgent global civil society. Jamison (1996), notedthat the movement focussed on creating awareness throughout the 1960s. For instance, the publication of Silent Spring by Rachel Carlson (1962), Paul Ehrlichââ¬â¢s The Population Bomb (1968) and Garrett Hardinââ¬â¢s Tragedy of the Commons (1968) focused public attention to the issue, and made the idea of ecological limits popular. This period also saw the creation of environmentalNon-government Organizations ( NGOs) focusing on the protection of the environment such the Worldwide Fund for Nature (WWF) and the International Union for the Conservation of Nature (IUCN). In the 1970s, the environmental movement became a political concern and entered the phase of organisation and institutionalisation (Jamison, 1996). For example, one of the 130 outcomes is the implementation of the United Nations Environmental Programme (UNEP) after the Stockholm conference, and the establishment of the transnational environmental group Greenpeace. There was also a growth of alternative holistic visions of the nature-society relationship, likeGoldsmithââ¬â¢s Blueprint for survival (1972). This was underpinned by the rising recognition of the Limits to Growth (Meadows et al., 1972). The environmental movementShow MoreRelatedPope By John Pope : A Critical Approach Between Science And Religion880 Words à |à 4 Pagesinterrelationships of physical-chemical-biological-ecological-social-political-economic talk about global, national or local politics, history, art, urban planning, systems ethnic groups, biochemistry, ethology, biology ... all through a common relationship called ecology, natural and human. Pope mentions the needs of a dialogue between science and religion, noting that on many specific issues the Chur ch does not have to propose a final policy. From the first chapter the Pope assumes the latestRead MoreThe Postmodern Theory Of Narrative Therapy Interventions1594 Words à |à 7 Pagesââ¬Å"why did he or she hit that person?â⬠or ââ¬Å"what can be done to help survivors of domestic violence.â⬠Crisis Theory According to the crisis theory, people may experience a crisis events that may temporary put them in a psychological state where they are unable to function, cope, or rationally think about their situation (Langer Lietz, 2015). For instance, victims of domestic violence are often in a crisis situation where they may be in danger, but they are unable to leave because the abuser may hurtRead MoreThe Great Human Tumor : Earth s Human Overpopulation Crisis1357 Words à |à 6 PagesThe Great Human Tumor: Earthââ¬â¢s Human Overpopulation Crisis The best-selling novel by ââ¬Å"DaVinci Codeâ⬠author Dan Brown ââ¬Å"Infernoâ⬠has a plot that is driven by the human overpopulation crisis. Brown depicts a mad scientist that believes he can rid the world of the majority of its health and environmental issues by simply purging the world of two-thirds of its population. But is the assertion brought forth by Brownââ¬â¢s antagonist that far from the truth? When we look at the effects of human overpopulationRead MoreGlobalization Brings Opportunities And Challenges1394 Words à |à 6 Pagestransport and communication between countries[t]. This means that the exchange of goods became quicker and less complicated. Globalization is basically of 3 types which are political, economical, and cultural but less typical types to talk about are the ecological and military globalization. However, each type has its own pros and cons depending on the country and situation1. -The economic sphere is the major catalyst for globalization and is at the same time the most affected area. Many countriesRead MoreThe Problem Of The Crisis Of Bundelkhand Region Is Affected By The Menace Of Droughts Since Over A Decade990 Words à |à 4 Pageson the analysis, certain problems and policy formulations regarding various issues prevailing in Bundelkhand region is pointed out. In general Bundelkhand region is affected by the menace of droughts since over a decade. As the article emphasise that the major reason behind the grief and catastrophe in the region is drought followed by flood, hailstorm and irregularity in rainfall. But ecological and environmental factors alone are not responsible for the crisis in the region. There are other reasonsRead More History of the Origins of Environmental Ethics Essay1045 Words à |à 5 Pagesbecause of the publication of two papers in Science: Lynn Whites The Historical Roots of our Ecologic Crisis (March 1967) and Garett Hardins The Tragedy of the Commons (December 1968). Most influential with regard to this kind of thinking, however, was an essay in Aldo Leopolds A Sand County Almanac, The Land Ethic, in which Leopold explicitly claimed that the roots of the ecological crisis were philosophical. (Although originally published in 1949, Sand County Almanac became widely availableRead MoreSustainability of The Global Food System1104 Words à |à 5 Pagesbeforeâ⬠(Wilson, 2008). Here we are, producing more and more affordable food. However, the World Bank recently announced that thirty-three countries are still famine and hungers as the food price are climbing. Wilson stated, ââ¬Å"despite the current food crisis, last yearââ¬â¢s worldwide grain harvest was colossal, five per cent above the previous yearââ¬â¢sâ⬠(Wilson, 2008). This statement support that the food is not distributed evenly. The food production actually increased but people are still in hunger and malnutritionRead MoreThe Envi ronmental Impact of Cattle Farming Essay2069 Words à |à 9 Pagessustainability, and a decrease in their ecological footprint. This long-term initiative includes the maintenance and improvement of: energy efficiency, water management, product and business development, food safety, bio-security, and leadership in trade. Such topics are categorized into 23 programs across 12 areas within Alberta. Through initiatives, programs, alternatives, and renovations the industry has high hopes for dramatic changes to their ecological footprint. (Canada News Centre, 2011) Read MoreThe United Nations Framework Convention On Climate Change922 Words à |à 4 PagesI: Political The main barrier to meeting the challenges of climate change is political inertia. As the centres of political power, it is the responsibility of government officials to use their best judgement and make sound policy decisions on behalf of citizens. Such decisions require active engagement with other governments as well as with experts, stakeholders and the public. In the context of climate change, it also entail a careful a balance the short-and long-term effects of taking or failingRead MoreEvolution of Public Administration in Woodrow Wilsons The study of Public Administration593 Words à |à 2 Pagesto 1947 : This period is behavioral challenge to P.A so, there are environmental effects on behavior of administration . Also, at this period , the politics administration dichotomy refuted by some thinkers . ï⠧ Phase 4 : From 1948 to 1970 : P.A has crisis of identity because of challenges at previous phase . ï⠧ Phase 5 : From 1971 onwards : There is great progress of P.A science and showed a new of P.A which focus on dynamics , inter-disciplinary and new trends which are comparative administration
Sunday, December 22, 2019
Old Versus New Methods Of Advertising - 999 Words
The Old versus New Methods of Advertising The approachable tactics used to draw in consumers by advertisers have been fairly equally traditional and nontraditional. In recent years more people have been drawn to more (electronic) social sites instead of TV or magazines for the new and up to date trends that interest consumers. One example of a new form of advertising is stated by Louise Story in the article ââ¬Å"Anywhere the Eye Can See, Itââ¬â¢s likely to See an Ad,â⬠he illustrates the electronic advances by stating ââ¬Å"Old-fashioned billboards are being converted to digital screens...they allow advertisers to change messages frequently from remote computers, timing their pitches to sales events or the hour of the day.â⬠Story emphasizes through this example that advertisers of companies have invaded the lives of consumers by being available in all places and times of the day. Although the common approach to standard advertising is traditional advertising (such a s newspapers, magazines, radio, television), the new modern form of nontraditional advertising has made an even bigger hit with consumers on social media and in emails. This has allowed companies to perform questionable tactics in the ad industry and the personal approach to gain consumers. As advertisers expand their advertising horizon with the many forms of ads, they have attempted to in turn attract the attention of consumers or change their perception of their product to increase their want and/or need for theShow MoreRelatedThe Culture Industry By Adorno And Horkheimer And The Magic System1625 Words à |à 7 Pagessociety has created this new grouping of the public; to be consumer culture. The socio-economic structure thrives in capitalism and has evolved society, culturally. A new way of living has evolved and ultimately altered and shaped the public to be heavily influenced by capitalism. The two-works affected and focused around this topic are; The Culture Industry by Ado rno and Horkheimer and The Magic System by Raymond Williams. The Magic System primarily focuses on how advertising development allows theRead MoreMarketing Communications Assignment1072 Words à |à 5 Pagessocial issues in regards to the alcohol industry. These range from associated disease as well as health and safety impacts from high levels of alcohol consumption, to under-age drinking and third world countries the portion of spending money on alcohol versus basic needs. o Domestic violence has consistently risen and has been linked to the consumption of high levels of alcohol. - Demographic: - Technological: o The malting industry has introduced automation and computerisationRead MoreThe Impact Of Outdoor Advertising On Consumer Buying Decision And Behavior1523 Words à |à 7 Pagespurpose of this research paper is to evaluate the impact outdoor advertising on consumer buying decision and behaviour in Cameroon. Our study explores consumerââ¬â¢s personality and attitude, analyses how consumers make their purchase decisions and why consumers buy. It also describes on the other hand, advertising strategies and methods used in shaping consumers behaviour. To test our experiment, we shall use the qualitative design method and self-random sampling will be used to select 100 potential consumersRead MoreMountain Dew Case Study1595 Words à |à 7 Pagestests versus other diet drinks in the category because the heavy citrus flavor did a better job of masking the undesirable taste of the artificial sweetener. So PepsiCo allocated money for incremental advertising to support an effort to ex pand Diet Mountain Dew distribution. Bill Bruce, then a junior copywriter working on several brands, was assigned to the project. Bruce came up with the Do Diet Dew tag line (which soon evolved into Do the Dew to support the entire brand) and several new ideasRead MoreBurger King: Promoting a Food Fight1150 Words à |à 5 Pagesfired the firmââ¬â¢s advertising agency Young Rubicam (YR) - award the advertising of BK Company to Crispin Porter + Bogusky (Crispin) The Advertising Agencies: Young Rubicam (YR) versus Crispin Porter + Bogusky (Crispin): YR - had gotten the $350 million BK account only 10 months earlier - to help revive BKââ¬â¢s sales, it had developed a campaign with the theme ââ¬Å"THE FIREââ¬â¢S READYâ⬠which focused on BKââ¬â¢s flame-broiled cooking method versus frying Read MoreWhiz Calculator Case Study783 Words à |à 4 Pagescomprised of only fixed expenses. President Riesman finds this method unsatisfactory for two major reasons: 1. It is difficult to judge how good the estimates made by the department heads really are; and 2. Selling conditions fluctuate over time and there is no way to account for these changes in the selling expenses once the budget is set for that year. Thus a new budgeting method is being researched at this time. The new method, if adopted, would be based on both fixed and variable costs. TheRead MoreCom306D1309 Words à |à 6 Pagesthe advertisements in the South African editions of Elle magazine (aimed at 16-35 year old fashion-forward woman), published during February and March 2012: A cross-sectional comparison. 2 RESEARCH CRITERIA This research evaluates the creative concepts in two consecutive issues of Elle magazines. The copy testing of the February and March 2012 issues will uncover: * The varying types of advertising * Similarities in the messaging ââ¬â similar products/services advertised 3 Read MorePrint Is Not So Fast1573 Words à |à 7 PagesBy the Numbers.â⬠collected about the rise and fall of the revenues of print advertising versus online advertising, from 2003 through 2012. According to the data collected, online advertising did not have a consistent rise in revenue and print advertising did not have a consistent fall. From 2003 through 2012, print advertising brought in about $249,849 million in revenue, while during the same time period online advertising brought in about $26,127 million in revenue, for a combined total of aboutRead MoreHotel-Booking Market1131 Words à |à 5 Pageswebsites like Expedia and Google have raised questions about the benefits of promoting online versus good old fashion TV campaigning. Online advertising is preferred method today as it provides consumers a quick way to compare prices and complete the transaction all in one step. Online channels recently included social-networking services Facebook and Twitter take a ma jority share of the web-advertising market. Second portion of that share is still spent for ads on search sites. With major declineRead MoreForecasting Methods1713 Words à |à 7 Pagesfollowing questions: ÃâX What new economic, technical, or sociological forces is the organization likely to face in both the near and long term? ÃâX When might these forces impact the firmà ¡Ã ¦s objective environment? ÃâX Who is likely to be first to adapt to each competitive challenge? ÃâX How much change should the firm anticipate both in the short run and the long run? In this paper, I will provide an overview of forecasting methods and compare and contrast these various methods. The paper will then focus
Saturday, December 14, 2019
Ethical dilemmas Free Essays
Abstract This paper looks into the legal and physiological as well as a counselors best measures to take incase of an emergency relating to an abused woman who has a baby that could suffer if the woman is further exposed to the harm she has been undergoing. Introduction Ethical dilemmas are offset by conflict of ethical codes and a patientââ¬â¢s interest. According to Hill, Glaser and Harden, an ethical dilemma is a result of ââ¬Ëno appropriate course of action, since each course of action conflicts with a set code of ethics all which expose the decision makers to uncertain risks (18-19). We will write a custom essay sample on Ethical dilemmas or any similar topic only for you Order Now As such, the clinician or therapist has to assess the best course of action, help and recommendations to resolve a case without exposing both himself and the patient to risks. In this case, Jean is faced by an ethical dilemma in which she has to weigh her options without destroying her therapeutic relationship with Mary and her work. Jean has to assess her professional codes, the possible legal implications and the clientââ¬â¢s needs before embarking on finding resolve. Though Mary is now absorbed in the counseling, itââ¬â¢s not clear how committed she is to the therapy, secondly, Mary is possibly too emotionally impaired that, she is confused about positive resolve. Maryââ¬â¢s from the onset doesnââ¬â¢t want her problem to be exposed, and also, she is afraid her decisions might result to further complexion of her life, endanger her little boy and subsequently expose her to risks. She has confided in Jean and Jean has, through professional ethics, to seek a proper methodology of arresting Maryââ¬â¢s problem. According to Hill, Glaser and Harden, ethical consideration which covers intuitive and cognitive levels of reasoning and conà crete models for ethical decision making, and comments is seen to arise as Mary does not want to be known that she is attending counseling lessons most definitely by her husband. Issues of regarding the information and situation of the victim confidential is conflicting with a set of procedures which would help resolve Maryââ¬â¢s case. As such some ethical considerations on the side of Jean are necessary so as to find a solution and to more appropriately help Mary and the boy. Ethical considerations Jean has an obligation to safeguard respect for persons. This translates to respecting the autonomy and self-determination of the victim. The context of confidentiality arises as the foremost problem Jean is facing. Mary is seeking redress however; she is still rigid about eventualities which she has to face in the event of complete separation with her husband. Most accurately, she is fiscally unable hence would rather tolerate further abuse than starve in the streets. From this perspective, Jean is facing a profound ethical dilemma since she has to evaluate the need for assisting this woman while at the same time; she remains silent about her problem. This is a result of Maryââ¬â¢s anxiety about the destructive social, physical, psychological and legal consequences of disà closing her experience. Her situation is characterized by instability, insecurity, fear, dependence and loss of autonomy. Jean has a duty to protect those who lack autonomy, including providing security from harm or abuse. Any legal action aimed at Maryââ¬â¢s husband will certainly invoke an impasse which will further affect Mary. Mary has confided in Jean and Jeanââ¬â¢s responsibility is to weigh and assess the options best suited to help Mary without further infringing her physiological well being. However, Jean has a more profound role in her capacity; she is now entrusted with the welfare of Mary and the child involved (Nama Schwartz 2002). She has a role which includes minimizing risks and assuring that benefits which Mary will get outweigh risks and eventualities which would harm Mary and her child. The child is another issue which Jean has to ethically consider. The child has suffered and is still exposed to both physical and physiological dangers. Jean has a duty to ensure that, the child is protected and that she evenly distributes the benefits of child protection without infringing Maryââ¬â¢s physiological well being (Brasseur 2001).On this child issue, research has shown that both maternal depression and social adversity lead to compromised social, cognitive, and emotional outcomes for infants (Murray Cooper, 1997), as such Jean has a huge responsibility to help the child as well. Read also Ethical Dilemma ââ¬Å"Glengarry Glen Rossâ⬠à by David Mamet However; Jean has to weigh the liability incurable if she helps the victim. Her decisions and involvement in implementing the most effective and concise decisions might result to drastic legal repercussions on her side (WHO 2007). According to Nama and Schwartz, as a social worker, Jean might find herself going beyond her employer code of ethics (6). Confidentiality The context of confidentiality comes up when Mary confesses her traumatic life and the sensitive issue of the boyââ¬â¢s harassment. Jean has been privileged by Mary as a confidant regardless of her position as a social worker. Secondly, Mary has testified that the boy is in great risk if the father continues to be near him. The need for confiding is to edge nearer to the truth about both Maryââ¬â¢s and the babyââ¬â¢s condition and if the father had in any way molested or even sexually assaulted the baby. This is based on the fact that Mary wants the issue of the baby and the father kept secret. Jean has a duty to warn the patient of the impending dangers of going back to her husband and the subsequent eventualities on the baby (143). The husband might be more violent and as he is used to, beat her and abuse the child. Jean should, assess and document Maryââ¬â¢s problems and inform the liable authorities. This way, the principles of the practice of informed consent wonââ¬â¢t put Jean at a risk of prosecutions since if ââ¬Ëthe clientsââ¬â¢ safety is jeopardized, Mary risked with her consent fully aware of the implications as advised by Jean (Bednar et al., 1991). According to Hill, Glaser and Harden, ââ¬Ëthe protection of Mary takes precedence over Mary agreeing to treatment in this emergency situation (143). Addressing the issues From the onset, Jean should document Maryââ¬â¢s case and inform the facilitator of the impeding problem. This way she will be able to present credible evidence about Maryââ¬â¢s case to any referral or during counseling. Documenting Maryââ¬â¢s case is the initial step to address the problem. This, she should do in a manner that wont risk the confidentiality of the victims. She should make available the basic care Mary and the child need. This she should do at the earliest convenience even before Mary tells away any further problems she is facing. Jean has already assessed the immediate consequences of foregoing treatment and since Maryââ¬â¢s behavioral reacà tion to the current situation is potentially harmful to herself and the baby. If help is not offered immediately, she has to take whatever steps are necessary to ensure no harm comes to Mary and the baby (Bednar et al). As such, Jean has to protect the confidentiality to ensure the baby and the mothers are safe as well as herself (WHO, 2001). Jean should take into consideration that the victimââ¬â¢s physical safety is the most important step; as such she should not allow Mary to leave the facility whatsoever until a resolve is found. Also, she should make sure the confidentiality of the victim remains prioritized. Each resolve she uses should be aimed at reducing any possible caused to Mary. The baby should be given all necessary child protection amenities and kept safe. This should be prioritized to avert Maryââ¬â¢s irrationality from taking unprecedented emotional toll on the baby. These actions will safeguard both the mother and baby. Consultation There is an urgent need for Jean to consult with relevant authorities about the issue of the husband. This is based on an intuitive and the critical evaluative levels of moral reasoning as argued by Kitchener (1984). This will help Jean have a background and a foreword on what Mary needs in therapy and if, she Jean, is capable or cannot, based on a cognitive evaluation of the confidence aspect of the case, continue to counsel Mary. This will promptly lead to consulting with another counselor to help Mary. Jean has to account if the cognitive and rational respites are good for both the subjects and herself, and if, in her perspective, would they befit her (Hill, Glaser and Harden, 12). Through consultation Jean can be able to identify a better treatment. She and the colleague can re-examine the data Jean has collected about the patient and come up with a more decisive resolve. The new resolve might affect Mary and breach the ethics of confidentiality, but they are effective and would result to helping Mary once and for all. Not to honor the clientââ¬â¢s choice without compelling reasons would constitute a paternalistic response from the Jean (Hill, Glaser and Harden, 25). The considerations here should aim at making sure more benefits and less harm came to Mary conceptually regardless of her perception. Jean will continue to evaluate and consult about the case to find more appropriate resolves in principal. To consult with someone and document the consultation when in doubt is a mandatory practice which Jean should not ignore. Consultation is mandatory since the situation involves physical harm to both Mary and the baby and threats and circumà stances in which abuse is susceptible (Hill, Glaser and Harden, 25). Responsibility Jean Is now bound in principal as the guardian to Mary. She has to follow up the case and make sure that Maryââ¬â¢s therapy continues so as to have her empowered to become independent and have the ability to have autonomy and an emotional balance so as to make rational decisions. Her commitment to Mary is to ensure Mary recovers and regains her autonomy Other considerations Jean should assess if the potential risk of Mary and the boy coming to harm and if all suggestions made to clients were meant to ensure clientsââ¬â¢ safety. She should make sure Interventions initiated to decrease the risk of the baby coming to harm. On the case of the mother, she should consult clinical opinions regarding clientsââ¬â¢ capacity so that she can assess if the motherââ¬â¢s ability to determine right from wrong. Consultation with other professionals and supervisors so as to have Mary watched and advised incase she is not within proximity of the facility. Works cited Brasseur. D (2001) Ethical considerations in clinical trials;(CPMP) Hill, M., Glaser, K., Harden, J, () A feminist model for ethical decision making Murray, L., Cooper, P. (Eds). (1997). à Postpartum depression and child development. New York: The Guilford Press. Nama.N., Swartz.L., (2002): Ethical and Social Dilemmas in Community-based Controlled Trials in Situations of Poverty: A View from a South African Project : Journal of Community Applied Social Psychology 12: 286ââ¬â297 How to cite Ethical dilemmas, Essay examples
Thursday, December 5, 2019
Microeconomics Principles & Policy-Free-Samples for Students
Questions: 1.Without deriving the Optimal Consumption basket, show that the basket with x = 25 cups of coffee, and y = 50 litres of milk, is NOT optimal. 2.Derive the expression forSally's marginal rate of substitution. (1 Mark) Question 3: FindSally's optimal consumption basket. 3.Find Sally's new optimal consumption basket if the price of coffee increases to Px = $5 per cup. 4.Is coffee a Giffen good for Sally? Briefly explain. 5.Find the income and substitution effects associated with an increase in the price of coffee from $4 to $5 a cup. 6.Describe the relationship betweenSally's demand for coffee and her income. Your answers must reference the your previous answers, AND use the correct term to describe the relationship. Answers 1.According to the problem, Sallys income is I = $200 and the price of one cup of coffee is $4 and that of one liter of milk is $1. Therefore, if Sally buys a commodity basket consisting of 25 cups of coffee and 50 litres of milk, then the amount of money spent on the commodity basket by Sally is: M = 25*($4) + 50*($1) = $100 + $50 = $150 Therefore, the amount of money spent on this basket is $150, which is less than $200. This implies that Sally is not spending the entire income on this commodity basket. A commodity basket is considered to be optimal if it fully utilizes the income of the concerned individual (Baumol and Blinder 2015). This shows that the commodity basket is not optimal. 2.The marginal rate of substitution of X for Y can be express as the amount of Y for which one unit of X can be exchanged (Varian 2014): MRSXY = MUX/MUY = 20/x Therefore, MRSXY = 20/x. 3.The optimal commodity basket can be derived with the help of the equilibrium equation. At equilibrium, MUX/MUY= PX/PY (Wetzstein 2013). This implies, 20/x = 4 Therefore, x = 5, which implies, X = 25 From the budget-line equation, we get that: 200 = 4*25 + 1*Y Therefore, Y = 200 -100 = 100. The optimal commodity basket of Sally is (X=25, Y= 100). 4.If the price of coffee increases from $4 per cup to $5 per cup, then the optimality condition for Sally can be written as follows: MUX/MUY = PX/PY (Kreps 2012). This shows that, 20/x = 5 which implies, X = 16. Putting the value of X in the budget line equation of Sally, we get as follows: 200 = 5*16 + 1*Y, which implies, Y = 200 80 = 120. The new optimal consumption basket for sally is therefore, (X = 16, Y =120). 5.A Giffen good is defined as a special type of inferior product, whose income effect is so strong that it offsets the substitution effect, in case of any change in the price levels of that good. Giffen goods fall in the exceptions of law of demand as it shows a positively sloped demand curve, which implies that with the increase in price, people tend to buy more of these commodities (Biederman 2015). In this problem, when the price of coffee is $4 per cup, Sally buys 25 cups of coffee and when the price of coffee rises to $5 per cup, Sally buys 16 cups of coffee. Therefore, with an increase in the price of coffee, the demand for coffee decreases, implying that coffee, in this case, is not a Giffen good. 6.With a change in the price of coffee from $4 to $5, the demand for coffee decreases from 25 units to 16 units. This price effect can be divided into income effect and substitution effect. The income effect shows the change in the demand of a commodity due to increased or decreased purchasing power as a result of purchasing power. On the other hand, substitution effect is that component of the price effect, which shows the change in demand of a commodity due to sole change in the relative prices of the two commodities in a two-commodity economy. According to Slutsky decomposition method, these two effects can be mathematically derived as follows: With an increase in price of coffee from $4 to $5, to keep the consumer at the same level of utility, that is to maintain the same commodity basket as consumed Sally before, her new income should be: M1 = 5*25 + 1*100 = 125 + 100 = 225 This implies, ?M = M1 M0 = 225-200 = 25 Now, at the new price situation, given the same price of milk, if the income is compensated, the consumption of both X and Y will change: The substitution effect can be written as: ?Xs = X(Px1, Py, M1) X(Px0, Py, M0) This can be diagrammatically shown as follows: Figure 3: Decomposition of Price effect into Income effect and Substitution effect [Source: Created by author] Thus, it can be seen that, with the increase in the price of coffee, the demand for coffee decreases. This decrease in the quantity demanded can be attributed to two effects, namely the income effect and the substitution effect (Sasakura 2016). Income effect Due to an increase in the price of coffee, the price of milk remaining the same, the relative income decreases, as a result of fall in the purchasing power. This is an indirect effect of an increase in price of coffee. The demand decreases partially, from X0 to X0, due to this relative decrease in the real income of Sally. This is known as the Income effect. Substitution effect- An increase in the price of coffee changes the relative price ratio, thereby causing a negative substitute effect. This implies, the quantity demanded for coffee decreases (from X0 to X1), due to a change in the relative price ratio. This is known as the Substitution effect (Phlips 2014). Together, these two effects result to a price effect, which results in a decrease in quantity demanded for coffee from X0 to X1. 7.It can be seen from above calculations that with a one unit increase in price of coffee, Sallys demand for coffee decreases from 25 cups to 16 cups, that is, by 9 units. Again, it has been already seen that coffee is not a Giffen good in this case. On the other hand, with one unit increase in the price, the demand decreases by nine units, indicating that the demand for coffee in case of Sally is highly price elastic. Therefore, it can be concluded from the above observations that coffee is a normal good and with an increase in the income of Sally, theEconomics demand for coffee will rise, that is, income of Sally and Sallys demand for coffee are positively related (Gillespie 2014) References: Baumol, W.J. and Blinder, A.S., 2015.Microeconomics: Principles and policy. Cengage Learning. Biederman, D.K., 2015. A strictly-concave, non-spliced, Giffen-compatible utility function. Economics Letters,131, pp.24-28. Gillespie, A., 2014.Foundations of economics. Oxford University Press, USA. Kreps, D.M., 2012.Microeconomic foundations I: choice and competitive markets(Vol. 1). Princeton university press. Phlips, L., 2014.Applied Consumption Analysis: Advanced Textbooks in https://myassignmenthelp.com/uk/project-management-assignment-help.html (Vol. 5). Elsevier. Sasakura, K., 2016. Slutsky Revisited: A New Decomposition of the Price Effect.Italian Economic Journal,2(2), pp.253-280. Varian, H.R., 2014.Intermediate Microeconomics: A Modern Approach: Ninth International Student Edition. WW Norton Company. Wetzstein, M.E., 2013.Microeconomic theory: concepts and connections. Routledge.
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