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Concept and knowledge based Assignment Help
This concept and knowledge based assignment help consist questions that are required to answer by critical analysis and empirical estimation.
1. Critical analysis
Wants are not insatiable. I can prove it. I get all the coffee I want to drink every morning at breakfast
Ans: It is not mandatory that if anyone is getting coffee in a particular morning, it is efficient enough to satisfy the need in future as well, not even if anyone will need coffee in future as well. As the level of the satisfaction changes with the future options, therefore, the desire for the coffee is insatiable over the time(Steedman, 2016). But, on the other hand, the temporary wants for the coffee are not insatiable if the person uses to get as long as the preference is not changing.
Good and services are scarce because resources arescarce
Ans: The Goods and the services are the outcomes and the resultant fact of the resources. Therefore, the abundant amount of the resources or the limited amount of the resources is the determinant factor of the produced goods and services as well as the scarcity and the non-scarcity fact of the goods and services(Mehta, 2013). Therefore, the statement “scarcity of the resources is the determinant fact of the scarcity of the Goods and Services” is the most justified fact.
It is the nature of all economic problems that absolute solutions are defined
The scarcity is the determinant fact of the Economic problem when wants exceed the limit of the resources in a relative manner. Meeting the wants and needs of everybody is not possible, so it is not possible to solve the economic condition for all. If all the needsare fulfilled, then no price will be charged for any wish or want. At the same time, if there will be no unfulfilled wish or want, then there will not be any economic resource available(Mehta, 2013). If all the wantsare fulfilled, we are not going to pay for any output, and there will not be any existence of the economic resources. Then the statement of the existence of the economic problem with the existence of the wish or want of the human being is justified and well defined.
2. Empirical estimates
0.6 For the physician’s services: The price elasticity of the demand is recognized as the inelastic if Demand elasticity (ED) < 1 but at the same time greater than Zero. Based on the fact the 0.6 for the demand of the physician services leads to the fact of 10 percent decrease in the level of price to the 6 percent increases in the demanded quantity(Wacker, et al., 2014). But if the ED is equal to 1, then the price elasticity of the demand is anelastic unit.
- For foreign travel: The International Travel market operates based on the econometric models of demand. Based on the above explanation of the Demand elasticity, it can be stated that if there will be a reduction in the airfares and other tariffs associated with the travel and the tourism business in the global market, then 40 percent increase in the demand for the foreign travel and the demand for the travel destination will get increased in a proper manner(Wacker, et al., 2014).
0.1 For newspaper: Based on the fact of the income and the quantity elasticity, it can be stated that the as the income level of one person increases by 10 percent, the quantity demand for the newspaper also will get increased by 1 percent(Wacker, et al., 2014).
1.2 For radio and television receivers: As the demand for Elasticity (ED) > 1 in that case (1.2), then it can be stated that Radio and the television receivers are the approximately unitary or the elastic in nature. In this case, the percentage change in the quantity is much greater than the percentage change in the price. For every 1 percent rise in the price of the unit, the demand will fall by 1.2 percent, which is the nature of the perfect elastic unit demand(Wacker, et al., 2014).
Based on the above discussion, it can be stated that the elastic demand value less than 1 defines the fact of the inelasticity, while more than one refers to the unitary elasticity concept and the value more than 2 refers to the highly elastic unit demand value.
3. Explanation of the statements:
a) Before economic growth, there were too few goods; after growth, there is too little time
Ans: It has been observed that before the important economic growth, people used to live at the survival level. There were too little goods to enjoy. Therefore, the demand for the more good production increased. But, after the positive economic development, the number of the goods has been increased abundantly. The term abundance refers to the fact of alittle time to consume the extra goods and also refers to the term that already there are many goods to enjoy. So, the problem has been raised by the use of the time to make the goods, and the use of the time to relax and enjoy the abundant goods after the economic growth(Reny, 2015). Thus the fact before economic development too few goods, and after growth, too little time to enjoy the goods is justified one.
b) It is irrational for an individual to take the time to completely rational in economic decision-making
Ans: As per the rational choice theory, the economic people always use to take the logical decisions based on the situation. These decisions use to offer the people with great satisfaction and benefit. Considering every factor in the economic decision is thebase of the rational economic decision making. At the same time, the people does not take time into consideration in the economic decisions are referred as the irrational economic decision making. The people who use to search for the alternative options before purchasing the desired goods without thinking of the time is called the rational economic decision-making, which focuses on the economic value. On the other hand, people those do not search for the alternate options and move towards the nearest store to purchase the desired item without wasting the time and without the consideration of the economic value are called the irrational economic decision makers(Reny, 2015).
Mehta, L., 2013. The Limits to Scarcity: Contesting the politics of allocation. London: Routledge.
Reny, P., 2015. A characterization of rationalizable consumer behavior. Econometrica, 83(1), pp. pp.175-192.
Steedman, I., 2016. On De-escalating Wants. Welfare and Values: Challenging the Culture of Unconcern,p. p.157.
Wacker, J., Hershauer, J., Walsh, K. & Sheu, C., 2014. Estimating professional service productivity: atheoretical model, empirical estimates, and external validity. International Journal of Production Research, 52(2), pp. pp.482-495.