Economics for Business Prospects for Faculty

Question: Describe about the Economics for Business for Prospects for Faculty. Answer: Introduction This study has been focused to the concept of Economics for business. In this respect, this study has aimed to the demand and supply of a particular product. The particular product has been chosen as the dairy products of Australia. The demand for the dairy products in Australia has been increasing over the time. This will in turn reflect the production of the dairy products of the country (Australia 2014). Moreover, with the rise in the demand for a particular product, there occur or arise two possible situations, which have been discussed in this study. In this context, this study also focused to the factors, which can affect the demand as well as the supply sides of the market of dairy products. The affecting factors such as the income level of the consumers, their demographic situation etc have been mentioned in this study (Bowen and Sosa 2014). Demand and supply of dairy products in Australia and the factors that affect the demand and supply sides of the market According to the statement of Bruneel et al. (2012), the Australian consumer dairy manufacturing items are such as milk, butter, yoghurt and butter. With the increase in time, the demand for the dairy products has been increasing in Australia. The overall retail volume of the dairy products and the growth of the business has also been increased within the industry. The valuation growth for the dairy products has been increased by 5.4%. In addition, the trend of the per capita consumption has been rising significantly over the past two decades. These trends of the consumption of dairy products depend upon the taste and preferences of the buyers. These demand choices for the dairy products reflect the supply of the products. In the words of Bruneel et al. (2012), based on this taste and preferences of the consumers, the producers aimed to the manufacturing procedure. In addition, the consumers are also looking for the development of the products, the flavour and the quality of the deli vered goods, packaging as well as the innovations etc. It is known that the increase of the demand for a particular product will effectively enhance the supply of the product. As mentioned by Doidge, Segal and Gospodarevskaya (2012), the per capita consumption of milk has been reached to the highest peak. Therefore, it can be mentioned that there may arise two situations. Due to the rise in demand, the supply of the products may fall. Moreover, the price of the dairy products will also increase. In case of giffen goods, with the rise in price of the products, the demand for the product will not change. This violates the rule of the law of demand as mentioned by Klerkx and Nettle (2013). Therefore, it can be stated that if the milk products in Australia is assumed as the giffen goods, then the increase in price will not reduce the sale of the particular product. On the contrary, if the dairy products are not seemed to the giffen goods, then the rise in price will reduce the demand for the products. Moreover, in case of giffen goods, incom e effect compensated the substitution effect (Klerkx and Nettle 2013). Figure 1: Demand for the giffen goods (Source: Created by author) From the above figure, it can be observed that in case of the giffen goods, with the rise in the price of the products, the demand for the product will not decreased. It will remain same (Obizhaeva and Wang 2013). Therefore, with the rise in price from P0 to P1, the demand will also increase from Qo to Q1 and therefore, the demand curve is upward sloping. In order to discuss the affecting factors, it will be helpful to identify how these factors influence the demand and the supply of the dairy products in Australia. As per the statement of Roberts and Schlenkera (2013), the production of dairy items depends upon the regional distribution within the country. In addition, growth of the population also influences the total sales. As a result, to maintain the sales volume, the demand for the product will also significantly increase. Therefore, it can be observed that the supply of dairy products is higher in urban areas of Australia compared to the rural area and the products are supplied from the rural areas to urban areas (Zilberman et al. 2012). Moreover, the demand for the dairy products also depends upon the income level, as prices are the reflecting determinant of demand for the dairy products. Higher the level of income, greater will be the demand for the products. Hence, in case of giffen goods, the higher income group people can afford the price of the manufacturing dairy products. Therefore, the supply will also increase (Roberts and Schlenkera 2013). The suppliers will be profitable. On the contrary, in case of lower income group people, they cannot afford the increasing price and therefore, in this case the supply for the dairy products will decrease. On the other hand, Obizhaeva and Wang (2013) opined that the demand for a product enhance the supply of that definite product. In this respect, it can be stated that if the demand for milk s higher than the demand for butter, then the firms require to produce more milk in order to meet the supply. Conclusion The overall study has been developed on the concept of economics for business. In this study, the demand for the dairy products in Australia has been observed. After the analysis, it can be seen that the per capita consumption of the dairy products has been increasing in Australia. As a result, to meet the demand the supply has been also increasing. On the other hand, the factors, which can influence the demand and supply of the dairy products, have been identified. In this connection, it can be stated that the demographic conditions, the growth of population can influence the demand of the dairy products as well as the supply will also influence. References Australia, D., 2014. Australian Dairy Industry.Dairy Australia. Available online: www. dairyaustralia. com. au/Industry-information/About-the-industry. aspx. Bowen, W.G. and Sosa, J.A., 2014.Prospects for faculty in the arts and sciences: A study of factors affecting demand and supply, 1987 to 2012. Princeton University Press. Bruneel, J., Ratinho, T., Clarysse, B. and Groen, A., 2012. The Evolution of Business Incubators: Comparing demand and supply of business incubation services across different incubator generations.Technovation,32(2), pp.110-121. Doidge, J.C., Segal, L. and Gospodarevskaya, E., 2012. Attributable risk analysis reveals potential healthcare savings from increased consumption of dairy products.The Journal of nutrition,142(9), pp.1772-1780. Klerkx, L. and Nettle, R., 2013. 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