Automotive Production Levels Research Paper Example | Topics and Well Written Essays - 2000 words

Automotive Production Levels - Research Paper Example It is price which either actually exists in market or market is moving towards it assuming no market impediments or government policies exist to prevent equilibrium to be reached. At equilibrium price, both forces do not have any tendency to change, provided all other things remain same (Abel and Bernanke, 2005). If all the conditions of free market are met, then GM should have been able fetch sales of 2478001 units of vehicles in second quarter. If compared this figure with its last two quarter units sold, there exits a gap of 87000 vehicles in all. Price elasticity of demand is a quantitative measure (coefficient) showing percentage change in the quantity demanded with respect to percentage change in price (Leamer, 2009). Price elasticity for second quarter of 2012 for GM motor is – 0.95. Negative coefficient of price elasticity shows negative relation of price and demand. Categorization is made based on where the elasticity coefficient lies from 0 to 1. Price elasticity of GM being -0.95 refers to inelastic demand. It refers; only large proportionate change in price can bring small proportionate change in demand which results in steeper demand curve. This kind of elasticity is usually for products that are considered necessities and importance of vehicle has no question in every aspect from business to personal lives. Since it has inelastic demand and there lies a gap between equilibrium price and average unit price of about $ 4000.00 i.e. 19,558 - 15,527 respectively, management can increase profitability by increasing it price that will finally benefit its total revenue which is going negative. If calculated elasticity is considered to be of another brand say A than comparison would guide the future strategy. For instance, if competitor’s brand A increases prices by the differential discussed in previous question, then there is little chance that its customers would switch to ours due to inelastic demand.

Analyse article Essay Example | Topics and Well Written Essays - 250 words - 1

Analyse article - Essay Example Evidently, the nutrient cycles have been changed, the biomass has reduced considerably and a lot of carbon dioxide is being emitted (Passary 1). In the coming years, Passary writes that the impacts on the environment are expected to worsen, especially if nothing is done to reverse these statistics (1). The plant and animal species have greatly reduced (Passary 1). In line with this thought, it is only fair that humans put much efforts towards reclaiming the lost lives and even the habitats that would have otherwise been home to animals and humans. Among the major improvements that humans can adopt is to adopt safer forms of agricultural practices. It is also recommended that the urban designers adopt a more efficient approaches such as using the landscape corridors (Passary 1). These approaches will help improve and sustain the existing ecosystems. These approaches will also lead to higher biodiversity. Passary, Anu. Dwindling Forest Habitats Threatening Worlds Ecosystems Says Study. Tech Times, 23 Mar. 2014. Web. 24 Mar. 2015.