Business Economics Essay Example | Topics and Well Written Essays - 1250 words - 1

Business Economics - Essay Example Demand elasticity varies with necessities versus luxuries. Since necessities are important they tend to be inelastic, which means even though prices change by much the quantity demanded does not change by much because of the said reason (Mankiw). If water prices suddenly increased, we do not expect consumption of water to plummet sharply. On the other hand, luxuries tend to be elastic. If for example the price of yacht suddenly increased, the affluent can opt for other hobbies causing a much decline in the quantity of yacht demanded. The availability of close substitutes also affects the elasticity of demand. Specifically, commodities with available close substitutes such as butter are observed to have an elastic demand (Mankiw). It can easily be replaced by margarine; therefore demand for such product will decline by a great magnitude. On the other hand, since egg has no close substitute demand for such is inelastic. Lastly, time horizon also constitutes a factor in the price elasticity of demand. â€Å"Goods tend to have more elastic demand over long time horizons† (Mankiw). This is explained by the fact that longer time horizon gives consumers more flexibility to alter their consumption pattern such that goods whose price are increased or are relatively higher can be replaced. Wage is one of the costs in production. Depending on the type of industry, wage can be a huge part of the total cost. In the insurance industry for example, where the cost of sales people and managers are paid through wages, wage increase can represent a huge boost of the total cost. Since wage is considered a variable cost, an increase in wage constitutes an increase int he variable cost. With fixed amount of production or quantity, an increase in wage also increases the average variable cost. Also, since an additional payment in wage is an increase in the extra cost for every output produced, by definition marginal cost also

Developing a technology model for a social entrepreneur case that you Research Paper

Developing a technology model for a social entrepreneur case that you can pick - Research Paper Example First factor addresses the social problems or needs by approaching some innovative ideas and techniques. Second factor addresses significant awareness and efforts towards balancing responsibility in the best interest of stakeholders. The main aim of social entrepreneurship is to achieve social and environmental goals by working for the welfare of society. On the other hand, the phenomenon of social entrepreneurship is based on entrepreneurs. The term â€Å"social entrepreneurs† is accredited to the class of people who recognise the social difficulties and try to solve them with the help of primary entrepreneurship approaches. In present world, there are many organizations that are using social entrepreneurship models for the welfare of human being. Social entrepreneurs come in many types ranging from large non-profits to single-person causes. They also come in differing orientations such as non-profit or profit making organizations. (examples) The essence of any social entrepreneurial venture is to solve a problem or cater to a need in the society. Social entrepreneurs all over the world use different ways to solve the problems that concern our society such as poverty, illiteracy, and pollution. The use of technology in this cause has been able to develop some excellent business models and social development ventures. Technology entrepreneurship (or Technopreneurship, as commonly called today) and social innovation make an excellent combination for the development of the world. Many small, medium or large social ventures have sprouted up which use technology to solve the problems. With the help of PCs, notebooks, PDA, mobile phone devices, GPS, and wireless technologies, entrepreneurs find it easy to come up with innovative and cost effective solutions. One such venture is â€Å"Engineers without borders† which we will study in this paper to see how they add value through technology to their target market and society in general. â€Å"Engineers without