The prices for these luxury goods are getting more expensive rather than
cheaper, so why are these sales escalating? Population growth is one
possibility as the greater the population, the greater the demand.
Society today is based on the fundamental concept of supply and
demand. If the demand increases the quantity supplied will rise. If
the demand decreases the quantity supplied will diminish. However, the
fluctuation in demand for all products is based on numerous factors
such as price, population, income, advertising and more influential
than price, taste. The Toronto Star printed an article on luxury items
and how these extravagant goods are now in higher demand than ever
before. Expensive brand names such as Lamborghini, Prada and Tiffany &
Co as well as castles are having a vintage year. Lavish homes in the
Toronto area that are worth $1.5 million were up 48 per cent in the
first half of 2005. Phil Soper, the president and CEO of Toronto-based
Royal LePage Real Estate Services commented after hearing about this
newfound data. "Sales in this price category have experienced the
highest year-over-year growth of all price categories since 1996."
The prices for these luxury goods are getting more expensive rather
than cheaper, so why are these sales escalating? Population growth is
one possibility as the greater the population, the greater the demand
because there are more people to contribute. As well, the
advertisement of these items on television and in films have played a
major role in heightening sales as luxury goods companies have mined
the celebrity-obsessed culture, and red-carpet events such as the
Toronto Film Festival to create huge demand for products. Income is
also a factor in the ri...
... middle of paper ...
...atisfy demand. This shortage could start an auction
atmosphere, where the demand at this price is pushed up towards the
equilibrium.
Supply and Demand
Luxury Goods
At the equilibrium, the quantity supplied meets the quantity demanded.
A surplus means that there is an excess of supply, that is, the supply
goes beyond the demand expectations. This would result in the lowering
of prices to effectively sell the supply.
Although right now they are increasing at great rates, analysts agree
that the very high end of the market will be the first to be hit if
the economy suddenly takes a nosedive, since discretionary purchases
are generally the first to go. This thought probably enters the mind
of every company head each and every day, but until that day comes
they will keep enjoying their continued success of the brilliant
concept of supply and demand.
Population continues to grow and is expected to reach an all time high in future years. There are tons of different reasons for why population is rising so quickly. In document d, it says, "Every second 5 people are born and 2 people die, a net gain of 3 people. This fact from document d shows one reason why population growth is at all time high. Document d, also states "At this rate, the world population will double every 40 years and would be 12 billion in 40 years, 24 billion in 80 years, and more than 48 billion in 120 years." This will create tons of difficulties, like the amount of food and supplies needed for the world, which will make it nearly impossible for supplies to keep pace with the population growth. Document a shows
The other assumption is that the market will constitute a few players with no new entrants with
Topic 12: Aggregate Demand and Aggregate Supply ----------------------------------------------- 1. Introduction 2. Three Key Facts about Economic Fluctuations 2.1 Fact 1: Economics Fluctuations are Irregular and Unpredictable 2.2 Fact 2: Most Macroeconomic Quantities Fluctuate Together 2.3 Fact 3: As Output Falls, Unemployment Rises 3. Explaining Short-Run Economic Fluctuations 3.1 How the Short Run Differs from the Long Run 3.2 The Basic Model of Economic Fluctuations 4. The Aggregate Demand Curve 4.1 Why the Aggregate Demand Curve Slopes Downwards 4.2 Why the Aggregate Demand Curve May Shift 5.
Population growth affects the earth just as much as it does the people. With the population continuously growing at an alarming rate, earth can’t keep up with the resources needed to survive. Eventually we will run out of oil, land to build houses, and air. The reasoning behind running out of air is if the world is covered in houses, there is no room for trees – which supplies our oxygen. The factors effecting population growth are: fertility rates, life expectancy, migration, and death rates. More and more people are migrating to North America because of the high life expectancy, average fertility rates, low mortality rates, and of course, job opportunity. Even though population growth isn’t as high as it used to be, overpopulation can still
On a day described as the ‘Flash Crash’, the U.S stock market experienced one of the most severe price drops in its history. In the matter of five minutes, the Dow Jones Industrial Index declined by 900 points, and then recouped the balk of those losses within the next 15 minutes. This unprecedented and unexplained volatility has fired public debate ever since.
How can the presence or absence of natural resources and arable land affect a nation’s economy, regardless of the type of economic system?
Diamond, Jared. Guns, Germs and Steel: The Fates of Human Societies. W.W. Norton, Los Angeles, 1994
Countries in the world hold different attitudes to the population policy, some of them tend to delay the increase of population while others introduce policies to encourage childbirth. After centuries of continual growth, which started at the first industrial revolution, the global population reached over 7 billion individuals in 2013. Research by Ezeh, Bongaarts and Mberu (2012) states that increasing population is a threat to individuals and societies by bring problems based on unsatisfied demand. The “increasing population” in this essay can be defined as net rising in birth rate during a period, especially in the poor developing countries. This essay will argue that the world cannot sustain an increasing population. The reasons for this are firstly, limited nature resources can hardly maintain huge population and environment may be polluted; next, economic problems, especially the gap between the rich and the poor can be caused by increasing demand; and lastly, social wellbeing pressures brought by population growth.
Should The United States' Government Pursue Population Policies To Protect our Quality of Life for Future Generations?
The world as we know it is slowly being depleted of its natural resources. Habitats are being destroyed, and wildlife animals are facing extinction, these are just a few of the effects of over population. Over population not only affects nature and the planet but the human way of life. Imagine a world where the water is polluted, the soil produces no crop and the air is so toxic that we can’t breathe; this is where the world is heading. Due to the fast growth of people, humanity itself faces great danger. There are solutions to over population such as Family planning and sexual education.
As populations grow so does the infuctructure. In order for population growth so do the necessary systems such as sewer, stormwater, and drinking water, these systems are put in place to minimize and lessen the damage and destruction that people cause upon the Australian ecosystem. The creation of structures like wastewater treatment plants and transfer stations are to limit the amount of pollution dumped into the environment, however, when such systems reach a critical capacity and can no longer effectively control waste, then the pollutants find their way into the ecosystem. The continual growth of Australia’s population in and around its major city’s will put increasing stress water supply. People use water for drinking, bathing, cooking,
2c RECOMMEND WITH JUSTIFICATION, NEW AREAS IN WHICH THE BUSINESS COULD BE EXPANDED WITH CONCRETE JUSTIFICATIONS (AC 2.3):
Human population growth is becoming a huge issue in our world today. The population is increasing rapidly. The reason that it is becoming a concern is because it has affected the economic, environmental, and social aspects of our world. In the film Frontline: Heat, we can see how there might not be a future for our planet unless we are able to reduce the emissions and make our world a safe place. Not only for the present but also for future generations so that they are able to live long and healthy lives.
Our world is too small for our ever rapidly growing population. One day resources will run dry and vanish, which will bring death and loss to all nations on this planet. Many researchers and scientists have confirmed that the population will reach 10 billion by the end of the century and will continue to stream upward. There are many different ways in trying to decrease population to contain global warming and assist our environmental changes. The only way to steadily succeeding, families must be the regulators of their fertility and future. Environmentalism can head in a negative direction, which may result in population control and even anti-immigrant policies. Can the developing effort of ‘population integrity’ protect our world while recognizing birth moralities?