In terms of persuasion, scarcity is a tool that can communicate to an audience what they gain but also what they lose. In my opinion, it gives the audience information and more control to make an informed and effective decision (McLean, 2010, p. 538-539).
Scarcity can describe any item or service which cannot be obtained equally by every individual. The benefit of scarcity in persuasion is it shows the value of making a decision based on not only what stands to be gained, but also what may be lost. McLean describes reminding a customer that a product or service may be limited in availability as a method of employing scarcity, demonstrating to the customer that they may lose their chance if they aren’t convinced before someone else comes along (2010).
In the first chapter of Cocktail Party Economics, the main focus is on Scarcity and how it affects
We the consumer would rather pay less for any product that is needed or want. Ultimately we are the reason for high prices as well as low prices. Prices of products do not always stay the same and more popular products have higher prices than less popular products. These fluctuations, high prices and low prices are from the idea of supply and demand. Supply and demand defines the effect that the availability of a particular product and the desire or demand for that product has on price. Generally, if there is a low supply and a high demand, the price will be high (Investopedia). To understand the idea of supply and demand, the understanding of supply and the understanding of demand must be defined. The Law of Supply states that at higher prices, producers are willing to offer more products for sale than at lower prices, also that the supply increases as prices increase and decreases as prices decrease (Curriculum Link). The Law of Demand states people will buy more of a product at a lower price than at a higher price, if nothing changes, at a lower price, more people can afford to buy more goods and more of an item more frequently, than they can at a higher price and that at lower prices, people tend to buy some goods as a substitute for others more expensive (Curriculum Link). In todays economics these ideas are seen frequently in everyday life. The laws of supply and demand are seen in many ways in the company Apple Inc. Each year Apple Inc unveils a long awaited mobile operating system and IPhone. We can also see many aspects of the law of supply and demand in Nike Inc’s Jordan Brand. Jordan Brand has released a number of...
In economics, one particular arresting feature is the price effect on demand and supply. With the aim of making commodity and service market balance, demand and supply should tend to be balanced. That is economic equilibrium. Market equilibrium is the situation where quantity supplied and quantity demanded of a specific commodity are equal at the certain price level. As the diagram shows below, at price1 quantity supplied is more than quantity demanded, a surplus occurs. That means producers cannot sell all the products because of the small demand of market. Then price will start to fall. At price 2, quantity demanded is more than quantity supplied, a shortage occurs. In this situation, more products will be made because producers have pursuit
Scarcity – When you create a demand by limiting availability. We see this, especially during the holidays, with that “must have it” toy. The desire to own it is increased a lot simply by it being hard to find. The same goes for high-end items. When the Toyota Prius first came out, the demand was much higher than the supply. Because they were hard to get,
Supply and demand is what determines the market prices of various items. Whenever the supply is greater than demand the price of the goods must be lowered. In contrast, when the demand is greater than the supply the prices must go up (Funk & Wagnalls New World Encyclopedia, 2015). For example, during the Mardi Gras season in Louisiana the price of a top notch King Cake is about $19.99-$29.99. Depending on the seller. Once Mardi Gras season is over and Lent season begins the demand decreases resulting in the
In Book V of his Principles Alfred Marshall describes what he denominated “the state of arts” of the supply and demand theory, going back to Adam Smith. The assumptions then applied to the matter was that 1) demand comes first, 2) it is up to sellers to adjust supply to demand through production and marketing, a mix where the price is the most important variable, and 3) production takes time. Marshall summarized statement 2 later on into a single phrase: “Production and marketing are parts of the single process of adjustment of supply to demand” (MARSHALL, 1919, p. 181). This set of three assumptions suggests that the basic principles of the supply and demand theory collected by Marshall from the work by some scientists were then laid, requiring therefore only the right mathematical treatment.
For a business there is many things that is required to keep that business in business. For example, In order to create an product the society must choose upon it’s needs, resources they have and choose based on it’s populations and other available markets.The factors of production is the readiness to work on answer the three questions (What?, How? and For whom?) in order to solve the problems of scarcity. Scarcity is a resources that is limited, a certain number of available resource. Or paying simple bills to stay in a certain location. To sell a certain amount products could affect how a business runs, based off it’s amount of products sold. And then there is the factors of production. Land isn’t about where something is located in a area, Labor is the help to create things, and Capital and Entrepreneurship are necessary to a business.
Let’s begin with the theory of Scarcity. The concept of demand is directly relatable to the scarcity of an item. Let’s look at Jackson Pollock’s work for example. If only 20 paintings were available created by Jackson Pollock, there would be a much greater demand than if you could purchase them easily at your local art gallery.
The two candidates both referenced scarcity in terms of the voters missing out if they voted for their opponent. Scarcity is the tendency for people to attempt at obtaining an offer that is available in the present, but may be futuristically out of reach. For instance, Trump declared that he had a vast knowledge of business expertise that could be useful in pulling the nation out of its monumentous amount of debt. He then accused Clinton of not possessing any of this financial know-how, concluding that she would not have the skill set to help the nation in this capacity. In effect, Trump was stating that if the voters chose her instead of him, they would be willingly permitting the nation to be brought to financial ruin. This tactic could have made voters find him appealing in the sense that he should be able to pull the country out of debt due to his uncanny ability to pull himself out of his own financial
Price is the values entirety that consumers trade for the advantages of having or utilizing the product or services. Different places and cultural have different spending culture. Therefore the price has to be relevant according to the product offer because it can reflect the image of a
Ultimately the supplier, not the consumer, determines the value of a good. The supplier is familiar with the average amount of labor incorporated into a good and, therefore, the market adjusts value accordingly, including the probability of outliers. Even though a consumer may associate a higher value to a good than the actual market price due to the consumer’s perceived usefulness, this is not factored into the price. The producer considers all factors of production and labor and prices the good accordingly.
In pure market economy, price has been set by price mechanism where it coordinates the interaction between demand and supply resulting in a price changes. According to an economist Adam Smith (1776), in his book “The Wealth of Nations”, price mechanism is likened to be an “invisible hand” which will coordinates the decision made by consumers and suppliers while the economic system are working automatically. However, the theory of “invisible hand” is not absolute. The market economies requires institution such as government to implement policies and making decisions to maintain market and avoid market failure like monopoly and negative externalities. Therefore, government interventions are clearly crucial in the economy to maintain the balance of price and maximizing social and economic welfare to improve market outcomes. For example here, government intervention such as decision to guarantee continuous supplies of horticultural products such as fruit and vegetables will not only complement the high demand and needs for nutrition by society, but it will also avoid price to increase du...