AM 5104 ECONOMIC ENVIRONMENTASSIGNMENT 1right8555990August 27, 2018Soakai veaTUPOU TERTIARY INSTITUTE1000000August 27, 2018Soakai veaTUPOU TERTIARY INSTITUTEArticle 1TITLE: Global Water Scarcity and How to Deal with it.AUTHOR: Dr. Rosie Bosworth.NEWSPAPER TITLE: New Zealand Herald.
PAGE NUMBER: 1DATE OF PUBLICATION: 31ST July 2015.SUMMARYThis article, varies aspects of Global Water Scarcity and how to deal with it. as population continues to rise, water quality at the globe are exhausted.Prediction that by 2030, only 60% of water left for human satisfaction of needs and wants.Horticulture, they equipped solar power to benefits farmers to grow more crops per drop.
Government, businesses, producers and consumers worldwide starts to promote water secure for the future.ECONOMIC ANALYSISDIAGRAMSource: https://newlifeparties.wordpress.com/2012/04/13/the-power-of-choice/ http://www.slideshare.
net/SonalJappy/scarcity-of-water.Scarcity is a fact where we allocate resources to our unlimited need and wants. This means that we cannot have everything we desired to have.
Therefore, when our resources are less than our needs and wants, we somehow have to make choice by choosing among the best alternatives. As I mention above about the definition of scarcity, it reveals that scarcity is a major threat to the world of economic. So there’s no room for mistake in order to have impacts on the economy. This shows that theirs excess using of water on earth depleting wellbeing of an economy. Many governments begin to find ways to use water wisely. Fortunate, throughout this article it shows that many countries have made their choices. Such as, in Hong Kong they choose to use seawater to flush their toilets instead of using fresh water. This situation reveal the choices made by the governments due to scarcity.
As it shows on the diagram, water scarcity around the world rise so more decisions of different countries will have to be made. article 2TITLE: Lamb Price Bolstered by Supply and Demand.AUTHOR: Sally. RaeNEWSPAPER TITLE: New Zealand HeraldPAGE NUMBER: 1DATE OF PUBLICATION: 2th March, 2017.
SUMMARYLamb price bounded their normal trend, rises 10 cents per kg over 1 month.Tight supply generated the increase in price.Lamb price dropped from January to February for 25 cents per kg.Suppliers had bid price higher, result in lamb price tightening.New Zealand beef prices increase due to lack of supply from and to Australia.ECONOMIC ANALYSISDIAGRAM243311982205500Source: http://www.
investopedia.com/university/economics/economics3.aspOne of the most useful and well-known economics concepts is supply and demand.
To define supply and demand, according to Hayes, he stated, “Demand refers to how much (quantity) of a product or service is desired by buyers and supply represents how much amount of a certain good producers are willing to supply when receiving a certain price”. In addition, when a product is put in market, producers (supply) and consumers (demand) most agree at price where they can both satisfy their needs and wants in which we get to a point of “equilibrium” where supply and demand meets. Therefore, producers must make sure that they will have profit from the products they produced. On the other hand, consumers can be able to buy the products. It shows that price of lambs starts to rise 10 cents per kg per month caused by suppliers’ scramble try to fill Easter orders which followed by low butchery rate. If this situation continues to rise it will contribute to bring risks for the producers in the future. This is because, they set their price above the price equilibrium which will lead to more supply than demand and will lead to excess supply. article 3TITLE: AUCKLAND MAKE BIG CONTRIBUTION TO SKY CITY PROFIT JUMP.
AUTHOR: Anne. Gibson.NEWSPAPER TITLE: New Zealand HeraldPAGE NUMBER: 1DATE OF PUBLICATION: 19th January, 2016.SUMMARY Auckland’s strong economy help forecast the profit of Sky City Entertainment to rise up by 30%.
Strong Tourism, busy casino and good restaurants are factors which help Sky City earn more profit.Performance of EBITDA and NPAT levels are expected to rise due to strong trading performance.Risks regards of Sky City being able to leverage large investment in Adelaide.ECONOMIC ANALYSISDIAGRAMSOURCE: https://www.boundless.com/economics/textbooks/boundless-economics-textbook/competitive-markets-10/production-decisions-in-perfect-competition-67/marginal-cost-profit-maximization-strategy-251-12348/When we talk about firm theory and profits, we assume producers to seek ways to maximize their profits. Producers must try to understand economic profit because of cost of production and also plays an important role in how scarce resource are allocated in an economy.
The Sky City is under a “perfect competition” which means that different companies are competing or producing the same product. This indicates that the companies should competes for the consumer’s money and interest. The graph above shows the profit maximization ruled which is applied to a perfect competitive market. The rule of a perfect competition is that demand = price = average revenue = marginal revenue. Producers may know that their point of maximization when their marginal revenue is equal to the marginal cost. When marginal revenue is greater than the marginal cost, the profit maximizing producer may try to produce more output in order to get more profits.referencesBosworth, R.
(2015). Global water scarcity and how to deal with it. Retrieved 10th August, 2018 from http://www.nzherald.co.nz/element-magazine/news/article.cfm?c_id=1503340&objectid=11489319Economics.
Retrieved on 1st August, 2018 from http://www.investopedia.com/university/economics/economics3.aspGibson, A. (2016). Auckland makes big contribution to Sky city profit jump. Retrieved 7th August, 2018 from http://www.
nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11576075Marginal Cost Profit Maximization Strategy. Retrieved on 4th August, 2018 from https://www.boundless.com/economics/textbooks/boundless-economics-textbook/competitive-markets-10/production-decisions-in-perfect-competition-67/marginal-cost-profit-maximization-strategy-251-12348/Power of Choice. Retrieved on 2nd August, 2018 from https://newlifeparties.
wordpress.com/2012/04/13/the-power-of-choice/Rae, S. (2017). Lamb price bolstered by supply and demand. Retrieved 5th August, 2018 from http://www2.
nzherald.co.nz/the-country/news/article.cfm?c_id=16&objectid=11810499Scarcity of Water.
Retrieved on 3rd August, 2018 from http://www.slideshare.net/SonalJappy/scarcity-of-water