business economics
BUSINESS ECONOMICS
Assignment 1
Case study: Mintel batteries report
a) What happened to sales of batteries in the period 2004-8? Provide a quantitative estimate. How do you explain the fact that over that period the amount of batteries sold increased whereas the value of sales declined? From figure 20 we can see that the volume of sold batteries from 2004 (584 million batteries) to 2008 (611 million batteries) has increased by 27 million batteries. During that period of time the volume has slightly raised, where in 2006 was the highest volume of batteries sold 620 million batteries. Being a difference the value at 2004 to 2008 prises has decrease, started with £450m in 2004 and falling down to £391m in 2008. Here the conclusion which we can drew, as the prices of the batteries fall down , the volume or the demand for them will go up and the way around. The competitors selling batteries are too many, that makes the price of them goes down as the demand is too high and consumers have got big selection. We consider that as price elasticity of demand, where the elasticity measures the extent to which demand will change. Where we have % change in demand greater than % change in price, we have elastic demand same as in this case. In those recent years, the market for batteries sold has become bigger as producers of batteries have increased under the influence of huge demand of batteries. The prices of batteries had felt down because of that and also competition is pretty high. Because of the low prices of the batteries, the sales still increasing, because of need of batteries for all technologies this required batteries in order to work.
Figure 21.We can see there are several classifications as purchasing batteries made by adult population, number of buyers of batteries and number of batteries purchased per buyer. They all have slightly increased by approximately 1% or
Assignment 1
Case study: Mintel batteries report
a) What happened to sales of batteries in the period 2004-8? Provide a quantitative estimate. How do you explain the fact that over that period the amount of batteries sold increased whereas the value of sales declined? From figure 20 we can see that the volume of sold batteries from 2004 (584 million batteries) to 2008 (611 million batteries) has increased by 27 million batteries. During that period of time the volume has slightly raised, where in 2006 was the highest volume of batteries sold 620 million batteries. Being a difference the value at 2004 to 2008 prises has decrease, started with £450m in 2004 and falling down to £391m in 2008. Here the conclusion which we can drew, as the prices of the batteries fall down , the volume or the demand for them will go up and the way around. The competitors selling batteries are too many, that makes the price of them goes down as the demand is too high and consumers have got big selection. We consider that as price elasticity of demand, where the elasticity measures the extent to which demand will change. Where we have % change in demand greater than % change in price, we have elastic demand same as in this case. In those recent years, the market for batteries sold has become bigger as producers of batteries have increased under the influence of huge demand of batteries. The prices of batteries had felt down because of that and also competition is pretty high. Because of the low prices of the batteries, the sales still increasing, because of need of batteries for all technologies this required batteries in order to work.
Figure 21.We can see there are several classifications as purchasing batteries made by adult population, number of buyers of batteries and number of batteries purchased per buyer. They all have slightly increased by approximately 1% or
References: Samuelson.P, Nordhaus.W. (1995),Economics, fifteenth edition, McGraw-Hill, Inc. Powell.R, (1993), Economics for professional and business studies, second edition McConnell. C. (1999), Economics principles, problems, and policies, fourteenth edition, McGraw-Hill