Business Econimics Research Paper Example | Topics and Well Written Essays - 750 words

Business Econimics - Research Paper ExampleThe elasticity of demand might affected in like manner Since trust is hard to earn and easy to lose, it is likely that once a company has violated ethical standards, consumers will be afraid of bring onting burn again and will avoid the company at the first sign of trouble, making their offerings more elastic. Costs might raise Contractors, suppliers and distri preciselyors might ask for a higher price for their service and goods, either because they feel that the companys bargaining position has declined, as insurance against potential malfeasance, or as compensation for the inevitable PR hit. Ethical issues argon more likely to occur in deregulated markets (Palast, 2002 Palast, 2004). This is for a few reasons. First The kind of behavior that occurs in a deregulated market tends to already be less constrained by conventional ethics, meaning that companies that thrive in that environment be already likely to behave unorthodox and poss ibly unscrupulous cultures and practices. Second Regulation, both by NGOs and government, tends to make companies more sensitive to the impacts of what they are doing it might be seen by someone. One of the major ways that Enron managed to entrance away with so much was the inaction of shareholders and the failure of accounting firms, auditors and regulators (Palast, 2002 Berenbeim, 2002). Consider a rise in demand for calculating machine chips and potato chips. Potato chips are pure luxury items They are highly elastic, because people can afford to go without potato chips. Computers and the chips that make them up, in contrast, are essential items for business, homes, political agencies and NGOs. The deliverance runs on telecommunication technology, credit card processing, etc. that is all done through computerized systems. A reduction in demand cant hurt computer makers much, disrespect the relatively high cost of producing computer chips to potato chips, because they are so e ssential. In the short run, a potato chip maker might crop more potatoes, run lines faster, or pack factories more tightly to increase harvestingion. A computer chip maker might do the same thing, but while the occasional green or stale potato chip is not a threat to the potato chip makers reputation, a failing computer chip costs headaches in bad reviews, tech support headaches and so on. Buying new factories for potato chips is likely to be easy Buying and the right way fitting new factories and training new personnel for computer chips is much harder. In the long run, of course, the potato chip company has to bear in drumhead that a new health fad, a change in the taste buds and palates of customers, a marketing campaign, or something else might harm the demand for their product. They cant afford to get too much excess. Further, potato chips must be strictly identified according to USDA standards, meaning rebranding is more difficult than it might seem and companies are less flexible than an initial review would suggest (2009). However, computer chip makers know that, in the long run, their product cannot help but grow, as the third base World catches up and computerizes more and more and as more and more products need computer chips. Thus, its clear that a product that is elastic might have some more flexibility in dealing with spikes, but tends to have difficulty maintaining those spikes and therefore taking advantage of them, whereas a less elastic product might take longer to get