Evaluation of Demand Elasticity Research Paper Example | Topics and Well Written Essays - 2000 words

Evaluation of Demand Elasticity - Research Paper Example The value of elasticity (e) for a product lies in the range of 0 to 1. If the elasticity for a product is 0 (perfectly inelastic), then the sellers can easily manipulate changes in the price of the product. However, if the demand elasticity for the product is 1 (perfectly elastic), then the sellers must be very careful while changing the price of the product (as the demand is highly sensitive). This research paper will concentrate on the business price elasticity analysis of a Hamilton Beach 4 Speed Blender. The learnt from the paper will help the researcher to analyze the most optimal business strategy for the product (Arnold 167). Section 1: Relative Price Comparison This part of the paper will explain the relative price comparison table for the concerned product, Hamilton Beach 4 Speed Blender. This is a table that would compare the prices of the product with its close substitutes. Relative Price Comparison Table (Source: Author’s Creation) The above table explains the rela tive price comparison table for the Hamilton Beach 4 Speed Blender. The three selected locations are the different cities of Los Angeles. These are West Hollywood, Culver City and Santa Monica. The table would compare the prices of Hamilton Beach 4 Speed Blender in these three locations (prices of the same group products in three different markets in nearby geographic locations) (â€Å"Hamilton Beach 54615 Wavestation Express Dispensing Blender with 48-Ounce Jar, Black†). The two close substitute product of the Hamilton Beach 4 Speed Blender are the Hamilton Beach Big Mouth Juicer and the Hamilton Beach Stainless Steel Peeler of Fruit and Vegetable. It should be considered that there is no perfect substitute for the mixer grinder. This is the reason for which peeler and juicer are the closed substitutes of the product. The table would also compare the prices of the close substitutes of the Hamilton Beach 2 Speed Blender in the same markets (â€Å"Hamilton Beach Big Mouth Jui ce Extractor†). Before the table is analyzed, one has to understand the meaning of a substitute product. Products are substitutes of each other if the features inbuilt in the product satisfy the same type of demand (hence, utility) for consumers. Cross price relation of substitute products is positive. For example, Coke and Pepsi are substitutes of each other and thus, the rise in the price of Coke would decrease its quantity demanded (law of demand) and increase the price for Pepsi (â€Å"Hamilton Beach Stainless Steel Fruit & Vegetable Peeler – 03066†). Price of Coke Quantity Demanded for Pepsi (Source: Author’s Creation) The relative price comparison table in the above graph reflects the price differentials among the close substitutes in the three nearby markets (Hamilton Beach 4 Speed Blender, Hamilton Beach Big Mouth Juicer and Hamilton Beach Stainless Steel Peeler of Fruit and Vegetable) and almost no price differences in the same group of product (H amilton Beach 4 Speed Blender) in the chosen locations in these three markets (Culver City, West Hollywood and Santa Monica). Before the in-depth analysis, the cause for this situation can be explained by theory of simple economics. The close substitutes are actually products with different characteristic

Chronic Pain or Mental Illnesses Assignment Example | Topics and Well Written Essays - 750 words

Chronic Pain or Mental Illnesses - Assignment Example There are numerous causes of chronic pain and these including different underlying chronic pathologies such as congenital abnormalities in the structure of the spinal cord, trauma, obesity, ageing and other underlying conditions such as multiple sclerosis, AIDS and cancer. When carrying out an assessment of an individual with chronic pain, there are several issues which have to be addressed; however, among these issues there are three main questions that are important for the physician. The first question is the extent of the disease affecting the patient; the magnitude of the disease in terms of suffering and pain and how these intrude into the everyday life of the patient; and finally, whether the complaints of the patient are in coherence with the disease or if there are some signs of exaggeration indicating a psychological component to the condition of the patient. There two patients that were examined and one was a 45 year old male with a history of brachial plexus injury and the other a 75 year old woman suffering from tendonitis. The 45 year old male complains of pain that has lasted for approximately a year. The patient complains of pain that is associated with a tingling sensation in the form of an electric shock. Upon examination, the patient displays weakness in the arm and he also says he feels numbness in his right arm. The 75 year old woman has a history of tendonitis which is approximately 25 years. The patient reports pain that is predominantly in her wrist area and there is also significant swelling in the wrist area. Upon examination, the patient was found to have swelling at the area of the thumb and was diagnosed with DeQuervain’ tenosynovitis. The patients both went through a psychological examination and this indicated that there was no exaggeration of pain among these patients and it was in coherence to the medical co nditions which they were found to have. The