McEachern's Contemporary Economics, demand is defined as a relation showing the quantities of a good that consumers are willing and able to buy at various prices per period (Page 100). On the other hand, supply is defined as a relation showing the quantities of a good producers are willing and able to sell at various prices during a given period (Page 130). The equilibrium price is reached when the quantity consumers are willing and able to buy matches the quantity producers are willing and able to sell (Page 162). Substitutes are products that can be used in place of each other (Page 118). While elasticity is another word for the responsiveness of a product (Page 108), a product that is insensitive to changes in price or income is considered inelastic (Page 109). Normal goods make up most goods and increase in demand as income increases (Page 117).
Diamonds are considered a normal good since demand increases when income increases. As China's middle class increases, the demand for diamonds continues to rise in soaring numbers, but the limited supply of these diamonds gets diminished quicker. Although they are a normal good, diamonds have a price elasticity of 0.5 and substitutes inferior to them, causing them to be inelastic. Olivia Goldhill claims producers are "scraping the bottom of their assets" because the supply of these precious stones are fading. Now-a-days, De Beers claims the success rate of finding a diamondiferous mine is 1 percent. By 2019, diamond production is predicted to fall by 1.9 percent each year. Diamond demand is overtaking supply. The decrease of supply will in turn increase the equilibrium price of diamonds within the market. The unavoidable result of the struggle for diamonds is an increase in price. Prices will rise for the conceivable future because populations continue to grow as does disposable incomes. .
My opinion regarding the issue of the shortage of diamond supply is that we need to rely on new methods of retrieving diamonds.
Capability is not very high, due to the high cost and space availability on the plain. ... Water carriers are usually long distance and low value. ... Only motor carriers have high accessibility. ... First of all, cost of service is the supply of the price and value of service is the demand of price. ... For example, the cost for shipping diamonds will be way higher than shipping forest. ...
Increased supply. ... Consequently shops which deal in expensive and choice objects tend to congregate together; and those which supply ordinary domestic needs do not. ... The link between clusters and competitive advantage will be analysed using Porter's Diamond Model. ... PORTER'S DIAMOND Porter (1990) proposed the Diamond Model, which provides four primary conditions that ought to be met for a firm to be internationally competitive. These are described as factor conditions, firm strategy, structure and rivalry, demand conditions and related and supporting services (includ...
The English businessman and financier Cecil Rhodes founded the modern diamond industry and controlled the British South Africa Company, which acquired Rhodesia and Zambia as British territories. ... Because of its reliance on external sources of demand and investment opportunities, Western capitalism penetrated virtually all parts of the Third World and eventually laid down the foundations of dominance-dependence relationship structures between North and South which tended to engender and perpetuate underdevelopment in the Third World....
High temperatures and low rainfall have reduced surface water resources – fewer plants can grow (soil erosion). ... Crops that need more water than the area can supply are being grown for export. ... Minerals are in short supply and now deserts are being exploited for their hidden wealth. In the Namib Desert there are resources such as lithium, tin, zinc, lead and diamonds which have caused permanent scars and a ghost town of Kolmanskop. ... Hotels and new settlements also put water pressure on the local limited supply in Dubai. ...
This is due in part of their high levels of disposable income but also because younger consumers are more prepared to try new products. ... The rest of the UK market is supplied by retailers own label products, notably Boots, Superdrug, Asda, Tesco, Sainsbury and Safeway. 4.2 Marketing Strategy Table 1.1 below, shows the price comparison between the competing brands Table 1.1 Recommended Retail Price Comparison Gillette Mach3 Turbo Wilkinson Sword's FX Diamond Superdrug's own Triple blade razor Lynx Triple Blade Razor Asda's own Triple blade razor &pou...
The maintenance of a current account surplus, in order to pay back debt, was achieved at the cost of restricting growth and therefore import demand. ... Both consumer and business confidence levels are improving, confirmed by an increase in private sector credit demand, which is resulting in increased private sector investment as well as consumption spending. ... The Reserve Bank has repeatedly stressed that its role in making South Africa more attractive for foreign capital is to curb the rate of growth in the money supply, avoid excessive reliance on an inflationary expansion of bank cre...
That random fencing off has meant that today, land and population settlement pressures are high. ... Even a conservative calculation of the ratio at 33% masks a very high dependence for export earnings on a few crops, which are unstable in price and output, and the high requirement for budgetary expenditures. ... Obviously, debt-servicing at current levels carries high social costs. ... One-third of all water installations were damaged in 1994, and 25% of people in rural areas (in which 94% of the population live) have no access to safe drinking water. 6 000 child deaths every year from di...
Too much or too little precipitation, change in temperature, or high pressure systems create hazards which affect people all over the world. ... A heatwave is defined as a period of abnormally hot weather often accompanied by high humidity. ... Demand for electricity soared as people turned up air conditioning and fridges, but the high demand for this was a problem for nuclear power stations particularly in France and Germany which relied on river water for cooling. ... The cause of the 2003 heatwave was summer anticyclones which are areas of high pressure, and give clear, calm weather. ... It...
The comfort of our present work places, looks, at the first sight, like an advantage, while, in fact, it's a sad truth about our lives, the center of which shifted from "Home Sweet Home" to the upper floors of Diamond Towers. ... In short, the combination of technology and high performance workplace practices leads to more skilled work and high quality jobs for workers in different fields (Eileen Appelbaum, 2001). ... Within this model stress can be said to be experienced when the demands from the work environment exceed the employees" ability to cope with (or control) them. ... Work-r...