ANALYSIS OF ECONOMIC HYPOTHESIS

As energy prices increase the demand for Manufacturing will decrease.           

Energy is the underpinning of all modern society, as our economy and society would grind to a halt without gasoline, electricity, and other similar forms of energy.  Since energy plays such an important role in the nation’s economic health, it’s such an essential that despite its scarcity and high demand, we all have to use for our mere survival too and thus indispensable. These amongst other reasons make energy have an inelastic or relatively inelastic price, elasticity of demand (measure used in economics to show the responsiveness, of the quantity demanded of a good or service to a change in its price). For instance, the price elasticity of demand of oil is -0.4 and that of car fuel is -0.25 in the short run and -0.64 in the long run.

Bearing this in mind, energy being a vital input in manufacturing is that quite challenging to manage especially in the wake of increasing energy prices. For instance, in the fourth quarter of the 2008 USA fiscal year—when the cost of energy was quite high ($147.30 for a barrel of oil)—the manufacturers had a tough time in balancing production and profitability. For instance, the investment in industrial equipment further declined to -0.19 from -0.12 in the third quarter. It is also in this period that unemployment hit a high of 6.1 percent. This arose as manufacturers tried to cut down on costs of production thereby laying off workers and producing less as compared to other periods as they tried to cover up for the increased cost of energy.

Also during this time, some industries had to close down due to their unprofitability –an aftermath of increased energy prices. In the long run, there is low demand and low supply of output since manufacturers increase their products prices as the consumers lack money (due to unemployment) to purchase at the prevailing market prices. This leads to a decline in the demand for manufacturing.

 

“WASHINGTON (AP) — Two important economic reports delivered bad news about unemployment and wholesale prices.

 

For the complete Essay, please order with us now!

Are you looking for a similar paper or any other quality academic essay? Then look no further. Our research paper writing service is what you require. Our team of experienced writers is on standby to deliver to you an original paper as per your specified instructions with zero plagiarism guaranteed. This is the perfect way you can prepare your own unique academic paper and score the grades you deserve.

Use the order calculator below and get ordering with idealtermpapers.com now! Contact our live support team for any assistance or inquiry.

Type of paper Academic level Subject area
Number of pages Paper urgency Cost per page:
 Total:

Purchase Guarantee

Why ORDER at IdealTermPapers.com?

  • Educated and experienced writers.
  • Quality, Professionalism and experience.
  • Original Content writing.
  • Best customer support.
  • Affordable Pricing on orders.
  • Thorough research.
  • Ontime delivery of finished work.
  • 100% plagiarism free papers.

Reasonable Prices

  • To get the best quality papers isn’t cheap so don’t trust extremely low prices.
  • We can’t claim that we have unreasonably low prices because low prices equal to low quality.
  • Our prices are good and they balance with the quality of our work.
  • We have a Moneyback guarantee.

Original and Quality work

  • Our writers are professionals and they write your paper from scratch and we don’t encourage copy pasting.
  • All writers are assessed and they have to pass our standards for them to work with us.
  • Plagiarism is an offence and it’s never tolerated in our company.

Native Writers plus Researchers

  • Our writers are qualified and excellent and will guarantee the best performance in your order.
  • Our team has writers who have master's and PhD qualifications who can handle any assignment
  • We have the best standards in essay writing.

We have been in business for over 7 syears

  • We have always served our customers from all over the world and they have continued to order with us.
  • We value our customers since they have trusted us to do their assignments.
  • We are competent in our writing gained from experience over the years
  • Our company has 24/7 Live Support.

You will get

  •  Custom Admission Essay written by competent professional English writers.
  •  Free revisions according to our revision policy if required
  •  Paper format:  275 words per page, Times New Roman font and size 12, doublespaced text and1 inch margin
  •  On time delivery and direct order download
  •  Privacy guaranteed

We can help you:

  •  acquire a comprehensive professional presentation.
  •  get a unique and remarkable content as per your instructions.
  •  Get an additional portion that can be included to your existing presentation;
  •  turn your work in to an eyecatching presentation with well communicated ideas.
  •  improve your presentation to acquire the best professional standards.