Essentially what the tax causes is the consumers’ income to be decreased by 5%. The all-good sales tax is better for the consumers’ utility because there is less skewing of income compared to the non-food sales tax where there are relative price
When you first walk through the doors of Shoprite, you notice the floral section. The selection of flowers, plants and bouquets is numerous and attractive to the eye. The departments of the store are thought out intensively. The produce section, the meat section, the juices and dairy products and the main course in the middle of the store, the grocery products such as junk foods and other packaged goods are put in the middle of the store. In “The Supermarket: Prime Real Estate” by Marion Nestle, the author describes grocery stores as: “You are supposed to feel daunted-bewildered by all the choices and forced to wander through the aisles in search of the items you came to buy” (pg 496).
Sales tax is income elastic; because of this fact, consumers have a higher tax incidence and carry the burden. From this, it has been evidenced that the tax burden is vertically unequitable and can be seen as unfair to the less fortunate. Sales tax is paid by retailers, which is dependent upon their sales revenue. However, since the demand of consumers is inelastic and can vary based on market and economic conditions, this burden is felt more by lower income individuals and families. However, it is important to note that the tax burden is independent of who physically pays the tax.
In recent years’ consumers have turned their attention to a healthier way of life and the so called “health-related labels” in products. The healthier body effect delivered by organic and natural foods has became a worldwide mission to many consumers and competitive firms. As previously noted this awareness is expected to increase up to 16% by 2020 (Burnaby, 2015). In order to understand the relationship between higher product quality and supply; reflecting in increase in price and the fluctuation, if any in demand, we will analyze revenue growth, sales, customer behaviors and the price elasticity of demand a company like Whole Foods has experienced for the last 5 years. As noted above this The graph below illustrates the total revenue the
Your Name _____________Jialiang Wang_________________________________________ 1. Do you identify the author and title of the article? Yes, I do. “The Supermarket: Prime Real Estate” by Marion Nestle 2.
Marion Nestle deftly writes how supermarkets use various strategies and techniques in order to gain maximum profit as well as sustaining customer interest at the same time in her article, “The Supermarket: Prime Real Estate.” This issue is compelling yet perhaps obscure within many people’s lives as they often naturally regard supermarkets as locations to buy food and necessities. Nestle is conspicuously trying to change that simplistic perspective as she claims supermarkets are in fact the ones in control and that the shoppers are victims of buying “too much”, adding to one of America’s widespread health problems, obesity. Through relevant data, outlines of marketing strategies, and effective explanation, Nestle presents a matter that readers
The demand is more likely to be elastic for which
Almost all the packed food products that I see today at the grocery stores have some claims mentioned on their labels such as “no trans fat”, “less sugar”, “more fiber”, “antioxidant rich” etc. Some of them also claim for the product being good for heart and immune system. I had always blindly trusted these words on the food labels and bought them thinking that whatever it says on the label is 100% true and the packet contains exactly what it claims for. But the article “10 Mega trends in the Supermarket” by Bonnie Liebman has totally surprised me by revealing the true meaning of some of these food trends in the food industry. I had always fallen for products which says “0 trans fat” because these fats are not good for heart.
As transportation of milk became easier with the introduction of different cars design specifically for liquids, the railroad companies started to take advantage of dairy farms by having high prices for transporting. In addition to such a burden on the farmers, they also had to spend their money on the cows and feed for the production of milk. After subtracting all of these expenses, it can be seen that the farmers are losing a lot of money in this industry. This left the dairy farmers in a quagmire. They either had to boycott the railroads and deal with slower transportation through other means like cars or they just had to deal with the high prices of the transportation.
madagascar Madagascar is a lively country with a beautiful culture, many may know Madagascar from the children’s cartoon movie. It has a wide variety of animals and forest for the animals to live in. A lot of people go to Madagascar for vacation for the weather and open environment although its not always safe, in many ways. but something more fascinating than that is the country’s history.
Jim is worried about if he’ll be able to stay in business if the price of gas returned to four dollars per gallon. In order to answer Jim’s questions, we can use the slope of the slope to measure the ratio of change in a variable as a percentage of the original amount of the variable. Then we’re going to investigate the price elasticity of demand. Price elasticity of demand tells us the percentage change in quantity demanded in response to a one percent change in price. This is important to us because this measure is used in economics to show the responsiveness, or
All around the world, the concept of patriotism has become a questionable subject as many people are not certain of what it actually is. Simply put, patriotism is loyalty to one’s country, and accepting both the good and bad aspects of that country. As the true meaning of patriotism is constantly questioned, it has had Americans come to realize the significant number of issues the United States has. Not only has America lost the values of the Founding Fathers, the economy also has been dissatisfying Americans for years and the country is laying in a remarkable amount of debt. Political parties also cause great disunity and hatred between the people.
Also butter is considered to have high source of fat, health conscious people may reduce the consumption which could affect its sales. PEST Analysis Political:Since the budget range is decontrolled, no political effects are envisaged. Economic: • The Increasing per capita income of the whole population is resulting a higher disposable income to the consumer as the purchasing power parity is also rising
In this era of globalization, the supermarket industry is one of the common investment sectors. It is also forming retail common categories of food products such as fresh and meats, poultry and seafood, fresh fruits and vegetables, canned and frozen foods as well as various dairy products. Investment in this industry can be profitable if succeed but bear in mind that risk still exists if monitoring process is not carried out. Therefore, Professor Michael E. Porter from Harvard Business School has introduced a tool for purposes of analysis potential industry which is the most profitable and potential. Porter stated that five forces are deciding an industry either beneficial at future or it will become a case study and commerce practice (Porter, M.E., 2008).
