Selected Topics

The demand which will depend on the income and expectations of the consumers on the product. The taste or preferences of the consumers will be based upon the features and quality of the product.

Supply and demand is a fundamental element of economics; it is the main support system of a market economy. Demand can be interpreted by the quantity of a product or service a consumer is desired to acquire at a given time period. Quantity demanded is the amount of product consumers are willing to purchase at a given price; the relationship between price and quantity demanded is commonly known as the demand relationship. Supply however, accounts for how much a market produces for consumers. The quantity supplied refers to the actual amount of a certain good firms are willing to supply to consumers when receiving a certain price. Having limited resources we all have to

Concerning the demand for inputs x and y used in production of a final product (N) , it is commonly stated that the price elasticity of demand for input x is directly correlated and dependent

The sale and production of a commodity depends on numerous factors and market forces. Mainly, demand and supply of that particular commodity or good. The demand and supply of the commodity in turn depends on income of the consumers, price of substitute goods, price of complementary goods, change in consumer’s taste, costs of production, increase or decrease in various taxes etc. All these market forces either increase or decrease the demand and supply of a

Demand for the product is determined by many factors, like pricing, quality, advertising and distribution.

– Average expenditure on the product or service in the identified country or geographic region for 2010, 2011 and 2013 and forecasted demand for the product or services based on these figures.

a) Economic conditions within the international markets including expenditure on overseas tourism generally and any trends in this;

They also used functional format to determine quantity demanded. In class we discussed how this can determine changes in demand vs changes in quantity demand. We also stated that demand is a horizontal summation of individual demands. Which simply means many different demands form together to create one large demand trend line. Their equation is represented as: PGT = f(LN[QGT], POPULATIONT, GDPT, LN[T], MT). The variables included in this equation are the natural logarithm of lbs in the beef market, population, GDP, Logarithm of their time dummy variables, and logarithm of monthly dummy variables. In class we used simple variables such as income, tastes, price of subs, exports, etc. to find supply and demand for the product.

It is important to recognize that consumers will buy less of a product as its prices increases. It is also often important to know whether the increase will lead to a large or small reduction in the amount purchased. Economists have designed a tool called the price elasticity of demand to measure the sensitivity of amount purchased in response to a change in price. The equation for the price elasticity of demand is that the percentage of changes in the quantity of a product demanded by the percentage change in the price that caused the changed quantity. The price elasticity of demand indicates how responsive consumers are to a change in a product price (Gwartney).

However, it is also essential for the economists to understand how demand and price relationship, in terms of quantity, varies from product to product. When we systematically scrutinize different products and services, it becomes apparent to us that the quantity demanded,

Tourism plays a vital role in economic development in most countries around the world. The industry has not only direct economic impact, but also significant indirect and influential impacts. There is agreement among experts that the travel and tourism sector is the fastest growing of global economy. According to the latest UNWTO World Tourism Barometer, international tourism receipts surpass US$ 1 trillion in 2011, growing about 3.8%up from 2010 (WTO, 2012).

Another aspect of impact of tourism on a country’s economy is that it facilitates the expansion of the market of goods and services. Foreigners come to a country willing to spend money on different goods and services, thus increasing the amounts of sales. This is a great chance for producers and service providers to receive larger profits. This concerns not only hoteliers, tour operators, and souvenir shops owners. Public transportation, retail stores of different kind, restaurants, and cafes benefit from international tourism. Obviously, if these industries are in demand, businesses will be expanding. On the one hand, it means that more money is paid to the budget. On the other hand, profits generated by the owners are spent inside the country, affecting almost all the fields of the

The Travel and Tourism industry is still one of the largest single businesses in world commerce and its importance is widely recognized. The tourism industry is now one of the largest sectors earning foreign exchange. In the face of many benefits, many countries have started assigning due weight age to the tourism industry in their national development agenda. Tourism is an industry that operates on a massively broad scale: it embraces activities ranging from the smallest sea-side hotel; to air-lines, multi-national hotel chains and major international tour operators. Originally, non-traditional industries such as tourism emerged as a solution to strike a balance between ecology and industry

Increase in price usually lowers demand; consequently, a decline in price escalates demand. In a demand curve, shows a sloping arc. On the other hand, QD is a point demand. It shows amount demanded at a point along the demand curve; therefore, it does not depend on the market equilibrium. It is significant in determining investment activities. In addition to that, the quantity demanded can only be calculated after sales to determine the condition of the business. It is; therefore, crucial to emphasize that demand depends on the quantity demanded (Myers, 2004).

EVALUATION OF INBOUND AND DOMESTIC TOURIST EXPENDITURE IN TERMS OF THEIR CONTRIBUTION TO GDP IN THE YEAR 2014