Demand and Supply Analysis Report
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The assignment requires a detailed analysis of demand and supply in various contexts, including economics, energy, and urban planning. The report should include references to relevant books, journals, and online resources, and provide a summary of the key findings and implications for decision-making.
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ECONOMIC PRINCIPLES
& DECISION MAKING
& DECISION MAKING
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Table of Contents
INTRODUCTION...........................................................................................................................1
QUESTION 1...................................................................................................................................1
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14
INTRODUCTION...........................................................................................................................1
QUESTION 1...................................................................................................................................1
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14
INTRODUCTION
In today world, economic conditions play an important role in doing any business and
also helps in decision making. For effective decision making the analysis of economic conditions
are necessary. This project report addresses to Board of Directors regarding launch of there new
product in Atollia. This report will provide different projections that are associated with
inflation, income and tariff rates. The impact of different predictions on demand had also been
discussed by using regression analysis. The recommendation to Board of Directors had also been
provided in each scenario regarding effects of increase in income with tariff and inflation rates.
QUESTION 1
Demand and Supply-: Demand is that how much quantity of any product is desired by
consumers. It can also be said as ability or willingness to buy any product whereas as supply is
any quantity of product where an seller agrees to sell any product at any point of time.
The law of demand states that if price of any product will increase it will lower the
demand of that product without considering any other factors (Hegetschweiler and et.al., 2017).
The Law of Supply states that if higher will be price the supplier will sell more as to
generate more revenues, all other factors remain constant.
So, in this case if inflation rates are increased by 2% demand of chocolate bars may
decrease whereas if inflation rates are increased supply of product will be more as supplier wants
to generate more profit (Bowen and Sosa, 2014). So, it can be said as there is an inverse
relationship between demand and supply of any product.
In case of tariffs which are generally an inflationary element to a country over the goods
they are exporting. Therefore, if the demand of a particular raising in a national boundary which
have been resulted in rising the number of imports for the goods (Schulp, Lautenbach and
Verburg, 2014). It is mainly relevant with the imports of petroleum products of the natural
resources which are scared at another place. Thus, with the influences of such operational wants
and needs there will be rise in the level of imports for that particular product or service.
Therefore, in tariffs prices of a commodity rises from an artificially lower rates based on the
same product as well as less competency.
As per analysing the impacts of inflation on the demand supply of a commodity in nation
where determination of wants and resources is quite helpful (Cashin and et.al., 2014). Basically,
in a certain period there have been rise in the prices of the products in a location as well as
1
In today world, economic conditions play an important role in doing any business and
also helps in decision making. For effective decision making the analysis of economic conditions
are necessary. This project report addresses to Board of Directors regarding launch of there new
product in Atollia. This report will provide different projections that are associated with
inflation, income and tariff rates. The impact of different predictions on demand had also been
discussed by using regression analysis. The recommendation to Board of Directors had also been
provided in each scenario regarding effects of increase in income with tariff and inflation rates.
QUESTION 1
Demand and Supply-: Demand is that how much quantity of any product is desired by
consumers. It can also be said as ability or willingness to buy any product whereas as supply is
any quantity of product where an seller agrees to sell any product at any point of time.
The law of demand states that if price of any product will increase it will lower the
demand of that product without considering any other factors (Hegetschweiler and et.al., 2017).
The Law of Supply states that if higher will be price the supplier will sell more as to
generate more revenues, all other factors remain constant.
So, in this case if inflation rates are increased by 2% demand of chocolate bars may
decrease whereas if inflation rates are increased supply of product will be more as supplier wants
to generate more profit (Bowen and Sosa, 2014). So, it can be said as there is an inverse
relationship between demand and supply of any product.
In case of tariffs which are generally an inflationary element to a country over the goods
they are exporting. Therefore, if the demand of a particular raising in a national boundary which
have been resulted in rising the number of imports for the goods (Schulp, Lautenbach and
Verburg, 2014). It is mainly relevant with the imports of petroleum products of the natural
resources which are scared at another place. Thus, with the influences of such operational wants
and needs there will be rise in the level of imports for that particular product or service.
Therefore, in tariffs prices of a commodity rises from an artificially lower rates based on the
same product as well as less competency.
As per analysing the impacts of inflation on the demand supply of a commodity in nation
where determination of wants and resources is quite helpful (Cashin and et.al., 2014). Basically,
in a certain period there have been rise in the prices of the products in a location as well as
1
reduction in the currency rates which will have also affected economy of nation. Strategies and
planning for improving the economic conditions as well as per capita income will have
influences due to changing operational planning and determination of activities. Rise in the
prices of commodities has influenced on the income earned by an individual as they now can buy
lesser products with similar disposable income (Jacobson and et.al., 2018). As per Anglicising
rise in the inflation rates during the period of global financial crisis which has brought various
economic challenges in all nation such as GDP, inflation, interest rates and tariff rates.
Therefore, rise in the prices of commodities. Unemployment rate have affected the income
standard of an individual.
Aggregated Demand and Aggregated Supply-: Aggregate demand is total demand of
final goods and services that are provided to economy at any given time and price whereas
aggregated supply is total of final goods and services that any organisation is planning to
produce (Larondelle and Lauf, 2016).
If in future supplier thinks that there are chances of inflation so he may not sell the
products in current period so Aggregated supply of product may decrease whereas if consumer
know that there are chances for increase in inflation rates so they will demand more product in
current period. However, which in turns will provide disequilibrium in economy (Lien and
Cheng, 2014).
So, in this case where inflation rates are about to increase Schmeckt Gut may not sell
there product in market but consumer demand will increase as product is available at lower cost.
2
planning for improving the economic conditions as well as per capita income will have
influences due to changing operational planning and determination of activities. Rise in the
prices of commodities has influenced on the income earned by an individual as they now can buy
lesser products with similar disposable income (Jacobson and et.al., 2018). As per Anglicising
rise in the inflation rates during the period of global financial crisis which has brought various
economic challenges in all nation such as GDP, inflation, interest rates and tariff rates.
Therefore, rise in the prices of commodities. Unemployment rate have affected the income
standard of an individual.
Aggregated Demand and Aggregated Supply-: Aggregate demand is total demand of
final goods and services that are provided to economy at any given time and price whereas
aggregated supply is total of final goods and services that any organisation is planning to
produce (Larondelle and Lauf, 2016).
If in future supplier thinks that there are chances of inflation so he may not sell the
products in current period so Aggregated supply of product may decrease whereas if consumer
know that there are chances for increase in inflation rates so they will demand more product in
current period. However, which in turns will provide disequilibrium in economy (Lien and
Cheng, 2014).
So, in this case where inflation rates are about to increase Schmeckt Gut may not sell
there product in market but consumer demand will increase as product is available at lower cost.
2
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In relation with analysing the concept of aggregate demand which determines that, it is a
total of all expenditures in terms of government, firms, household and foreign operations.
Therefore, in analysing the demand incurred in operational practices will have appropriate
increment (Jones and Pitelis, 2015). Therefore, it ascertains the effective planning the given time
period of purchase of such goods and services.
Moreover, as per considering the concept of aggregate supply in economy which insists
that the total number of outputs to be made by a unit in determined period. However, in an
economy there is necessity of rising efficiency of small and medium size enterprises which
determines the rise of domestic production (Gopalan and et.al., 2014). Therefore, an effective
output or aggregate supply plays main role in uplifting economy stability. Thus, as demands rise
in the market which depends on the equal rise for the supply in same respect. Moreover, there
will be rise in the income of individual as per reduction made by government of tariffs.
Phillips Curve-: This concept had been derived by A.W. Philips which states that
unemployment and inflation have inverse relationship. Which states that if there is more inflation
3
Illustration 1: Example of Aggregate demand and
aggregate supply
(Source: What is the difference between aggregate
demand and aggregate supply, 2018)
total of all expenditures in terms of government, firms, household and foreign operations.
Therefore, in analysing the demand incurred in operational practices will have appropriate
increment (Jones and Pitelis, 2015). Therefore, it ascertains the effective planning the given time
period of purchase of such goods and services.
Moreover, as per considering the concept of aggregate supply in economy which insists
that the total number of outputs to be made by a unit in determined period. However, in an
economy there is necessity of rising efficiency of small and medium size enterprises which
determines the rise of domestic production (Gopalan and et.al., 2014). Therefore, an effective
output or aggregate supply plays main role in uplifting economy stability. Thus, as demands rise
in the market which depends on the equal rise for the supply in same respect. Moreover, there
will be rise in the income of individual as per reduction made by government of tariffs.
Phillips Curve-: This concept had been derived by A.W. Philips which states that
unemployment and inflation have inverse relationship. Which states that if there is more inflation
3
Illustration 1: Example of Aggregate demand and
aggregate supply
(Source: What is the difference between aggregate
demand and aggregate supply, 2018)
as it leads to economic growth in any country the people of that state may get more jobs and that
country may have more chances of employment (Hegetschweiler and et.al., 2017).
Therefore, impacts of inflation and higher tariffs will bring the impact over income of
people but there will be rise in the level of wages retained by them in a period. Thus, in respect
with this can be said that, impact of such increment in the prices of a commodity will reflect a
fruitful in rising income (Bowen and Sosa, 2014). However, it will reflect in reducing the rate of
unemployment in economy. Moreover, the applicability of this curve is mainly in the short run
on which it will bring the adequate outcomes.
While considering the trade-offs among inflation as well as unemployment which will be
helpful in observing the long run of the economic operations (Schulp, Lautenbach and Verburg,
2014). In accordance with rise in the rates of any commodity in the circulation which determines
the rise in the revenue level as well. Thus, domestic units will have higher revenue gains as
compared with the multinational organisations (Cashin and et.al., 2014). It also determines that,
consumers are price sensitive on which they go for buying comparative cheap or lower rate of
goods. Therefore, it increases chances of earning higher revenue to the domestic organisation.
Additionally, it will be helpful to the society in terms of retaining the operational
advantages as well as ascertainment of effective profitability. There has been influences of
various economic policies which in turn have the negative impacts on rising the revenue and
operational advantages (Jacobson and et.al., 2018). On the other side, propionate rise in prices of
a commodity which will result in increasing the salaries on same level (Larondelle and Lauf,
2016). Thus, the impacts of inflation play main role in uplifting the operational demand and
supply.
4
country may have more chances of employment (Hegetschweiler and et.al., 2017).
Therefore, impacts of inflation and higher tariffs will bring the impact over income of
people but there will be rise in the level of wages retained by them in a period. Thus, in respect
with this can be said that, impact of such increment in the prices of a commodity will reflect a
fruitful in rising income (Bowen and Sosa, 2014). However, it will reflect in reducing the rate of
unemployment in economy. Moreover, the applicability of this curve is mainly in the short run
on which it will bring the adequate outcomes.
While considering the trade-offs among inflation as well as unemployment which will be
helpful in observing the long run of the economic operations (Schulp, Lautenbach and Verburg,
2014). In accordance with rise in the rates of any commodity in the circulation which determines
the rise in the revenue level as well. Thus, domestic units will have higher revenue gains as
compared with the multinational organisations (Cashin and et.al., 2014). It also determines that,
consumers are price sensitive on which they go for buying comparative cheap or lower rate of
goods. Therefore, it increases chances of earning higher revenue to the domestic organisation.
Additionally, it will be helpful to the society in terms of retaining the operational
advantages as well as ascertainment of effective profitability. There has been influences of
various economic policies which in turn have the negative impacts on rising the revenue and
operational advantages (Jacobson and et.al., 2018). On the other side, propionate rise in prices of
a commodity which will result in increasing the salaries on same level (Larondelle and Lauf,
2016). Thus, the impacts of inflation play main role in uplifting the operational demand and
supply.
4
Illustration 2: Phillips Curve
(Source: Phillips Curve, 2018)
As in the case given above which states that if there is rise in inflation rate of 2% and
income of employees had been increased there are chances that demand in market will increase.
To overcome demands incurred in environment, production of chocolate bar had to be increased
by Schmeckt Gut for which they had to employ more employees (Lien and Cheng, 2014). So it
shows that there is an inverse relationship between increase in inflation rates and unemployment.
Laffer Curve-: This theory had been developed by Arthur Laffer which shows
relationship between amount of tax that had been collected by governments and tax rates that had
been charged by them. It suggests that if tax rate increase the revenue of tax also increases by
government (Jones and Pitelis, 2015). At one stage where tax rates is 100% the whole amount
earned will be paid to government at that time no one would like to work as because anything
they will earn will go to government.
5
(Source: Phillips Curve, 2018)
As in the case given above which states that if there is rise in inflation rate of 2% and
income of employees had been increased there are chances that demand in market will increase.
To overcome demands incurred in environment, production of chocolate bar had to be increased
by Schmeckt Gut for which they had to employ more employees (Lien and Cheng, 2014). So it
shows that there is an inverse relationship between increase in inflation rates and unemployment.
Laffer Curve-: This theory had been developed by Arthur Laffer which shows
relationship between amount of tax that had been collected by governments and tax rates that had
been charged by them. It suggests that if tax rate increase the revenue of tax also increases by
government (Jones and Pitelis, 2015). At one stage where tax rates is 100% the whole amount
earned will be paid to government at that time no one would like to work as because anything
they will earn will go to government.
5
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Illustration 3: Laffer Curve
(Source: The Relationship between Tax Rates
and Government Revenue, 2018)
In relation with analysing the operational concepts and management of various operation
which insists that there will be rise in the revenue and economic growth as the government in
any economy reduces the tax rates (Gopalan and et.al., 2014). Thus, in accordance with such
concepts it can be said that, the lower taxes will allow the consumers in making higher saving
which increases monetary circulation. Therefore, all categorises of units stated in the nation will
have chances of retaining higher revenue and earning that will reflect in economic development.
Here in this case if tariff rates are increased more tax will have to be paid to government
which means that aggregate disposable income with public will be lesser (Hegetschweiler and
et.al., 2017). So, the purchasing power of consumer will decrease from actual which in turns
affects the demand of chocolate bar that had been made by Schmeckt Gut.
Multiple regression analysis
Regression analysis on data set given such as follows:
Scenario 1
Null hypothesis (H0): There is no statistical significant difference in the mean value of
demand for energy bars and average income as well as tariff rates.
Alternative hypothesis (H1): There is a statistical significant difference in the mean value
of demand for energy bars and average income as well as tariff rates.
6
(Source: The Relationship between Tax Rates
and Government Revenue, 2018)
In relation with analysing the operational concepts and management of various operation
which insists that there will be rise in the revenue and economic growth as the government in
any economy reduces the tax rates (Gopalan and et.al., 2014). Thus, in accordance with such
concepts it can be said that, the lower taxes will allow the consumers in making higher saving
which increases monetary circulation. Therefore, all categorises of units stated in the nation will
have chances of retaining higher revenue and earning that will reflect in economic development.
Here in this case if tariff rates are increased more tax will have to be paid to government
which means that aggregate disposable income with public will be lesser (Hegetschweiler and
et.al., 2017). So, the purchasing power of consumer will decrease from actual which in turns
affects the demand of chocolate bar that had been made by Schmeckt Gut.
Multiple regression analysis
Regression analysis on data set given such as follows:
Scenario 1
Null hypothesis (H0): There is no statistical significant difference in the mean value of
demand for energy bars and average income as well as tariff rates.
Alternative hypothesis (H1): There is a statistical significant difference in the mean value
of demand for energy bars and average income as well as tariff rates.
6
Annual average
demand of energy
bars per person
Average income per
person
Tariff rate on
imports of energy
bars
Number of stores
where energy bars
are offered
106 15500 5 15
90 15810 5 15
93 16395 5 15
92 16887 5 15
91 17495 5 15
110 18282 5 16
109 19013 5 16
122 19508 5 16
82 19898 10 16
84 20276 10 16
102 20702 10 17
92 21550 10 17
115 22197 10 20
112 22330 10 20
109 22754 10 20
148 23619 7.5 20
143 23855 7.5 20
139 24452 7.5 20
158 24941 7.5 23
142 25514 7.5 23
158 25948 7.5 23
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.95593
R Square 0.91381
Adjusted R Square 0.8986
Standard Error 7.81914
Observations 21
ANOVA
7
demand of energy
bars per person
Average income per
person
Tariff rate on
imports of energy
bars
Number of stores
where energy bars
are offered
106 15500 5 15
90 15810 5 15
93 16395 5 15
92 16887 5 15
91 17495 5 15
110 18282 5 16
109 19013 5 16
122 19508 5 16
82 19898 10 16
84 20276 10 16
102 20702 10 17
92 21550 10 17
115 22197 10 20
112 22330 10 20
109 22754 10 20
148 23619 7.5 20
143 23855 7.5 20
139 24452 7.5 20
158 24941 7.5 23
142 25514 7.5 23
158 25948 7.5 23
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.95593
R Square 0.91381
Adjusted R Square 0.8986
Standard Error 7.81914
Observations 21
ANOVA
7
df SS MS F
Significance
F
Regression 3 11019.2 3673.07 60.0775 2.94899E-09
Residual 17 1039.36 61.1389
Total 20 12058.6
Coefficien
ts
Standar
d Error t Stat
P-
value Lower 95%
Upper
95%
Lower
95.0%
Upper
95.0%
Interce
pt -12.16 11.3076
-
1.0754
0.2972
2
-
36.0171936
11.696
8
-
36.017
11.696
8
Averag
e
income
per
person 0.00484 0.00182
2.6652
1
0.0163
2
0.00100815
3
0.0086
7
0.0010
1
0.0086
7
Tariff
rate on
import
s of
energy
bars -6.457 1.04162 -6.199
9.7E-
06
-
8.65459314
-
4.2594
-
8.6546 -4.2594
Numbe
r of
stores
where
energy
bars
are
offered 4.07244 1.8978
2.1458
8
0.0466
1
0.06843385
2
8.0764
5
0.0684
3
8.0764
5
Interpretation:
The over all interpretation of regression analysis states that there is an effect of demand
for energy bars if there are any changes in tariff rates and average income of Schmeckt Gut as O
value is more than .05 which is .29722.
Whereas if it had been analysed individually it states that average income and no. of
stores does not have any impact on demand as there P value is less than .05, but the thing that is
affecting is the tariff rates that had been increased by Government. As it has been mentioned
above in Laffer curve if there is increase in tax rates there are chances that purchasing power of
consumer gets affected.
Predictions on the basis of several indicators are enumerated below:
8
Significance
F
Regression 3 11019.2 3673.07 60.0775 2.94899E-09
Residual 17 1039.36 61.1389
Total 20 12058.6
Coefficien
ts
Standar
d Error t Stat
P-
value Lower 95%
Upper
95%
Lower
95.0%
Upper
95.0%
Interce
pt -12.16 11.3076
-
1.0754
0.2972
2
-
36.0171936
11.696
8
-
36.017
11.696
8
Averag
e
income
per
person 0.00484 0.00182
2.6652
1
0.0163
2
0.00100815
3
0.0086
7
0.0010
1
0.0086
7
Tariff
rate on
import
s of
energy
bars -6.457 1.04162 -6.199
9.7E-
06
-
8.65459314
-
4.2594
-
8.6546 -4.2594
Numbe
r of
stores
where
energy
bars
are
offered 4.07244 1.8978
2.1458
8
0.0466
1
0.06843385
2
8.0764
5
0.0684
3
8.0764
5
Interpretation:
The over all interpretation of regression analysis states that there is an effect of demand
for energy bars if there are any changes in tariff rates and average income of Schmeckt Gut as O
value is more than .05 which is .29722.
Whereas if it had been analysed individually it states that average income and no. of
stores does not have any impact on demand as there P value is less than .05, but the thing that is
affecting is the tariff rates that had been increased by Government. As it has been mentioned
above in Laffer curve if there is increase in tax rates there are chances that purchasing power of
consumer gets affected.
Predictions on the basis of several indicators are enumerated below:
8
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In the case of prediction, it has been analysed here that, there will be relationship between
the variables tested. It indicates that, there will be changes in the income, tariffs, inflation etc. as
they are inter-related with each other (Bowen and Sosa, 2014). Thus, in respect with such
outcomes, professionals of Schmeckt Gut were suggested to make necessary policies and
planning for their products and services in terms of retaining higher profitability in the coming
period.
Additionally, there will be rise in level of revenue of an individual as per rise in the
operational gains as well as favourable tax policies (Schulp, Lautenbach and Verburg, 2014).
Therefore, it has been estimated that, there will be rise in the employment rate in economy which
will bring rise in earning capacity. Moreover, there will be higher monetary circulation as
consumers will willing to buy the commodities in the market.
Scenario 2
Regression analysis on data set given such as follows:
Null hypothesis (H0): There is an significant statistical difference in the mean value of
demand for energy bars and average income as well as tariff rates.
Alternative hypothesis (H1): There is an significant statistical difference in the mean
value of demand for energy bars and average income as well as tariff rates.
Annual average
demand of
energy bars per
person
Average income
per person
inflation rate Adjusted income
after inflation
Tariff rate on
imports of
energy bars
106 16275 2% 15950 10
90 16601 2% 16268 10
93 17215 2% 16870 10
92 17731 2% 17377 10
91 18370 2% 18002 10
110 19196 2% 18812 10
109 19964 2% 19564 10
122 20483 2% 20074 10
9
the variables tested. It indicates that, there will be changes in the income, tariffs, inflation etc. as
they are inter-related with each other (Bowen and Sosa, 2014). Thus, in respect with such
outcomes, professionals of Schmeckt Gut were suggested to make necessary policies and
planning for their products and services in terms of retaining higher profitability in the coming
period.
Additionally, there will be rise in level of revenue of an individual as per rise in the
operational gains as well as favourable tax policies (Schulp, Lautenbach and Verburg, 2014).
Therefore, it has been estimated that, there will be rise in the employment rate in economy which
will bring rise in earning capacity. Moreover, there will be higher monetary circulation as
consumers will willing to buy the commodities in the market.
Scenario 2
Regression analysis on data set given such as follows:
Null hypothesis (H0): There is an significant statistical difference in the mean value of
demand for energy bars and average income as well as tariff rates.
Alternative hypothesis (H1): There is an significant statistical difference in the mean
value of demand for energy bars and average income as well as tariff rates.
Annual average
demand of
energy bars per
person
Average income
per person
inflation rate Adjusted income
after inflation
Tariff rate on
imports of
energy bars
106 16275 2% 15950 10
90 16601 2% 16268 10
93 17215 2% 16870 10
92 17731 2% 17377 10
91 18370 2% 18002 10
110 19196 2% 18812 10
109 19964 2% 19564 10
122 20483 2% 20074 10
9
Annual average
demand of
energy bars per
person
Average income
per person
inflation rate Adjusted income
after inflation
Tariff rate on
imports of
energy bars
82 20893 2% 20475 10
84 21290 2% 20864 10
102 21737 2% 21302 10
92 22628 2% 22175 10
115 23307 2% 22841 10
112 23447 2% 22978 10
109 23892 2% 23414 10
148 24800 2% 24304 10
143 25048 2% 24547 10
139 25675 2% 25161 10
158 26188 2% 25664 10
142 26790 2% 26254 10
158 27245 2% 26700 10
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.7803742368
R Square 0.6089839495
Adjusted R Square 0.5655377217
10
demand of
energy bars per
person
Average income
per person
inflation rate Adjusted income
after inflation
Tariff rate on
imports of
energy bars
82 20893 2% 20475 10
84 21290 2% 20864 10
102 21737 2% 21302 10
92 22628 2% 22175 10
115 23307 2% 22841 10
112 23447 2% 22978 10
109 23892 2% 23414 10
148 24800 2% 24304 10
143 25048 2% 24547 10
139 25675 2% 25161 10
158 26188 2% 25664 10
142 26790 2% 26254 10
158 27245 2% 26700 10
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.7803742368
R Square 0.6089839495
Adjusted R Square 0.5655377217
10
SUMMARY OUTPUT
Standard Error 16.1848608525
Observations 21
ANOVA
df SS MS F Significanc
e F
Regression 2 7343.47645
39101
3671.73822
69551
14.0169579
702
0.00021367
38
Residual 18 4715.09497
46614
261.949720
8145
Total 20 12058.5714
285714
Coefficie
nts
Standar
d Error
t Stat P-value Lower
95%
Upper
95%
Lower
95.0%
Upper
95.0%
Intercep
t
-
7.145392
1215
23.17828
1815
-
0.308279
6291
0.761408
6746
-
55.84115
52416
41.55037
09987
-
55.84115
52416
41.55037
09987
Adjuste
d income
after
inflation
0.005665
1936
0.001069
9807
5.294668
8088
4.928358
5565852
9E-005
0.003417
2475
0.007913
1397
0.003417
2475
0.007913
1397
Tariff
rate on
imports
of
energy
0 0 65535 #NUM! 0 0 0 0
11
Standard Error 16.1848608525
Observations 21
ANOVA
df SS MS F Significanc
e F
Regression 2 7343.47645
39101
3671.73822
69551
14.0169579
702
0.00021367
38
Residual 18 4715.09497
46614
261.949720
8145
Total 20 12058.5714
285714
Coefficie
nts
Standar
d Error
t Stat P-value Lower
95%
Upper
95%
Lower
95.0%
Upper
95.0%
Intercep
t
-
7.145392
1215
23.17828
1815
-
0.308279
6291
0.761408
6746
-
55.84115
52416
41.55037
09987
-
55.84115
52416
41.55037
09987
Adjuste
d income
after
inflation
0.005665
1936
0.001069
9807
5.294668
8088
4.928358
5565852
9E-005
0.003417
2475
0.007913
1397
0.003417
2475
0.007913
1397
Tariff
rate on
imports
of
energy
0 0 65535 #NUM! 0 0 0 0
11
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Coefficie
nts
Standar
d Error
t Stat P-value Lower
95%
Upper
95%
Lower
95.0%
Upper
95.0%
bars
Interpretation
The conclusion from above table of regression analysis states that as P value is more than
.05. So, there is effect of increase in income and tariff rates on demand of energy bar that is
provided by Schmeckt Gut. If it is seen individually than also they are affecting demand as P
value of income after inflation is approx. 4.93 which is very higher. This can be dangerous to
launch product if this analysis is considered in evaluation. On the other, the significant value is
less than 0.05 which determines there is a significant relationship between such variables.
Recommendations to Board of Directors
Scenario 1
As per scenario 1 the increase in income is not affecting demand as such but tariff rates
can affect, so BOD must go through future policies of Government regarding tax rates and then
launch product will incur losses in near future. In this case the hypothesis which have been
determined here are comparatively bringing outcomes that R square of 91.38% as well as P value
of maximum outcomes are less than 0.05. Thus, in this case there are strong evidences against
the null hypothesis (Larondelle and Lauf, 2016). Moreover, the acceptance to the alternative
hypothesis which indicates that there is relationship between the variables.
Moreover, if the changes incurred in tax rates or inflation there will be impacts on the
income earned by an individual. Similarly, professionals and BOD has been directed to wait till
changes incurred in the governmental policies. Schmeckt Gut will have growth in the future time
as if a fruitful planning and decision has been made by the in relation with retaining the higher
revenue as well as consumer backups (Lien and Cheng, 2014). There will be positive as well as
negative changes in the policies for tax rates in the country. Along with this, BOD makes pre
planned strategies for dealing in both situations which is necessary due to there is relationship
between each variable.
Scenario 2:
As per Scenario 2 the effect of increase in taxes, inflation and tariffs will not affect the
income level of individual. Thus, as per considering the outcomes determined in the multiple
12
nts
Standar
d Error
t Stat P-value Lower
95%
Upper
95%
Lower
95.0%
Upper
95.0%
bars
Interpretation
The conclusion from above table of regression analysis states that as P value is more than
.05. So, there is effect of increase in income and tariff rates on demand of energy bar that is
provided by Schmeckt Gut. If it is seen individually than also they are affecting demand as P
value of income after inflation is approx. 4.93 which is very higher. This can be dangerous to
launch product if this analysis is considered in evaluation. On the other, the significant value is
less than 0.05 which determines there is a significant relationship between such variables.
Recommendations to Board of Directors
Scenario 1
As per scenario 1 the increase in income is not affecting demand as such but tariff rates
can affect, so BOD must go through future policies of Government regarding tax rates and then
launch product will incur losses in near future. In this case the hypothesis which have been
determined here are comparatively bringing outcomes that R square of 91.38% as well as P value
of maximum outcomes are less than 0.05. Thus, in this case there are strong evidences against
the null hypothesis (Larondelle and Lauf, 2016). Moreover, the acceptance to the alternative
hypothesis which indicates that there is relationship between the variables.
Moreover, if the changes incurred in tax rates or inflation there will be impacts on the
income earned by an individual. Similarly, professionals and BOD has been directed to wait till
changes incurred in the governmental policies. Schmeckt Gut will have growth in the future time
as if a fruitful planning and decision has been made by the in relation with retaining the higher
revenue as well as consumer backups (Lien and Cheng, 2014). There will be positive as well as
negative changes in the policies for tax rates in the country. Along with this, BOD makes pre
planned strategies for dealing in both situations which is necessary due to there is relationship
between each variable.
Scenario 2:
As per Scenario 2 the effect of increase in taxes, inflation and tariffs will not affect the
income level of individual. Thus, as per considering the outcomes determined in the multiple
12
regression of data base. Thus, it represents that the R square is of 0.60898 which is 60.90% has
been analysed (Hegetschweiler and et.al., 2017). Moreover, in relation with analysing the
outcomes of P value which is comparatively higher than the level of 0.05. However, it can be
said that, there will be acceptance to the null hypothesis. In respect with the same, it can be
analysed here that, there is no relationship between the variables.
In addition, BOD has been suggested that, they do not make any dependency in terms of
planning a decision making there will not be any impact of governmental planing and operational
increment in this process (Schulp, Lautenbach and Verburg, 2014). Therefore, all the planning
and operational determination will be based on without considering the changes in the
governmental plans and policies.
CONCLUSION
This report concludes the differences that are created in demand if factors like Tariff rates
and increase in income arises. With the help of regression and multiple regression analysis this
report sums up that how much demand will be affected if there are changes in these factors. This
report also concludes that launching of new product may be risky if tariff rates are increased to
higher level. No. of stores does not affect more on increase or increase of demand as per
regression analysis shown in this report. This report also concludes that inflation rate may cause
decrease in demand as if there is increase in prices there are chances that consumer may purchase
another option and it may decrease demand of energy bar sold by Schmeckt Gut.
13
been analysed (Hegetschweiler and et.al., 2017). Moreover, in relation with analysing the
outcomes of P value which is comparatively higher than the level of 0.05. However, it can be
said that, there will be acceptance to the null hypothesis. In respect with the same, it can be
analysed here that, there is no relationship between the variables.
In addition, BOD has been suggested that, they do not make any dependency in terms of
planning a decision making there will not be any impact of governmental planing and operational
increment in this process (Schulp, Lautenbach and Verburg, 2014). Therefore, all the planning
and operational determination will be based on without considering the changes in the
governmental plans and policies.
CONCLUSION
This report concludes the differences that are created in demand if factors like Tariff rates
and increase in income arises. With the help of regression and multiple regression analysis this
report sums up that how much demand will be affected if there are changes in these factors. This
report also concludes that launching of new product may be risky if tariff rates are increased to
higher level. No. of stores does not affect more on increase or increase of demand as per
regression analysis shown in this report. This report also concludes that inflation rate may cause
decrease in demand as if there is increase in prices there are chances that consumer may purchase
another option and it may decrease demand of energy bar sold by Schmeckt Gut.
13
REFERENCES
Books and Journals
Bowen, W. G. and Sosa, J. A., 2014. Prospects for faculty in the arts and sciences: A study of
factors affecting demand and supply, 1987 to 2012 (Vol. 1025). Princeton University
Press.
Cashin, P. and et. al., 2014. The differential effects of oil demand and supply shocks on the
global economy. Energy Economics. 44. pp.113-134.
Gopalan, S. S. and et.al., 2014. Health sector demand-side financial incentives in low-and
middle-income countries: a systematic review on demand-and supply-side effects. Social
science & medicine. 100. pp.72-83.
Hegetschweiler, K. T. and et.al., 2017. Linking demand and supply factors in identifying
cultural ecosystem services of urban green infrastructures: A review of European studies.
Urban Forestry & Urban Greening. 21. pp.48-59.
Jacobson, M. Z. and et.al., 2018. Matching demand with supply at low cost in 139 countries
among 20 world regions with 100% intermittent wind, water, and sunlight (WWS) for all
purposes.Renewable Energy. 123. pp.236-248.
Jones, G. and Pitelis, C., 2015. Entrepreneurial imagination and a demand and supply-side
perspective on the MNE and cross-border organization. Journal of International
Management. 21(4). pp.309-321.
Larondelle, N. and Lauf, S., 2016. Balancing demand and supply of multiple urban ecosystem
services on different spatial scales. Ecosystem Services. 22. pp.18-31.
Lien, L. C. and Cheng, M. Y., 2014. Particle bee algorithm for tower crane layout with material
quantity supply and demand optimization. Automation in Construction. 45. pp.25-32.
Schulp, C. J. E., Lautenbach, S. and Verburg, P. H., 2014. Quantifying and mapping ecosystem
services: demand and supply of pollination in the European Union. Ecological Indicators.
36. pp.131-141.
Online
What is the difference between aggregate demand and aggregate supply. 2018. [Online].
Available through :<https://www.quora.com/What-is-the-difference-between-aggregate-
demand-and-aggregate-supply>.
Phillips Curve. 2018. [Online]. Available through
:<https://global.handelsblatt.com/opinion/flexible-german-unions-bend-the-phillips-curve-
839628>.
The Relationship between Tax Rates and Government Revenue. 2018. [Online]. Available
through :<http://www.nber.org/chapters/c11222.pdf>.
14
Books and Journals
Bowen, W. G. and Sosa, J. A., 2014. Prospects for faculty in the arts and sciences: A study of
factors affecting demand and supply, 1987 to 2012 (Vol. 1025). Princeton University
Press.
Cashin, P. and et. al., 2014. The differential effects of oil demand and supply shocks on the
global economy. Energy Economics. 44. pp.113-134.
Gopalan, S. S. and et.al., 2014. Health sector demand-side financial incentives in low-and
middle-income countries: a systematic review on demand-and supply-side effects. Social
science & medicine. 100. pp.72-83.
Hegetschweiler, K. T. and et.al., 2017. Linking demand and supply factors in identifying
cultural ecosystem services of urban green infrastructures: A review of European studies.
Urban Forestry & Urban Greening. 21. pp.48-59.
Jacobson, M. Z. and et.al., 2018. Matching demand with supply at low cost in 139 countries
among 20 world regions with 100% intermittent wind, water, and sunlight (WWS) for all
purposes.Renewable Energy. 123. pp.236-248.
Jones, G. and Pitelis, C., 2015. Entrepreneurial imagination and a demand and supply-side
perspective on the MNE and cross-border organization. Journal of International
Management. 21(4). pp.309-321.
Larondelle, N. and Lauf, S., 2016. Balancing demand and supply of multiple urban ecosystem
services on different spatial scales. Ecosystem Services. 22. pp.18-31.
Lien, L. C. and Cheng, M. Y., 2014. Particle bee algorithm for tower crane layout with material
quantity supply and demand optimization. Automation in Construction. 45. pp.25-32.
Schulp, C. J. E., Lautenbach, S. and Verburg, P. H., 2014. Quantifying and mapping ecosystem
services: demand and supply of pollination in the European Union. Ecological Indicators.
36. pp.131-141.
Online
What is the difference between aggregate demand and aggregate supply. 2018. [Online].
Available through :<https://www.quora.com/What-is-the-difference-between-aggregate-
demand-and-aggregate-supply>.
Phillips Curve. 2018. [Online]. Available through
:<https://global.handelsblatt.com/opinion/flexible-german-unions-bend-the-phillips-curve-
839628>.
The Relationship between Tax Rates and Government Revenue. 2018. [Online]. Available
through :<http://www.nber.org/chapters/c11222.pdf>.
14
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