Impact of Income Growth, Tariff Rate, and Inflation on Schmeckt Gut Demand

Running head: ECONOMICS ASSIGNMENT
Economics Assignment
Name of the Student
Name of the University
Author Note

1ECONOMICS ASSIGNMENT
Executive Summary
The main focus of this paper is to provide a comprehensive
explanation and analysis of the demand of Schmeckt Gut. The paper will
majorly focus on the growth of inflation rate, income growth and tariff rate
growth. Inflation poses a number of economic consequences to
Government, firms and households. There are a number of causes and
forms of inflation. Tariffs and income levels play an important role in
facilitating the demand of goods and services. Also, a regression analysis
will be undertaken to examine the existing relationship among the
dependent and independent variables. The paper will provide
recommendations and draw a conclusion on the main aspects discussed.

2ECONOMICS ASSIGNMENT
Table of Contents
Introduction................................................................................................................................3
Demand and Supply...................................................................................................................3
Demand and Supply and supply curve.......................................................................................4
The aggregate supply/aggregate demand...................................................................................4
Aggregate supply shocks............................................................................................................6
Aggregate supply shocks curve..................................................................................................6
The Phillips curve......................................................................................................................7
The Laffercurve..........................................................................................................................7
SECTION 2................................................................................................................................8
Impacts of Tariff rate growth, Inflation and Yon Schmeckt Gut demand.................................8
Part B........................................................................................................................................10
Regression Analysis.................................................................................................................10
Recommendations....................................................................................................................13
References................................................................................................................................14
Appendix.................................................................................................15

3ECONOMICS ASSIGNMENT
Introduction
A number of factors need to be given prudent attention by Schmeck Gut if the launch is to
be very successful and they include; the economic levels of Growth, inflation and import
tariffs. There is need for much focus to be put on the various projections and their overall
influence in the market for schmeck Gut to succeed in the market. Afonso and Kazemi
(2017), defines a tarrif as a tax which is put on goods that have been imported. In most cases
taxes are imposed for purposes of achieving particular objectives like consumer protection
and growth of the domestic industries. Akimaya and Dahl (2018), defines inflation as the
general persistent rise in the goods and services prices. There various negative effects brought
about by inflation such as exchange rate depreciation. Alan & Stuart (2011), defines income
increase as the general consumer disposable income improvement. Basing on whether the
good is a necessity, inferior, given or normal, as income increase there is an improvement on
the overall levels of purchasing power. Thus the level of inflation, income growth and tariff
levels affect or determine the overall movement of the supply curve, aggregate demand
curves, Phillip’s curve and Laffer curve. In other words where there non cases of inflation or
tariffs, demand increases as the level of income rises. Additionally, tariffs increase is usually
brought about by increases in the levels of income depending on whether they are high or
marginal. Also, Bolshaw (2012), states that tariffs and incomes are affected by an increase in
the level of inflation.
Demand and supply
A five percent (5%) increase in the level of income may lead to shortages due to the increase
levels of demand of a particular product, Hence for Schmeck Gut to ensure that it can supply
enough in the area of operation; it has to ensure that more factors of production such as