Average Daily Consumption Levels

The provided content discusses the concept of supply and demand, specifically focusing on average consumption levels daily. It highlights various sources that provide insights into this topic, including academic articles, websites, and reports. The content emphasizes the importance of understanding supply and demand in determining market prices and availability. Additionally, it touches upon related topics such as resource scarcity, lead time, and inventory- location models.

SUPPLY AND DEMAND ANALYSIS
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Table of Contents
Introduction......................................................................................................................................3
Part I.................................................................................................................................................3
Identifying the economic factors in the determination of the price of lead using supply and
demand analysis...............................................................................................................................3
Part II...............................................................................................................................................5
Identifying of the negative externalities that may arise from excessive consumption of saturated
food fat.............................................................................................................................................5
Conclusion.......................................................................................................................................8
References........................................................................................................................................9
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Introduction
The business environments and the different parameters of the business environment drive the
way for the different companies or the organisations to manifest their strategies and programs. It
has been seen that the competitive environment is dependent directly on the two most promising
factors in the realms of a business environment. These two parameters include the supply and
demand and therefore these factors have been discussed broadly and it has been related to the
differences in the determination of the price of lead in the modern markets. This essay further
determines the different economic factors that have led to the demarcation and the fluctuations in
the prices of lead, in the modern markets. The second half of the assignment particularly deals
with the different programs and the measures that have been undertaken by the government in
order to reduce the overall consumption of fat among the people in the recent times.
Part I
Identifying the economic factors in the determination of the price of lead using supply and
demand analysis
Economics is a branch of science which is related to our daily life, like the production,
consumption or distribution. There are two areas of economics in our world. One is the
Macroeconomics and another one is microeconomics. Macroeconomics is a field which deals
with national production, national distribution, national earnings, whereas microeconomics is the
branch which deals with the individual production of any firm, company etc (www.aeaweb.org,
2017).
Scarcity is an economic problem which is developed due to the inadequate supply of resources
and excess needs of people. The resource is the collection or supply of materials, goods, workers,
money or another necessary thing to make a person's work or organisations' work effective.
Three types of resources mainly satisfy the daily needs of human. These are human resources,
natural resources and capital resources. Human resources are the people who mainly select the
workers; like- labours, staffs, employees for an organisation. Capital resources are the
equipment, tools, machinery used to make the useful product. Natural resources are substances or
materials collected from nature for economic requirements (www.colorado.edu, 2011). There are
three ways of the resource limitation. One is physical quantity limitation related to the land
which has a limited quantity, another one is used limitation such as labour or machine which is
used one time or natural resource limitation due to the high demand of a product.
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Supply is the amount of a service or goods that producers are able to provide in a marketplace.
The price and the quantity of a product are directly related to supply. If the price of a product is
high, then the supply of this product in the market is high. Demand is the amount of product
which a buyer is willing to buy. It shows the behaviour of a buyer towards a product in a
marketplace (westernreservepublicmedia.org, 2007). There is a negative relation between the
demand and the price of a product. If the price of a product is increased, the demand for this
product is automatically decreased. So, the price is a strong factor in the supply and demand
relationship. The orientations have been noted, especially in terms of the supply and demand of a
particular product in the modern markets. It has been seen that the demands and the supply of the
products establish the overall pricing that is laid forward towards the customers for their
purchase. Scarcity has a great impact on supply and demand analysis. Scarcity is a problem due
to inadequate supply and limitless demand of a product in a market. Due to scarcity people have
to make difficult choices (agmetalminer.com, 2017). They can buy this product with high prices
or they make another choice instead of the desired one. It has been seen that the scarcity in the
supply or the production of a particular product allows the particular product to attain a range of
different prices in the modern markets.
Lead is a soft chemical substance used in various ways; like batteries, plumbing, bullets and shot,
fusible alloy, radiation shielding, gasoline production, the glass of television and computer
production, ammunitions etc. But in the 19th century, it was identified as the poisonous element.
It usually enters the human body through water (21%), air (18%) and food (61%). There are
various foods that we eat daily contain lead, like meats, vegetables, seafood, wine etc. A small
quantity of lead also contains in the cigarette. When water is slightly acidic, the water pipe
corrosion occurs through which lead can enter within our body system. Air is polluted with lead
through the smoke comes out from the vehicles, industry. It is one kind of neurotoxin causes
nervous system failure by damaging the brain and soft nerve tissues, kidney damage, a rise of
blood pressure, failure of children learning ability, the behavioural disorder such as
hyperactivity, aggression, impulsive behaviour etc., decrease the sperm count. Various kind of
human activity like combustion of fuel and waste products, various industrial activities increase
the level of lead in our environment. Not only human, lead also affects the terrestrial and aquatic
ecology system of our environment. So in a modern perspective lead is not used as daily
products ingredients or used in very small amounts. That's why the demand of lead is very much
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decreased in modern time (Razmi et al. 2015, p.251). In the year of 2016, the International Lead
and Zinc study group reviewed that the global supply of refined lead metal overreached for the
first seven months of the year 2015. At that time, the total stock level is enhanced as well. The
ILZSG also reported that in the first seven months of the last year, the worldwide lead mine
production dropped by 5.6%.
According to the International Lead and Zinc study group, in the month of January of the year
2017, the demand for the lead was increased for eleven months of the last year as well as the
stock levels or supply we can say also exceeded at the same time. Another intergovernmental
organisation ILZSG also reported that the global lead mine production is also reduced 7.5% in
comparison with the framework of the year 2015, including the country India, China, Australia
and United States of America (Gutschner and Chin, 2016, p.1395). ILZSG has also reviewed that
the world refined lead metal production is decreased due to the production fall of the Chinese
production and level of decrease is 1.2%. They import 697,000 metric tonne lead, but now this
level is reduced by 24.6%. Not only that the price of metal is varied for several months of 2016
(Palacios-Agundez et al. 2015, p.148).
Part II
Identifying of the negative externalities that may arise from excessive consumption of
saturated food fat
Saturated fat is a type of simple fatty acids that enriched with hydrogen and contain no double
bonds between the carbon molecules. Some saturated fatty acids are healthy, but it is also
injurious to health. Saturated fat consumption increases the level of stroke, heart diseases,
cholesterol level, inflammation, obesity as well as cancer. The food of our daily routine
containing saturated fats is- pork, fatty beef, lamb, lard and cream, palm oil, coconut oil, cheese,
butter, poultry with skin etc (www.nhs.uk, 2017).
The government of UK, advises people to always consume low fat. They set a limitation that
every man should take 30 g of saturated fat daily, not more than that and the woman should
intake 20 g of fat daily. These demarcations in the levels of fat uptake provide a number of
health benefits for the individuals or the customers. It has been seen that the desired levels of fats
in the body allow the metabolism to proceed normally and as a result of which the various
activities are easily performed by the individual without a massive negative effect on their health
( Scott et al. 2014, p.4382).
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There are some tips for eating less fat; now here some tips to eat less saturated fat food which
can help to reduce the fat uptake, as follows;
Do not eat the roadside food, instead of that make your food at your home sweet home. Prepare
your food by boiling, baking or grilling, steaming, ignore roasted or deep fried food. Eat green
vegetables, fruits, salads instead of meat, fish. Always check the nutrition level of food product
you buy. Choose the low-fat content food. Nutrition level helps to reduce the fat level of your
body. If the product contains 5g fat per 100 g of fat, then it is red colour coded, thus contain the
high amount of saturated fat. If the amount of fat is 1.5 g out of 100 g, then it is green colour
coded, thus it is low fat contained product. The saturated fat level of the medium product should
fall between the higher level and lower level and the colour code is amber coloured (Ogden et al.
2014, p.811).
Use grill instead of deep fry in a case of ant meat or fish preparation. High-fat dairy products
also increase the fat level of your body. So choose the low-fat dairy products with 1% fat,
reduced fat cheese, yoghurt etc. Spray oil on your food instead of making it deep fried.
Sunflower oil, rice bran oil, olive oil contains low fat. Keep this oil in your menu. Always take
the skin off of the meat before making any kind of delicious preparation. Use less sugar in your
food preparation and avoid soft drinks or high sugar drinks or eat fruits or vegetables in snacks
time instead of deep fried foods. If reduced fat spread is used instead of butter and oil or 1% milk
instead of whole skimmed milk can help to maintain lower fat level.
Market failure is an economic term which is grown due to the failure in the allotment of
resources or less demand of any product or if there is any risk arose due to the excessive use of
any product. There are two types of market failure. One is the partial market failure and another
is the complete market failure. If the market is completely unable to supply goods or products, it
will cause the complete market failure. Partial market failure occurs due to the supply of the
inadequate quantity of any products or due to excessive price of any product (Nabavi et al. 2015,
p.308). Market failure can occur for various reasons. The reason behind the market failure is as
follows;
Sometimes certain useful things are incomplete or absent in market. The absence of some
important raw ingredients or some public goods decreases the demand for a product in a market.
The high price of some products can decrease the demand for a product in the marketplace. This
is an effective reason of market failure. If the transfer or trade coast of a product is very
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expensive then the market of a product is failed. In some cases, an organisation has information
about a material whereas other organisation does not know about it or sometimes they both do
not know about this material. It will cause market failure.
In modern perspective, obesity, strokes, nervous system failure, cancer are the common human
disease. The chance of this major diseases increases due to the massive intake of high saturated
fat food. To keep this thought in mind, the Food Standards Agency in the UK announces to use
low fat contained material in every processed and packaged food. That's why the food taste
becomes very poor and it is the main reason behind the market failure of much food material
(Hasnain et al. 2014, p.44).
The social cost of an economy defines as the private as well as the external cost of a society. e.g.
if a person rides a bike, an expensive vehicle; not only the bike causes air pollution which can
affect the person’s health as well as the health of other people living in this society. Social
benefit is the sum of private benefits and external benefits. E.g. if a person uses cycle instead of
bike it will be very healthy for people. It is an inexpensive process as well as it will help the
person to avoid congestion. In a case of social benefits, cycling can reduce the congestion for
other road users. The cycle is pollution free, environment-friendly vehicle minimises the health
risk of other people. There is a strong correlation between the social costs and social benefits. If
social cost is greater than social benefit then it will encourage more production, distribution and
consumption. Thus, helping to improve the economic health, if a social benefit is greater than
social cost than economic health is enhanced by the reduction of production, distribution and
consumption (Chang et al. 2015, p.1081).
Saturated fatty acid content of a food harm the social costs and the social benefits are huge. One
person buys a packaged food from a shop. He/she eats it; it tastes good that's why he/she loves it.
Then he/she tells his/her neighbour to buy it. In this way the people of a sociality buy and
consume this packaged food, it will increase the risk of these diseases like stroke, nervous
breakdown cancer; make a drastic effect on social costs and benefits (Chang et al. 2015, p.1082).
To maintain the threshold level of the use of saturated fat contained foods, The Food Standards
Agency of UK reduce the level of saturated fat of a food product from 13.3% to 11% of the
energy of food from the year 2010 for everyone above 5 years of age. Not only that, it orders the
departments to reduce their fat to help the consumers and maintain a balance between food
calorie consumption and expenditure of energy (Scott et al. 2014, p.4379). As a result of this, the
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changes in the dietary structure have been noted, with the differences in the average annual
uptake of the fats. The companies have rapidly responded to this act of the government and as a
result, have received the gradual aid of the government in their advertisements and health
campaigns.
The policies are- increasing consumer awareness, reducing the fat quantity of packaged and
processed foods, making the food product healthier, reducing the use of meats, fishes, eggs and
increasing the vegetable content that will make the food products healthier and tastier, increasing
smaller portion sizes of a food product. This immediate action of the UK Government helps to
maintain the health standards of UK community.
Conclusion
From the above studies and number of conclusions may be drawn in the context of the different
business environments. However, it has been seen that the overall prices of the lead in a
particular time depends on the overall status of the market scenario. It has been seen that the
price of the lead has been hiked, as soon as the demands have been variable in the context of the
modern environment. On the other hand, it has been seen that whenever the supply of the product
is higher, it has been seen that the patterns have been noticed in the change in the prices. In the
second part, it has been that the modern scenario focuses a lot on the general health status of the
people. It has been seen that the normal fat uptake ratio has been very high and therefore, the
government initiative has significantly lowered the levels of average consumption daily.
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References
agmetalminer.com (2017) Lead Price Forecast, January 2017: Supply Exceeds Demand for
Most of 2016 Available at: https://agmetalminer.com/2017/01/19/lead-price-forecast-january-
2017/ [Accessed on 15 Apr 2017]
Chang, B., Xu, M.J., Zhou, Z., Cai, Y., Li, M., Wang, W., Feng, D., Bertola, A., Wang, H.,
Kunos, G. and Gao, B., (2015). Short‐or long‐term high‐fat diet feeding plus acute ethanol binge
synergistically induce acute liver injury in mice: An important role for CXCL1. Hepatology,
62(4), pp.1070-1085.
Fathi, M., Claeys, D. and Bruneel, H., (2015). An integrated inventory-location model for a
supply chain under stochastic demand and lead time. In 29th Belgian Conference on Operations
Research (ORBEL 29-2015) (pp. 98-98).
Gutschner, T. and Chin, L., (2016). Genome engineering-Matching supply with demand. Cell
Cycle, 15(11), p.1395.
Hasnain, S.R., Singer, M.R., Bradlee, M.L. and Moore, L.L., (2014). Beverage intake in early
childhood and change in body fat from preschool to adolescence. Childhood Obesity, 10(1),
pp.42-49.
Nabavi, S.F., Russo, G.L., Daglia, M. and Nabavi, S.M., (2015). Role of quercetin as an
alternative for obesity treatment: you are what you eat!. Food chemistry, 179, pp.305-310.
Ogden, C.L., Carroll, M.D., Kit, B.K. and Flegal, K.M., (2014). Prevalence of childhood and
adult obesity in the United States, 2011-2012. Jama, 311(8), pp.806-814.
Palacios-Agundez, I., Onaindia, M., Barraqueta, P. and Madariaga, I., (2015). Provisioning
ecosystem services supply and demand: The role of landscape management to reinforce supply
and promote synergies with other ecosystem services. Land Use Policy, 47, pp.145-155.
Razmi, J., Moghadam, A.T. and Jolai, F., (2015). An Evaluative Continuous Time Markov Chain
Model for a Three Echelon Supply Chain with Stochastic Demand and Lead Time. IFAC-
PapersOnLine, 48(3), pp.248-253.
Scott, R.A., Fall, T., Pasko, D., Barker, A., Sharp, S.J., Arriola, L., Balkau, B., Barricarte, A.,
Barroso, I., Boeing, H. and Clavel-Chapelon, F., (2014). Common genetic variants highlight the
role of insulin resistance and body fat distribution in type 2 diabetes, independent of obesity.
Diabetes, 63(12), pp.4378-4387.
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westernreservepublicmedia.org (2007) Scarcity — Supply and Demand Available at:
http://westernreservepublicmedia.org/economics/scarcity.htm [Accessed on 15 Apr 2017]
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www.nhs.uk (2017) Eat less saturated fat Available at:
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