http://www.maniacsolutions.com/global-marketing-beer/
help with the economy, please?
help the economy grade 11 … Diamond sales at De Beers, worlsd major supplier of diamonds, quarterover have declined over the past six months as the global economic downturn hit consumer spending on luxury items. Sales rough gems in the five auctions held in the past six months fell 26% to $ 3.6 million. So why is the market in Japan and we be relevant for the sale of diamonds? What do you expect the price and income elasticities of demand for diamonds to be? what you do expect the price of the offer elastities the short term?
U.S. and Japan are important markets because they are two of the largest, most developed countries in the world. These are the people who can afford diamonds. They are luxury goods, people only buy them when they essentially have too much money. Poor or average income of people would never consider buying. As soon as the price elasticity, I would say that it is Veblen goods, its price elasticity is positive (while most products have a negative price elasticity). Meaning, people want to buy them because they are expensive, this implies rank, status, wealth. If diamonds were cheaper, people would be less inclined to buy. Take wedding rings for example – people want diamond rings because they are the sacrifice, the willingness to give up so much for your loved one how much the relationship means to you, etc. If diamonds were not the most expensive gem, that would not be so popular for this. As for the income elasticity are very elastic. If people can not afford diamond with ease, can hardly buy anything. They are not critical to the survival of anyone. There are lots of other nice things out there to buy if you can not reasonably afford diamonds. They are used to show status and wealth rather than because they are needed or run price elasticity. Short would probably be entertaining inelastic. You have mined diamonds that are already there and can not be used for another purpose. If you can not sell them, they are worthless. They have no intrinsic value than what others pay for them. If everyone suddenly decided that a gem sapphires are much better than diamonds, diamonds become diamond miners during night and void would have no option but to sell what they have at any price. In the long run, of course I could but mine, but the decision is short-term either to sell at market price or simply thrown away. As a result, short-run supply is highly inelastic.
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