Rasmussen College Fiscal Policy Effects on Consumers PP Presentations

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timer Asked: May 5th, 2018
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Question Description

For your final course project assignment, you will compile each of the module course project submission into a PowerPoint Presentation to demonstrate your ability to provide a comprehensive presentation on the chosen course project product.

Topics that will be incorporated into your final course project assignment include:

  • How does an increase in fiscal policy affect consumers' ability to purchase the iPhone 6 plus?
  • How does a decrease in fiscal policy affect consumers' ability to purchase the iPhone 6 plus?
  • Does monetary policy affect the sale and purchase of the iPhone 6 plus in a negative manner?
  • Does monetary policy affect the sale and purchase of the iPhone 6 plus in a positive manner?

Your PowerPoint Presentation should include the following:

  • Title slide
  • Introduction slide
  • Two or more slides per assignment
  • Summary slide
  • Reference slide

Unformatted Attachment Preview

Running Head: CONSUMER DEMAND ANALYSIS Consumer Demand Analysis James E Riley Jr. 1 CONSUMER DEMAND ANALYSIS 2 Consumer Demand Analysis Introduction Apple is among the leading companies in the industry of technology and therefore, consumer spending on the purchase of its products and economic fluctuations have broader implications to its sales. After the launch of iPhone 6 Plus and iPhone 6, the Apple achieved a sales of more than 10 million phones within the first three days (Worstall, 2018). The huge sale was significant to the revenues of the company, although it may be a demonstration of great challenges in the future. The following paper discusses the consumer demand analysis of iPhone 6 Plus. Some of the main issues that will be discussed are impacts of economic fluctuations to the sale of iPhone 6 Plus and the different causes of unemployment. Economic Fluctuations and the Sale of iPhone 6 Plus The revenue for large multinational companies tends to be cyclical, where there are higher earnings alternating with lower earnings. Since iPhone 6 Plus was very successful in the market, the company experienced an extremely high sale, which evidently would be followed by a period of extremely low sales (Worstall, 2018). Initially, the sales of the phone were not impacted upon by economic fluctuations, since people were waiting and were prepared to make their purchases. The demand for the iPhone 6 Plus was high and customers had no need for replacing their phones after a few months of purchase. This supercyclic has impacts on the sales of iPhone 6 plus because of the natural product cycle. The sale of the product is not affected by economic fluctuations since the phone is costly compared to the others in the market but consumers are still making their orders for the product (Worstall, 2018). However, the increased sale of the product being experienced in the economy is expected to have economic impacts on the future sales because of the law of demand and supply. CONSUMER DEMAND ANALYSIS 3 Type of Unemployment in Contraction of Economies The type of unemployment that will be experienced after the contraction of Chinese and American economies will be cyclical unemployment. This form of unemployment will be caused by the cyclical business cycle of the two economies due to the fall in the demand for goods and services (Mirzayev, 2018). The reduction in the demand will force the businesses in the two economies to lay off many employees with an aim of reducing their costs of operations. More unemployment will be created because the laid-off employees will have little or no money to make their purchases of commodities leading to even lower demands. Four Causes of Unemployment and iPhone 6 Plus Structural factors cause unemployment when the demand for labor is lower than its supply in an individual market. It is contributed by a long-term decline in the demand for goods and services in an industry leading to fewer work positions and therefore a lower demand for labor (McBride, 2018). This cause has not affected the production of iPhone 6 Plus so far because its demand is still high in the market. The voluntary cause of unemployment is experienced when people chose to remain unemployed rather than take the available job opportunities. For example, people may choose to remain unemployed because they consider the wages as below their standards. This cause of unemployment does not affect the market for iPhone 6 Plus because Apple is a large multinational company with attractive benefit packages that are aligned to the minimum wage policy. The cyclical cause of unemployment is experienced when the production is below the full capacity, which leads to a fall in demand. This form of unemployment can affect the production of iPhone 6 Plus due to the natural product cycle. CONSUMER DEMAND ANALYSIS 4 The frictional cause of unemployment is experienced when people take time before securing employment (McBride, 2018). An example is a period that can be experienced by graduates after colleges before they secure their first employment. This cause of unemployment does not affect the production of iPhone 6 Plus. Unexpected Inflation and the Sales of iPhone 6 Plus Unexpected inflation will decrease the purchasing power of the consumers in the American market (McBride, 2018). The inflation will stagnate wages and income while increasing the cost of iPhone 6 Plus. The consumers will strain in purchasing the product, and some will not afford to purchase it. The overall result will be a reduction in the demand and the sale of iPhone 6 Plus. Conclusion The above discussion addresses the consumer demand analysis of iPhone 6 Plus. Some of the main issues that have been discussed include the impacts of economic fluctuations to the sale of iPhone 6 Plus, the type of unemployment that can be experienced in the reduction of Chinese and American economies, causes of unemployment and the impacts of unexpected inflation to the sale of iPhone 6 Plus. CONSUMER DEMAND ANALYSIS 5 References McBride. C (2018) How Does Inflation Effect The Purchasing Power of Money? Accessed on 03/05/18 from http://smallbusiness.chron.com/inflation-effect-purchasing-power-money696.html Mirzayev. E (2018) Impact of the Chinese Economy on the U.S. Economy. Accessed on 03/05/18 from https://www.investopedia.com/articles/investing/072915/impact-chinese-economyus-economy.asp Worstall. T (2018) Fun Number: Apple's iPhone 6 Is, Alone, Producing 10% Of All US Economic Growth Apparently Running head: MARKET STRUCTURE 1 Market Structure Classification James E Riley Jr. April 2018 MARKET STRUCTURE 2 Market Structure Classification The iPhone 6 plus is a premier device, being one of the most sold devices by Apple Inc. the phone brings to play features and functionalities that are still unrivaled in the market. The following discussion endears the device to the audience the market structure that best suits the device, with the market characteristics that align with the same. It then discusses how the price and quantity is determined for the iPhone 6 Plus, before identifying the market competition it faces. The influence of the competition in the market is analyzed then with an evaluation on whether the said competition compromises the market by engaging in price discrimination and culminates in an analysis of cellular phone alignment with the game theory. Market structure The market structure that best befits the product is the monopolistic market, with the players in the market producing almost similar products that are differentiated by branding or packaging (Auer & Schoenle, 2016). The mobile phone industry is comprised of many players who sell the same products which are separated by branding. Players such as Samsung have products that match the functional prowess of the iPhone 6 plus with the only difference being the brand. These market characteristics are therefore in tandem with the features and circumstances of the device. Price and quantity The players in the market produce almost similar products that are differentiated by branding or packaging. Therefore, the product company has no means of dictating the price on its own and therefore relies on the prevailing market rates to determine the same. As to quantity, MARKET STRUCTURE the company cannot afford to produce the device in mass, and introduces a few units to test market reaction before embarking on mass production. Competition The mobile phone industry is comprised of many players who sell the same products which are separated by branding. Players such as Samsung have products that match the functional prowess of the iPhone 6 plus with the only difference being the brand. Apart from Samsung, which is the company’s greatest competition, other players have introduced devices that have more superior qualities albeit at a lesser cost (Hong & Li, 2017). The competition definitely has an influence on the market as they dictate the trends as well as the pricing range, considering the fact that the market structure is monopolistic. Price discrimination Considering the nature of the market and the market structure, the players have an influence on the market as they dictate the trends as well as the pricing range, considering the fact that the market structure is monopolistic. In a bid to control the market forces, the competition may decide to reduce their prices so low so as to alienate the iPhone 6 plus. Therefore, the competition applies price discrimination in dealing with the device. Prisoner’s Dilemma This is a concept that forms part of the game theory that proposes that there are some forces or players in the game who would not work together, even if in doing so, they would be mutually benefitting each other. In the cellular market, the players are so competitive to the 3 MARKET STRUCTURE extent that they would not consider pooling their resources to work together even if the said collaboration would be beneficial to both of them. 4 MARKET STRUCTURE 5 References Auer, R. A., & Schoenle, R. S. (2016). Market structure and exchange rate pass-through. Journal of International Economics, 98, 60-77. Hong, G. H., & Li, N. (2017). Market structure and cost pass-through in retail. Review of Economics and Statistics, 99(1), 151-166. ...
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Tutor Answer

Dr_Jay
School: UIUC

Hello. I am through with the paper, I passed it thr...

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Review

Anonymous
Good stuff. Would use again.

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