Introduction relationship between the price

IntroductionUbuntu is a complex word from the Nguni language which can be translated as, “I am because you are” or as, “A person is a person because of other persons”. What these statements mean is that a person conveys correct behaviour in the sense that correct being defined as a person’s relations with other people. The whole concept of ubuntu refers to behaving in a well manner towards others or acting in a manner that benefits the community as whole, so it brings about the sense of wholeness within our community.Is there a relationship between the price paid for labour, relative deprivation and poverty?Relative deprivation refers to the lack of resources needed to sustain the diet, lifestyle, activities and amenities than an individual or group are accustomed to.

Measuring relative deprivation entails limiting feelings of deprivation for each individual on a continuous scale, whereas joblessness or unemployment statuses are binary variables that cannot serve this purpose. It is also problematic to have a measure of relative deprivation that confines inter-personal comparisons to the reference group.These two issues can be overcome following a two-step procedure. Expected joblessness or unemployment is first estimated econometrically based on a number of personal characteristics, such as age or gender, believed to be used by people for inter-personal comparisons. The labour outcome predicted in this way (a continuous probability value included between 0 and 1) is then considered a measure of the labour outcome that individuals would expect to have if all people with the same characteristics were treated equally. Subsequently, by taking the difference between actual labour outcome and the expected labour outcome (the residual) and normalizing it between 0 and 1, a simple measure of deprivation is achieved, which varies between 0 and 1. To obtain the RLD individual measure, it is further assumed that individuals compare their own deprivation with the deprivation of those who are better off (those who have less deprivation, or a smaller residual). This is done by taking the sum of all the differences between an individual’s normalized residual and the normalized residuals of all other better-ranked individuals (those with smaller deprivation scores).

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

Finally, and for comparability across population groups, the resulting score is divided by the mean of the normalized residuals and by the population. The interpretation of RLD is that individuals take into account their own subjective deprivation in addition to the subjective deprivation of others who are better off, which generates more deprivation.Do you agree that the law of supply and demand should apply to wages? Specifically, can one say that a lecturer is deserving of more wages than a garbage collector even though both work in their own capacities to earn a human living?Demand is the rate at which consumers want to buy a product.

Economic theory holds that demand consists of two factors: taste and ability to buy. Taste, which is the desire for a good, determines the willingness to buy the good at a specific price. Ability to buy means that to buy a good at specific price, an individual must possess sufficient wealth or income. Both factors of demand depend on the market price. When the market price for a product is high, the demand will be low. When price is low, demand is high. At very low prices, many consumers will be able to purchase a product.

However, people usually want only so much of a good. Acquiring additional increments of a good or service in some time period will yield less and less satisfaction.3 As a result, the demand for a product at low prices is limited by taste and is not infinite even when the price equals zero.

As the price increases, the same amount of money will purchase fewer products. When the price for a product is very high, the demand will decrease because, while consumers may wish to purchase a product very much, they are limited by their ability to buy.Willingness and ability to supply goods determine the seller’s actions. At higher prices, more of the commodity will be available to the buyers. This is because the suppliers will be able to maintain a profit despite the higher costs of production that may result from short-term expansion of their capacity5. In a real market, when the inventory is less than the desired inventory, manufacturers will raise both the supply of their product and its price. The short-term increase in supply causes manufacturing costs to rise, leading to a further increase in price.

The price change in turn increases the desired rate of production. A similar effect occurs if inventory is too high. Classical economic theory has approximated this complicated process through the supply curve. The supply curve shown in Figure 2 slopes upward because each additional unit is assumed to be more difficult or expensive to make than the previous one, and therefore requires a higher price to justify its production.

Demand is defined as the quantity (or amount) of a good or service people are willing and able to buy at different prices, while supply is defined as how much of a good or service is offered at each price. How do they interact to control the market? Buyers and sellers react in opposite ways to a change in price. When price increases, the willingness and ability of sellers to offer goods will increase, while the willingness and ability of buyers to purchase goods will decrease.

Yes, I do agree because even though both the lecturer and the garbage collector are providing a service, the lecturer is most likely to be paid more based on the fact that he/she is providing a service which is more beneficial. By this I mean, a garbage collector simply picks up the trash and takes it to the dump, and even though this service is of import, it is still regarded as insignificant in the sense that anybody will be able to do this work. But a lecturer comes in, prepares a lesson and then teaches, providing those who are in the class with a means of bettering themselves as well as a means of having a better future once they graduate.

ConclusionWith regards to ubuntu, no matter what we believe, and whether we think that it is possible for us as a community to use the concept of ubuntu within economics, it will not be achieved purely based on the fact in our society, there will be a working-class group which we see as better than the other. For instance, the lecturer will always be seen as better than the garbage collector based on the fact that we believe that he/she is offering a better service.