MICRO-ECONOMICS

Micro-Economics

Micro-Economics

Introduction:

The first thing the human beings needed after coming to this world was food. Foraging was suffiecent for only a limit. From the dawn of time, the food sources being used included plants and domestic animals. Beef is the useable end product obtained by harvesting cows, cattle, bulls, etc. It has become an integral part of all human being's diet due to the fact that it is a renewable source. Red Meat is a synonym for beef while white meat is synonym for chicken. Even with the advent of modern times, the importance of these sources has remained constant, although there happen to be periodic fluctuation and variances upon the demand and supply of individual products. Similarly aside from beef, other domestic animals are also used as dietary sources. Chicken, pork and beef are the chief products that are used in the meat category. There are other sources as well like camel meat or deer meat, etc. But these sources are too exotic and in some cases to expensive to be added into a regular meat product category. Since it is an integral part of the diet, there is an ever present demand of the product. As mentioned before there is only a difference in quantity demanded, it cannot be possible that beef be permanently eliminated from the market. U.S.A, U.K, Australia, Canada, and Pakistan there is an ever present demand of beef products. Even in India, where beef is considered taboo, it still has beef products available. The reason for that is, aside from producing the much needed meat for consumption, cows also produce milk when alive and manure which is used for fertilizers in the agriculture. The bones of the cows are use to create extracts. The skin is used for producing leather goods and even the horns are also used for ornamental and decoration purposes. So it shows that cattle and beef have large primary and secondary markets that shall be affected by change in the prices. In the meat consumption, there are home users, the direct consumers and restaurants, who use the meat in preparation of dishes and delicacies. Since it is such a vital commodity, many governments used this as an export product to gain revenues specially 3rd world countries like Pakistan, Bangladesh, etc. In spite of being a taboo in India, it is still used in the food industry and other industries; this shows how essential it is in the current modern industry.

Law of Supply and Demand

According to the Law of Supply and Demand, the ideal scenario in the relationship of the two variables would be to match each other perfectly and so the graph shows equal and opposite curves in optimal settings. The consumers should supply enough quantity of goods so as to satisfy the demand market. In this way they will have no loss on their part. The changes occur however, when there is a shift in either of the curves. If the demand increases then the supply also increases, however, if the ...