Fair Trade Principles Essay Example | Topics and Well Written Essays - 2250 words

Fair Trade Principles - Essay ExampleScarce commodities are considered much more big than commodities available in abundance hence there is a significant difference between the termss of unusual commodities and the commodities which are available in abundance. Let us now consider the demand aspect of the price theory, the demand aspect of the price theory is driven by an authoritative factor which is how desperately a consumer is in need of that commodity or service. If a consumer is urgently in need of the service or commodity, he/she wouldnt mind spending even double the amount of m wizy which they would fork out spent in normal circumstances. So the demand aspect of the price theory is all about the desire of the consumer to have that particular commodity or service at his/her disposal.Another important aspect which is very important is the demand curve demand curve gives a right- pass by(a) enough indication of the will of consumers to obtain the commodity or the service at that particular price. Demand curve and supply curves are examine by an organization to arrive at an equilibrium price. Equilibrium cost is the fixed cost and this changes wholly when the demand and supply is changed and it does not change unless the demand and supply changes.Let us now fasten on into consideration the difference between high life goods and necessities, the ... he level of income of an individual goes on to decide what luxury is and what is necessity For instance a rich person can endure debauching bikes and as a replacement start collecting cars, this purely depends on the level of income of people. The word luxury has more meanings than single, one often mistakes luxury as a status symbol, for instance a person can buy a Nike shoe considering as a luxury knowing very little about how good the shoe is, so it depends on individuals on how they define luxury. Euro Star and its Price TheoryEuro star is a high speed direct which covers areas in London, Brussel s and capital of France. The price theory of the high speed train will be highlighted in the remaining of the paper. There are three different clubes namely, the standard class, the vacant select and the last one is Business Premier. The rates vary depending upon the class, for a journey from London to Paris it would roughly cost about 178 if one chooses to travel in Standard class, on the other hand the fare is higher if one chooses to travel by Leisure select, it would cost roughly about 325 if one chooses a two vogue journey from London to Paris and back. The third and the most expensive class is the Business Premier which would cost a person roughly about 328.50 for a one way journey from London to Paris. The demand factor of the price theory comes into effect here people take to travel by Euro star because they have the willingness to pay for the service offered by the train. This is a very inhering concept in price theory, if the people dont feel the willingness to travel by the train they will stop travelling by the train. This goes to show that the prices of the services offered by the train are quite reasonable and this is hardly why the people feel willing to travel