Question

You have learned that supply and demand are global factors at this point in the class. in chapter 9, comparative advantage is explored, showing that some countries should trade products to their advantage. while in chapter 10, customer demand and utility demonstrate that consumers want to be happy with the products no matter what, and if they are not satisfied, they will seek alternative options.

Explore the following concepts to expand your answers: type one paragraph discussing your utility for a product and how it would change if the price increased significantly or if you could only purchase a limited quantity. provide a real example in your life in which your satisfaction with the product is more important than the price you pay for it (hint: make sure you pick a product that you favor, as your decision will be different than for those products that you dislike). type one paragraph examining various business advantages and provide an example of one business that does it better than another. (hint: this is not a personal opinion, use real statistics to demonstrate your selection) (make sure you support your opinion with academic resources such as journal articles found on the hccc library website databases under research.) type one paragraph that demonstrates an example of a time when the product was made better or the experience of using the product was better with the help of customer service or employee assistance. use this real-life example to demonstrate how consumers' satisfaction is more than just using the product or quality.

Answer 1

Comparative advantage explains international trading patterns, such as why certain regions import fresh fruit from countries with favorable growing conditions. Personal utility for a product affects consumer behavior even in the face of price hikes or scarcity, with satisfaction sometimes outweighing cost. An example is the high value placed on a personal laptop, where utility justifies a higher price or effort to obtain.

Step-by-step explanation:

The concept of comparative advantage is a fundamental element in international trade, where countries like the United States might focus on exporting products it can produce more efficiently, such as refrigerators, and import goods like shoes where other countries have an advantage. This trading principle demonstrates how global trading patterns are influenced by the efficiency in the production of goods, which is determined by the opportunity cost of producing one good over another. It points out that gains from trade can still occur even if one country is less efficient in producing all goods compared to its trade partner, thereby improving global economic welfare.

A real-life example of this concept is evident in the fresh fruit that consumers in North America and the European Union might enjoy from countries like Chile and Mexico. These countries have a comparative advantage in producing such fruits due to favorable climate conditions and lower labor costs, resulting in the specialization and export of these products to regions with higher productivity. This specialization allows countries to trade effectively, each benefiting from the other's strengths while consumers enjoy a diverse range of products.

In the context of personal utility for a product, as a consumer, if the price of a product I highly favor increases significantly or if I'm faced with a limited quantity, my satisfaction with the product may dictate my willingness to pay the higher price or seek it out despite scarcity. For instance, I value my laptop highly for both personal and professional use. If the price were to spike, or if it became difficult to purchase, I would still be inclined to invest in it because of its utility to me. The product's value to me outweighs the cost. Utility in such scenarios is tied to how much happiness or satisfaction I derive from the product despite external market changes.