Week 1 Discussion 2
Resources are inputs utilized by organizations to create or produce or to offer services. These resources are human resources, financial resources, non-human resources among other things like technology. Even land is a resource, and at the same time, it can produce other resources such as raw materials that can be used to create things. However, despite resources being available, the world still suffers scarcity.
The scarcity of resources has resulted in sustainability. People are asked to utilize resources sustainably to cope with the scarcity. The current resource scarcity is problematic due to climate change. Today, there is an advocacy for sustainable use of resources, and at the same time, production in some areas is being affected due to climate change. With climate change, humans can utilize resources such as trees properly. The scarcity of resources is also problematic because it is limiting humans’ full exploitation of natural resources and other resources. Although there is a feeling that human civilization will help solve the problem of scarcity, challenges posed by climate change are likely to increase scarcity.
One of the likely problems that will result from scarce resources will be unmet human needs. The resources are supposed to meet human needs, but with scarcity, these needs are not likely to be met as expected. Also, scarce resources are likely to affect survival because people need adequate resources for survival. With limited resources like clean water and drugs, human survival will significantly be threatened.
In all honesty, I agree with Chelsea Follett that in future resource scarcity can be overcome (Follett, 2018). Every problem that presents itself has a solution. Hence, I am confident that addressing the cause of scarcity and making the right policies will help us overcome the problem. Overcoming resource scarcity requires human civilization, innovation, and effective resource management.
Week 1 Discussion 2
If Coke’s price increases, the demand for Pepsi is likely to increase. Pepsi is a substitute for Coke, and therefore, if the manufacturer or retailers decide to increase Coke’s price, its demand will possibly decrease. An apparent increase in a commodity’s price triggers a consumer behavior toward a substitute. Thus, rising Coke prices have a high potential of leading to high demand for immediate substitutes that are relatively cheaper. Consumers are also looking for ways to spend less to have disposable income to meet other needs.
The drop in demand for Coke for increased prices is a movement along the demand curve. In this case, there is a change in price that is triggering a demand for a substitute. When a price change is involved, the movement will be along the demand curve. Price plays a significant role in determining the quantity demanded. Hence, this makes the movement along the demand curve.
Nevertheless, if Coca-Cola develops a new technology to make its Coke tastier, both the supply curve and demand curve for the product will be affected. First, there shall be a shift in the demand curve. It is possible that the demand will increase, leading to a shift on the curve. This is a non-price factor, and therefore a shift on the demand curve will have to happen. Also, there shall be a shift on the supply curve, because here the factor triggering the change is non-price.
Besides, the demand curves or schedules for both Pepsi and Coke are not seasonally different. These are commodities that people consume daily globally and are close substitutes. This makes their demand curves similar. Also, the relationship between Coke and Pepsi arises from the fact that they are close substitutes. Their demand curves are the same because they are substitutes. Products that similar or substitutes have a similar demand curve.