Question

Critique and Analysis of Supply and Demand Article Find a current event article about supply and demand (less than one year old). Preferably the article will be from the UCW database of newspapers and magazines or other reliable source. It need not be a complicated article nor does it necessarily have to mention the words supply and demand. However, it should be interesting to you. The purpose of this exercise is for you to demonstrate that you understand the law of supply and demand. The other purpose of this paper is to demonstrate your critical thinking skills by critiqueing and analyzing the article. The paper should contain the following sections: Introduction or Executive Summary Economic analysis - use your economic terminology to explain what is going on in the article. Supply and Demand graphs to illustrate the article. Critique the article. For example, do you agree or disagree with it? Explain why or why not. Has something been omitted in the writing of the article? What would make this a better or more complete article? Use your own words here to give an opinion about the article. Conclusion References with a clear link to your article or the article itself within the text. Your paper will be graded on writing clarity and quality. Grammar is important! Be sure to demonstrate critical thinking skills, use economic concepts and terms correctly, and anticipate any objections that can be raised. Papers should be a minimum of two pages, spaced 1.5 and a minimum of around 1000 words, using standard APA style. (See the link for an APA template on the library link). Please keep in mind that it is more import to get to the point of the article rather than to add "fluff" to your writing.

Answer 1

Introduction

This article talks about the government of India taking monopoly of the taxi fares and fixing them at a price they seem appropriate. Siddhartha Pahwa an enterpreuner and ex CEO of Meru Cabs stands in strong opposition with the government decision. He talked about this policy in a summit held at Mumbai. He holds the idea that the taxi drivers of India should stop the lobbying of government to fix fare prices for them. Since, this is a colossal industry it should be given the freedom of deciding the price on the basis of supply and demand. He thinks the people in this sector should embrace the new technology and move forward with the changing times. A good economy is that where there is a complete balance between the supply and demand. The fare should be high if the demand is high. Fixing it to a price is only going to make matter worse for both the people who are using service and the people who are providing it. Since the prices are fixed they lead to a greater number of supply and less demand creating an imbalance in the equilibrium . The supply curve moves toward right thus increasing and the demand curve also moves towards right decreasing the demand this ultimately results in reduced prices of the service.

Graph for the supply demand curve

The supply will remain constant but the demand will decrease due to the fixed fare prices ultimately decreasing the income of the taxi drivers.

Critical Analysis

I do not completely agree with the views put forward by Mr. Siddhartha Pahwa. Although it is true that the prices should be set according to the supply demand law, but every law is not suitable for every situation. India is a country that has a huge population that is involved in the sector of transportation as taxi drivers. If we follow what Mr. Pahwa suggest the situation will turn out to be a disaster. A huge population means a huge competition. If all the fare is not fixed then all the drivers will decide the fare according to themselves the customers will want to do the same. The consumer and the service provider will be like two opponents in a ring, never agreeing with each other. This will cause a huge economic loss. Also the article does not state anything about how the fare prices according to the demand and supply curve should be implemented. At, one point Mr. Pahwa says that government should fix minimum and maximum price rates. If the government has to fix a range of prices hen why not fix the exact price to remove any kind of confusion.

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Article link :https://www.entrepreneur.com/article/288801