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Module: Foundation of Economics

Tittle: Beshik market in Uzbekistan

Students ID: 00005774, 00005458, 00005486, 00005970, 00005149.


Literature review
Demand for beshik
Supply for beshik
Elasticity
Recommendation
Reference
There are approximately 530 beshik producers in Uzbekistan.
The main producers:
Bolajon
Alisher Kobilov
Xamrondil
Aka-Uka
Literature review
Novotours gives information that Cradle can be
the home of the child where children spend their
much time of the day till they can walk (no date).

Aquib Nawaz (2015) stated that the baby cradle


might be useful and helpful thing for parents if it will
include innovative functions such as PIR sensors.

According to Jackie Lohrey (2015), one of the


biggest disadvantages of baby cradles is safety.

Based on the research of Save the children


organization rocking infants in the cradle can result
in physical problems, especially brain damage.
Demand
Demand is an economic principle that describes a
consumer's desire and willingness to pay a price for a
specific good or service.
Demand schedule
Yearly demand for beshik

Year Price for one cradle Total demand (per year)


(UZS)
2012 60 000 990

2013 65 000 940

2014 70 000 880

2015 75 000 860

2016 80 000 800


Demand curve for beshik
Year Price Total
for one deman
cradle d (per
Price of one beshik (UZS)

(UZS) year)
2012 60 000 990

80 000 . . 2013 65 000 940

. 2014 70 000 880

70 000
. 2015 75 000 860

60 000 . 2016 80 000 800

50 000

800 900 1000 1100


Quantity
Non-price determinants of
demand for beshik:
Substitute goods
New competitors
Increase in birth rate
Taste
Health
The positive effect of possible non-price
determinants on demand curve
Price of one beshik (UZS)

P . .

Q0 Q1

Quantity
The negative effect of possible non-price
determinants on demand curve
Price of one beshik (UZS)

P . .

Q0 Q1

Quantity
Supply

Supply is a fundamental economic concept that describes the


total amount of a specific good or service that is available to
consumers.
Supply schedule
Yearly supply of beshik

Year Price for one cradle Total supply (per


(UZS) year)
2012 60 000 850

2013 65 000 890

2014 70 000 935

2015 75 000 960

2016 80 000 1005


Supply curve for beshik
Year Price Total
for one supply
cradle (per
Price of one beshik (UZS)

(UZS) year)

2012 60 000 850


. 2013 65 000 890
80 000

. . 2014 70 000 935

70 000
. 2015 75 000 960

60 000 . 2016 80 000 1005

50 000

800 900 1000 1100


Quantity
Non-price determinants of
supply for beshik

Technological progress
Weather conditions
Price of raw materials
Innovation
The positive effect of possible non-price determinants on

supply curve
Price of one Cradle (UZS)

P . .

Q0 Q1
Quantity
The negative effect of possible non-price determinants

on supply curve
Price of one Cradle (UZS)

P . .

Q1 Q0
Quantity
Equilibrium

Equilibrium is the point where conflicting interests are balanced.


Price of one Cradle (UZS)
Equilibrium

. .
.. . .
80 000

70 000
67 000 .
. .
60 000 . .
D
50 000

910 1100
800 900 1000

Quantity
Price elasticity of demand
Price elasticity of demand is a measure of the relationship
between a change in the quantity demanded of a particular good
and a change in its price.
Demand curve for beshik
Year Price Total
for one deman
cradle d (per
Price of one Cradle (UZS)

(UZS) year)
2012 60 000 990

80 000 . 2013 65 000 940


P1

75 000
. 2014

2015
70 000

75 000
880

860
P0
2016 80 000 800

800 860
Q1 Q0
Quantity demanded
Price Elasticity of demand
(Q1 - Q0 ) / average of Q0 and Q1
P D =
(P1 - P0 ) / average of P0 and P1

Q0 = 860, P0 = 75 000 UZS, Q1 = 800,P1 = 80 000 UZS

( 800 - 860 ) / 830


P D = = 1,17
( 80000 - 75000 ) / 77500

1,17>1, thus, demand is elastic.


Income elasticity of
demand
The responsiveness of one variable (e.g. demand) to a change in
another (e.g. price). This concept is fundamental to understanding
how markets work.
Income elasticity of demand
%DQD
Y D =
%DY
D QD=7%
D YD=15%
7%
Y D = = 0, 47
15%
What determines demand
elasticity?
Nature of the good
Normal (as income elasticity is positive)
Availability of close substitutes
Bed, baby swing, other furniture
Share of consumers budget
Small amount
Cross-price elasticity of
demand
The responsiveness of demand for one good to a change in the
price of another.
Cross-price elasticity of
demand
%DQ
C D = Da

%DPb
D QDa=7%
D Pb=11%
7%
C D = = 0, 64
11%
Recommendation
To reduce price
To bring new technology
To learn about competitors
Branding
Reference list
IndexMundi (no date). Uzbekistan - birth rate - historical data graphs per year.
Available from http://www.indexmundi.com/g/g.aspx?v=25&c=uz&l=en
[Accessed 4 March 2017].

Lohrey, J. (2015). Are there disadvantages of using baby swings. LIVESTRONG.COM.


Available from http://www.livestrong.com/article/240998-the-disadvantages-of-
baby-swings/ [Accessed 4 March 2017].

Nawaz, A. (2015). Development of an intelligent baby cradle for home and


hospital use. Available from
http://ethesis.nitrkl.ac.in/7666/1/2015_BT_Development_Aquib_nayaz.pdf
[Accessed 4 March 2017].

Novotours (no date). Novotours silk road. Travel agency in Uzbekistan. Available
from http://novotours.uz/fra/cradle_beshik.html [Accessed 4 March 2017].

ohchr.org. (2011). HARMFUL TRADITIONAL PRACTICES IN TAJIKISTAN. [online]


Available from
http://www.ohchr.org/Documents/HRBodies/CEDAW/HarmfulPractices/SavetheChi
ldren.pdf [Accessed 9 Mar. 2017].

Sloman, J. (2006). Economics. 6th ed. Edinburgh, England: Pearson Education,


pp.57-69.
Thank you for your
attention!!!
Q&A session

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