History of the Fornication Pants Essay

Jeans today are much more than a simple item of clothing; they are a staple, a comfort and an identity. They are not a piece of clothing that is unique to one culture or society; jeans are jeans no matter where you are. Jeans have transcended nationality, race and even war, and yet they are still one of the most ordinary parts of our lives. What many people take for granted is that Jeans have become such a part of their everyday lives that they never stop to think about where they come from, and what they have done for people. Jeans had a humble beginning, a colourful and influential life and have a bright future. They are a part of North American history and culture and have defined many people’s lives. Cotton denim started being produced in North America in the eighteenth century and with the American cotton industry came slave labour. Plantation owners relied on slaves to keep prices down, and in 1860 there were almost four million slaves in the southern United States. (Kyi p.10) Denim got its name from a French fabric woven of silk and wool. The fabric was made in Nimes, France, and as a result it was dubbed â€Å"serge de Nimes†, but when the fabric began being stocked in English stores, it was shortened to â€Å"deNimes† or â€Å"denim†. (Sullivan p.12) At the time, denim was the strongest fabric and was even thought to have been the fabric of choice for the sails of the ships that Christopher Columbus sailed to the New World. (Sullivan p.14) Jean manufacturers buying denim from mills requested dark blue cloth rather than the pale beige offered as it was a colour that would show less dirt and wear. So denim cloth began to be dyed using indigo, but because of the time needed to make the dye it was one of the most expensive dyes in the world. That changed in the 1880’s, when a German scientist by the name of Johann von Baeyer discovered a way to create the same colour in a lab. The colour blue was now much more accessible and cheaper to achieve using the new synthetic indigo dye. (Kyi p.10) There are two Jean companies that played a major part in the production and distribution of the pants at the end of the 19th century and the beginning of the 20th century, Levi Strauss & Co. and Lee Company. Levi Strauss was born Loeb Strauss in 1829 in Bavaria. After immigrating to the San Francisco, he opened up a whole sale business selling high quality fabrics. He struck it rich during the California gold rush in the 1860’s, but not by finding gold, but by selling his heavy duty work pants. (Kyi p.15) Around the same time in Nevada, a tailor named Jacob Davis, an immigrant from Latvia, was trying to figure out how to make his work pants stronger. Miners were constantly ripping the seams of their denim work pants. Finally while in his barn Davis realised that the copper rivets that were used to reinforce the seams of horse blankets could be used to reinforce pants as well. (Kyi p.18) His pants were a hit, so he contacted his denim supplier, Levi Strauss, to see if he would consider going into business with him and help him purchase a patent. Strauss was convinced and the two applied for a patent in 1873. This was the birth of blue jeans, although they were not called jeans yet. They were still being called high waist overalls or waist overalls. (Kyi p.21) The first cloth called â€Å"jean† was made in Genoa, Italy, and was worn by sailors. In Italian, Genoa is pronounced â€Å"Genes†, but Strauss did not use the Italian fabric and his pants were not worn by sailors so he never used the term â€Å"jeans†. It was not until years after his death that Levi Strauss & Co. Began using the word. (Contini p.158) It did not take long for the riveted jeans to catch on, and production began to soar and Strauss invited Davis to move to San Francisco, where the two hired dozens of seamstresses to work in their new factories. To distinguish which pants were his and to demonstrate how strong they were, Strauss had a leather label designed for the back waistband, that showed a pair of jeans tied between two draft horses going in opposite directions. The horses were trying to rip the jeans apart, but the fabric was too strong. The label worked so well that for decades the jeans were known as the Two-Horse brand. (Kyi p.23) In the 1890’s a pair of Levi Strauss’ jeans cost about one dollar US, about the equivalent of twenty dollars US today, which was enough to make Strauss rich. (Sullivan p.18) When he died in 1902, his company was left in the care of his three nephews, who were eager continue the company’s success, but they were facing competition. The patent on riveted pants expired in 1891, and in the early 20th century, a new clothing manufacturer appeared, Henry David Lee. Lee opened H.D. Lee Mercantile Company in Kansas City in 1899, selling fabric and furniture. Soon he opened up his own factory and began producing what would today be recognized as overalls. (Kyi p.25) He then came up with the idea to sew a denim shirt onto a pair of jeans to form a denim coverall. The Lee Union-All was first marketed to men who loved cars as it could be worn over other clothes to keep them clean. In 1913 it was popular with farmers, engineers, and factory workers, and soon became available for women and children. When the American Army was preparing to join WWI, thousands of Lee Union-Alls were ordered for the soldiers as they were found to be more durable than any other clothing. (Kyi p.26) In 1926, the Lee Company revolutionized jeans, by putting a zipper in place of the buttons in the fly to â€Å"ease access†. During the depression Lee Company managed to convince people that Lee jeans would last twice as long as other pants, making them a good investment. The Company even opened up a new factory in 1936. (Kyi p.31) During WWII, wartime rationing led to shortages of blue jeans, and owning them became a status symbol. At that time jeans were only available in North America, but when soldiers set sail for Europe and Asia, jeans were introduced to the rest of the world. (Kyi p.35) For women working in factories during the war, jeans or coveralls with a bandanna became their dress code, partly because of the famous portrait of Rosie the Riveter proclaiming â€Å"We Can Do It† while wearing a denim shirt. (Sullivan p.70) After the war, the young soldiers who came home became the first teen rebels. They no longer wanted coveralls but pants that fitted snugly around the waist more suited to motorcycle riding than farming. (Kyi p.39) This developed a style that was popularized by Hollywood and stars such as James Dean in Rebel without a Cause. (Sullivan p.92) Marilyn Monroe began wearing hip-hugging jeans that became popular for women in the 1950’s, making jeans sexy for women as well as men. (Sullivan p.96) Jeans were now something that you could wear while hanging out with your friends; they were no longer just for working on the farm or in a factory. Parents began to worry that their children were running wild, and jeans were banned in US schools and in churches in England. (Kyi p.41) It seemed as though Brigham Young could see into the future when in the 1830’s he called jeans the â€Å"fornication pant†, appalled at the button fly. (Sullivan p.9) Denim had left behind its army reputation and had become the newest style trend. Hollywood stars such as Marilyn Monroe and Bridget Bardot began wearing them for press appearances and parties, and that’s when the worldwide love affair with denim began. (Sullivan p. 98) Jeans are now a staple of pretty much everyone’s wardrobe in the 21st century. No matter what ethnicity or social class, everyone wears jeans. You see them on movie stars, your teachers, Presidents and Princes, and when you see news footage of a peace rally in Israel; the protestors are wearing jeans. They now come in over 200 sizes and countless styles and washes, with some made for wear on the farm and others perfect for a date on a Friday night. In the 19th century a pair of Levi’s would set a buyer back about $1.50 US, but today the sky is the limit. Jeans vary in price (for adults) from around $20 US at Wal-Mart to a pair of diamond and gold studded jeans that were sold in 2001 in Italy for $500,000 US. (Kyi p.13) Light wash or dark wash, boot cut or flare, diamond studded or embroidered, jeans are jeans, and are a North American icon. Jeans are one of the only pieces of clothing that have survived over ten decade’s worth of styles, and have always looked pretty much the same, and will be around for many more years to come. Works Cited 1.Kyi, Tanya Lloyd. The Blue Jean Book: The Story behind the Seams. New York, New York: Annick Press, 2007. 2.Sullivan, James. Jeans: A Cultural History of an American Icon. New York, New York: Gotham Books, 2006. 3.Contini, Mila. 5000 Years of Fashion. Secaucus, New Jersey: Chartwell Books, Inc., 1977.

Dress Code essays

Dress Code essays Constitutional violations occur far too common at Highland Park High School. Articles about controversial subjects written for student newspapers are censored. Lockers and backpacks are searched without reasonable suspicion. Minority students get excessively thrust in lower level programs. Teachers and school administrators officially sanction majoritarian religious practices. Female students are excluded from certain extracurricular activities, and gay students become intimidated into silence and exclusion. In response to these allegations, school administrators will rebuttal that guidelines must be present to ensure order. Teachers and administrators have a responsibility to provide a healthy and orderly environment for the students that is beneficial to learning and development. The faculty also has a responsibility to respect each students individual rights. These two missions are not incompatible. Simply put, students have rights too. Due to a cosmic amount of limitations and guidelines placed on students at Highland Park High School, they are unable to fully mature into individuals. High school is a critical time in the development of each student into a fully functioning and unique members of society. Placing limitations on a students clothing can be associated to placing restrictions as too what colors an artist can use to paint a picture. The current dress code hinders a students ability of self-expression and growth by oppressing their creativity, individuality, and freedom of expression. The current dress code at Highland Park prohibits students from wearing various articles of clothing and outfits because the district and school officials feel they have the uncanny ability to impose a negative learning environment and community. Quite to the contrary, however, the overwhelming majority of students feel that clothing can not infringe on their ability to concentrate or learn to their fullest. At the sam...

How To Use Spanish Verbs With Locations

How To Use Spanish Verbs With Locations To say something or someone is somewhere in Spanish, it is most common to use the verb estar. For example, to say that Roberta is at home, you can say simply: Roberta est en casa. However, in some situations it is also possible to use ser, the main other verb for to be, as well as verbs used primarily for location. Estar vs. Ser When Referring to Location Although both are verbs for to be, estar and ser are seldom interchangeable, and that is true especially when they are used for location. Although estar typically is used to describe where a person or thing is located, when speaking of events ser must be used. One key to remember which verb to use is to note that if the verb can be translated as to take place or to be held, ser must be used. Some examples of estar used in reference to persons or things: Tim y Catalina nunca estaban en casa. (Tim and Catalina were never at home.)El restaurante est en Espaà ±a. (The restaurant is in Spain.)Yo salgo a la 1 de clase, para la 1:20 estarà © en la playa. (I am leaving class at 1 so I will be on the beach at 1:20.)Amri y su compaà ±era ya estn en Parà ­s. (Amri and her companion are already in Paris.)El coche est en el taller por una averà ­a. (The car is in the shop to get fixed.)Seattle est en el centro econà ³mico de la regià ³n conocida como Greater Puget Sound. (Seattle is in the regional economic center known as Greater Puget Sound.) Here are some examples of events that require the use of ser: La reunià ³n es en Valencia, Espaà ±a. (The meeting is in Valencia, Spain.)El partido La reunià ³n era en un retaurante selecto de Cartagena. (The meeting was in an exclusive restaurant in Cartagena.) en la capital estadounidense. (The game will be in the American capital.)La recepcià ³n de la boda fue en el restaurante Jjome Terrace. (The wedding reception was in the Jjome Terrace restaurant.) ¿Dà ³nde es el concierto que vemos? (Where is the concert were seeing?)Es posible que el debate fuera en un restaurante selecto de Cartagena. (Its possible the discussion was in an exclusive Cartagena restaurant.) Note how each of the sample sentences could also be translated by the appropriate tense of to occur or a phrase with a similar meaning. Sometimes, the meaning or even translation of the verbs subject can change depending on the whether ser or estar is used: El examen ser en la sala de conferencia. (The test will be in the conference hall. The test here refers to an event.)El examen estar en la mesa. (The test will be on the table. The test here refers to a document.)La obra ser en el teatro. (The play will be in the theater. A play is an event.)La obra estar en el museo. (The work of art will be in the museum. A work of art is something that can be touched.) Other Verbs of Location The two other verbs most often used to specify a location or ubicar and situar, which for this purpose are typically used in the form of estar past participle. In the present tense, translation of is, is located, and is situated are all possible. Nuestro hotel est ubicado en el corazà ³n de Buenos Aires. (Our hotel is in the heart of Buenos Aires.)La morada elegante est situada en la zona cosmopolita de Ciudad Quesada. (The elegant dwelling is in the cosmopolitan zone of Ciudad Quesada.)El pueblo de Maxtunil estaba ubicado cinco leguas al norte de Mà ©rida. (The pueblo of Maxtunil was five leagues north of Mà ©rida.)Nuestro segundo local va a estar situado en la calle Fernndez. (Our second shop is going to be on Fernndez Street.) Key Takeaways The verb estar, usually translated as to be, can be used to state where people and objects are.The verb ser, also typically meaning to be, is used to indicate where events take place.The verbs ubicar and situar can also be used to specify locations.

Saudi and US cultures Essay Example | Topics and Well Written Essays - 250 words

Saudi and US cultures - Essay Example We don’t know each other personally, but at least the Sheik who connects us. If someone from the tribe has a problem, he will collect money from people who want to contribute. The role of everyone in the tribe is to support his\her relatives because the more together we are, the stronger we become. In America, however, people’s family usually just refers to their immediate, â€Å"nuclear† family – or maybe to grandparents. Many people with the same name do not consider themselves related. So Saudis have a broader conception of family than Americans do. Another different thing is a wedding. Saudi Arabia’s weddings cost men an arm and a leg because they have many obligations before and after the marriage. For example, men must pay a dowry for women, who they want to marry, which costs them at least seventy thousand riyal (more than seventeen thousand dollars). Also, the expense of the honeymoon is all on men which is going to cost around twenty thousand Rails (six thousand dollars). In America, however, weddings can be whatever the couple wants and can afford, and often costs are split amongst the people getting married. It is less formal (sometimes) and also subject to a lot of different cultural or religious values, whereas in Saudi Arabia things tend to operate in a similar way every time. People there get married at earlier ages. The average age of marriage is between 23 and 25 years old, so this amount of money is not easy to get. In other words, when a starting salary is your primary income, this dowry is difficult to make. In this situation, you need support from your relative, and they always do help. For instance, when my brother got married three years ago, he received a total of sixty thousand Rails (sixteen thousand dollars) from our relatives. We call that a marriage support. Without needing this money, American people can get married whenever they can

Managing Patient safety Essay Example | Topics and Well Written Essays - 2750 words

Managing Patient safety - Essay Example (I.O.M, 1999). Harm occurs if a patient’s quality of life or health is negatively affected by any element of their interaction with health care. This would be as a result of patient safety incident, which is any healthcare related event that is unexpected, unintended, and undesired and which could have or did harm the patients. It is, therefore, upon the NHS to ensure high standard, as well as safe clinical care is maintained and make sure they are in line with the current technology. According to the department of health, patient safety needs to be prioritized, as far as health care system is concern. The resulting patient safety management knowledge continually heighten improvement efforts to better patients’ welfare such as applying lessons learned from industry and business, educating consumers and providers, adopting innovative technologies, enhancing the error and the reporting systems, and finally developing new economic incentives (Fleming, M, 2000). Arguably, r esearchers ought to investigate and find out the effectiveness of patient safety in the health care system. This, in essence, can help ascertain the measures that can improve the conditions if need be. In this paper, my major concern entails patient care as practiced in any health care services with major focus on medication safety based on analyzing the current issues of patient safety management and understanding of systems and human factors in maintaining patient safety. It is evident from research that as far as patient safety is concerned, medication safety is one of the major issues that is quite disturbing. In this regard, human factors, which correlate with medication safety, play a major role, in so far as patient safety is concerned and cannot be overlooked when dealing with such sensitive issue as patient safety. Negligence, as a human factor, has increasingly become one major factor that affects medication safety basically because of lack of concern among the health care practitioners. For instance, I remember one critical instant when a health care practitioner, acting out of negligence, failed to rescue the life of Elain Bremonung, a young woman who was admitted in the hospital for routine sinus surgery. During the anaesthetic, she had breathing problems and the attending anaesthetist was slow at responding to the situation, thus became unable to insert a device to open her airway. The most distressing thing about it is that the affected patient was in a critical state. If not for the alarm sounded by one of the friends of the affected patient, the patient would have passed on. Arguably, there were no grave consequences reaped on this incident, however, one thing that is clear is that medication safety is up stake in many of the health care systems. This incident clearly shows that human factors, as well as organization factors play a role in medical safety. This, therefore, calls for need to investigate the link between organizational and human factors in relation to patient safety. I have considered such issues in my presentation. Hence in doing so, I would come up with an incident that reflects the role of organization and human factors in patient safety and finally outline recommendations to the situation. Patient safety. Patient safety is the prevention, avoidance and amelioration of adverse injuries or outcomes stemming from the processes of medical care. It is also freedom from healthcare associated, preventable harm. A

Comparative investigation of seismic hazards and approaches to Essay

Comparative investigation of seismic hazards and approaches to mitigation - Essay Example Comparative investigation of seismic hazards and approaches to mitigation The occurrence of earthquake in future is expected. The Asian countries are one of the most earthquake-prone nations in the world. To make sure that the infrastructure of the country and other losses caused by the natural catastrophe is minimized certain mitigation approaches are taken up by the countries. The devastating nature of the earthquake has made many countries carry on extensive research and development programs like hazard assessment and disaster response program. Japan- the seismic hazards and its mitigation approach The Seismologists in Japan are of the opinion that Japan is yet to face a large-scale devastating earthquake, which might strike the region of Kanto, Tokai and Nankai. Intensive efforts are being taken by the country to mitigate the disasters and minimize the economic impact of the earthquakes (Office of technology Assessment Washington Dc, 149). This has resulted into extensive research and development of disaster related programs to combat the earthquake. J apan is an â€Å"archipelago† in the Pacific, which is separated by the Sea of Japan from the east coast of Asia. The four main island of the nation are Honshu, Hokkaido, Kyushu and Shikoku. The nation is one of the most crowded and densely populated regions in the world. About 125 million people live in the cities along the coast. The closest neighbors of the nation are Korea, Russia and China. Japan is situated at a region where several continental plates like the Eurasian, the Philippine Sea, the Pacific Ocean and the North American plates converge- an important reason that the country faces frequent earthquakes and volcanoes. The largest earthquakes have occurred in the Philippine Sea and Pacific plates. Japan experienced the most devastating earthquake in the year 1923 on September 1st – the Great Kanto Earthquake. In the span of a minute 1 lakh people were dead and over 3 lakhs buildings were destroyed. The forces were so great that it lifted the southern bay as high as upto 2 m (6.6 ft) and also raised the distant land of Tokyo to 10 cm (4 in) and experienced a horizontal movement of 20cm (8in). The giant waves- tsunami that was generated by the tremor of the earthquake washed away ships inland and it swept people and houses out of the sea. The geographical situation of the country makes it earthquake prone- in one year it witnessed as many as 5000 earthquakes. After the devastating earthquake of 1923, the Japanese government imposed seismic codes based on the performance of certain buildings in Tokyo during that time. And it was after that there came in many advances in the earthquake engineering research, seismic codes and the construction practices of the city. The Japanese designing codes were a two-stage design process that was taken up. The first phase includes an analysis approach and the second phase involved an explicit assessment of the buildings, whether they will be able to withstand the severe ground motions. The construction companies in Japan spend a considerable amount on the research and development work annually including â€Å"testing of scaled building models in large in- house laboratories and research into passive and active control technologies† (Office of Technology Assessment Washington Dc, 149). The countermeasures taken up by the country included three important aspects- the making of the city more disaster resistant, strengthening the disaster prevention system of the city like tsunami warning system and raising awareness and

The Welfare Effects Of A Government Policy Economics Essay

The Welfare Effects Of A Government Policy Economics Essay For the purpose of this paper demand and supply analysis is used to show how it can be applied to a wide variety of economic problems. In the first section consumer and producer surplus is better defined and explained to understand the welfare effects of a government policy. In other words, consumer and producer surplus can evaluate who gains and who loses from a given policy, and also by how much. Also note that these two concepts of surplus can also be used to demonstrate the efficiency of a competitive market. In the sections to follow minimum prices, price supports, and related policies will be discussed in more detail. To assist the theory, demand-supply analysis will be used to understand and assess these policies. Consumer and Producer Surplus To understand consumer and producer surplus better the principles of price ceilings and floors will be discussed. As opposed to price floors, a government-imposed price ceiling means that the price is set at a lower level than the price in the prevailing market. Likewise, price ceilings will cause the quantity of a good demanded to rise. This happens because at lower prices consumers want to buy more. On the other hand, the quantity supplied will fall because producers are not willing to supply as much at lower prices. As a result of this a shortage will occur, which also indicates excess demand. Note that those consumers who can still buy the good will be better off because they now pay less. However, supply will fall, forcing producers to provide less of their goods. The following section provides a more detailed explanation of the welfare gained or lost by both consumers and producers, should certain prices be imposed. For the purpose of this section the assumption follows that consumers and producers buy and sell at the prevailing market price in an unregulated, competitive market. However, for some consumers the value of the good in question exceeds the prevailing market price. This also means that the consumer would be willing to pay more for the good if it was expected. Therefore, consumer surplus is the total benefit that consumers receive beyond what they pay for the good (Pindyck and Rubinfeld, 2005:300). For example if the market price of a product is R7, but the consumer is willing to pay R10 for it, then his net benefit will be R3. Consumer surplus can also be explained with the assistance of demand and supply curves. In this respect consumer surplus can be interpreted as the area between the demand curve and the market price. Pindyck and Rubinfeld (2005:300) also states that consumer surplus measures the net benefit to consumers in the aggregate, therefore, this analysis can be used to better understand the gains or losses induced from government interventions. On the other hand, producer surplus is the equivalent measure for producers (Pindyck and Rubinfeld, 2005:301). If goods were to be produced at a price lower than the market price, then more could be produced. Therefore, producers will enjoy a benefit, or rather a surplus, from selling those units. This surplus is the difference between the market price the producer receives and the marginal cost of producing the units. It can also be better explained as the area above the supply curve up to the market price. Essentially consumer and producer surplus is used for economic analysis to evaluate the welfare effects of a government intervention in the market. It assists with anticipating who will gain or lose from the intervention, and also by how much. To do so the concepts of price ceilings and price floors will be explained in more detail. Price Ceilings Price ceilings occur when production (supply) is decreased and the quantity demanded is increased (Pindyck and Rubinfeld, 2005:301). Price ceilings tend to cause excess demand, or rather shortages, to occur. Figure 1: Graphical Presentation of a Price Ceiling The following section provides a theoretical explanation of Figure 1 and the effects of price ceilings on consumers and producers respectively: Consumer Surplus (Pindyck and Rubinfeld, 2005:302; and Perloff, 2005:274, 296, 297): Consumers are better off as they can buy the good at a lower price. Thus, the consumers that still buy the good enjoy an increase in consumer surplus, which is resembled by rectangle A. On the other, those consumers who can no longer buy the good lose surplus. Their loss is represented by triangle B. Therefore, the net change in consumer surplus which is a positive result is: à ¢Ã‹â€ Ã¢â‚¬  CS = A B Producer Surplus (Pindyck and Rubinfeld, 2005:303; and Perloff, 2005:278, 280, 297): With price controls, some producers will stay in the market but will receive a lower price for their output. Thus, they have lost the producer surplus represented by rectangle A. Other producers may however leave the market. This means that total production will also drop, which is represented by triangle C. Therefore, the change in producer surplus, which is a negative result, is: à ¢Ã‹â€ Ã¢â‚¬  PS = (-A) C Deadweight Loss (Pindyck and Rubinfeld, 2005:304; and Perloff, 2005:280, 281): Price controls will result in a net loss, which is also referred to as deadweight loss. Therefore, combining the change in both consumer and producer surplus will bring along a total change in surplus as follows: Deadweight Loss = (A B) + [(-A) -C] = (-B) C In essence, deadweight loss results in an inefficiency caused by price controls. In summation, a price ceiling is that price held below the prevailing market price. It merely means that too little is produced and, at the same time, that consumers and producers in the aggregate are worse off (Pindyck and Rubinfeld, 2005:306; and Mohr, 2004:162, 163). Price Floors In contrast to price ceilings, price floors indicate what happens when government requires for the price to be above the market price. Although producers would like to produce more at this higher price (indicated on the supply curve at P2) consumers will now buy less. If we assume that producers only produce what can be sold, then the market output level will be at Q1. Once again there is a noted net loss of total surplus (Pindyck and Rubinfeld, 2005:306, and Perloff, 2005:293): Triangles B (a loss of consumer surplus) and C (a loss of producer surplus) represents the deadweight loss. Rectangle D represents the transfer from consumers to producers, who now receive a higher price. Figure 2: Graphical Presentation of a Price Floor In fact, the deadweight loss gives an optimistic assessment of the efficiency cost of policies. The reason for this assumption is that some producers may still however increase prices after the price floor have been incorporated. This would, in turn, result in unsold output. However, should the producer receive more importance with regard to applicable policies, then government might buy up the unsold output to maintain production at Q0. In both cases, the total welfare loss will exceed the areas of triangles B and C (Pindyck and Rubinfeld, 2005:307). The Efficiency of a Competitive Market As discussed already, consumer and producer surplus can be used to evaluate economic efficiency in the aggregate. In the previous section it was shown how price controls create a deadweight loss. Thus, the policy imposes an efficiency cost on the economy (Pindyck and Rubinfeld, 2005:306). Both consumer and producer surplus are reduced by the amount of the deadweight loss. This does not mean that such a policy is bad. It may however achieve other objectives that policymakers and the public consider important. Many researchers argue that if the only objective is to achieve economic efficiency, then a competitive market would be better left alone. This means that no interventions should occur. However, in some cases market failure will occur because prices fail to provide the proper signals to consumers and producers. Also, the unregulated, competitive market could be inefficient. These indications of market failure may occur because of two instances (Pindyck and Rubinfeld, 2005:306): Externalities: Sometimes the actions of either consumers or producers will result in a cost/benefit that does not show up as part of the market price. Such a cost/benefit can also be referred to as externalities because they are external to the market. An example of this is the cost to society of environmental pollution by a producer of industrial chemicals. Lack of Information: When consumers lack information about the quality or nature of a product and can therefore not make a utility-maximising purchasing decision. If these two instances (externalities and/or the lack of information) are absent in a market then that unregulated, competitive market will essentially have no obstacles, and an economically efficient output level can be reached. Minimum Prices For the purpose of this section we will refer back to Figure 2. From the graph we can see that if producers can correctly anticipate that they can sell only the lower quantity Q1, then the net welfare will be given by triangles B and C. However, as mentioned before, producers may not limit their output to Q1. Incorporating Figure 2 to illustrate minimum prices, the following notations has to be made (Pindyck and Rubinfeld, 2005:310): P2 denotes a minimum price set by the government. Q2 denotes the quantity supplied, and Q1 denotes the quantity demanded. The difference between Q1 and Q2 represents excess supply, or rather, unsold supply. Therefore, Consumer Surplus (Pindyck and Rubinfeld, 2005:310): Those consumers who still purchase the good must now pay a higher price (Rectangle D). Some consumers will also drop out of the market (Triangle B). Therefore, consumer surplus remains the same as before and indicates that consumers are actually worse off as a result of this policy: à ¢Ã‹â€ Ã¢â‚¬  CS = (-D) B Producer Surplus (Pindyck and Rubinfeld, 2005:311): Producers, on the other hand, receive a higher price for the units they sell, which results in an increase of surplus (Rectangle D). Rectangle D can also be better described as the transfer of funds between consumers and producers. But, the drop in sales from Q0 to Q1 actually results in a loss of surplus which is represented by triangle C. Also remember that the supply curve is a representation of the additional cost of producing each incremental unit. Thus, the area under the supply curve from Q1 to Q2 is the cost of producing quantity Q2 less Q1. This area is represented by trapezoid E. Unless producers respond to unsold output by cutting production, the total change in producer surplus will be: à ¢Ã‹â€ Ã¢â‚¬  PS = D C E Minimum prices is merely one of the ways to raise prices above the prevailing market level through the direct intervention and regulation of the government simply make it illegal to charge a price lower than a specific minimum level. As a result, this form of government intervention can reduce producers profits because of the cost of excess production. Another example of this is a minimum wage law. In other words, a wage rate at a level higher than the market price will result in those workers who can find jobs and earn a higher payoff. However, some people who want to work will be unable to, which will result in a policy that brings about unemployment (Pindyck and Rubinfeld, 2005:311). Price Supports and Production Quotas Besides imposing a minimum price, the government can also increase the price of a good in other ways. In agricultural policy the system is mostly based on price supports, but prices can also be increased by restricting production, either directly or through incentives to producers (Pindyck and Rubinfeld, 2005:314). In this section these policies will be examined in more detail as to show how consumers, producers and the government budget are affected. Price Supports: In general, price supports aim to increase the prices of dairy products, tobacco, peanuts, etc. This is done with the intention that the producers of these types of products earn higher incomes. This basically entails that the government sets the supporting price and then buys up whatever output is needed to keep the market price at this level. The resulting gains/losses will be as follows: Figure 3: Government Price Supports Consumers Surplus (Pindyck and Rubinfeld, 2005:315): At price P2, the quantity demanded falls to Q1, and the quantity supplied increases to Q2. To maintain this price and avoid inventories having to pile up, the government must buy the quantity Qg = Q2 Q1. Because the government adds its demand to the demand of the consumers, producers can sell all they want at price P2. Therefore, the consumer surplus will be calculated in the same way as with minimum prices: à ¢Ã‹â€ Ã¢â‚¬  CS = (-D) B Producers Surplus (Pindyck and Rubinfeld, 2005:315): Price support policies are implemented with the intention to increase the gains that producers receive because producers are now selling a higher quantity (Q2) at a higher price (P2). Therefore producer surplus will be as follows: à ¢Ã‹â€ Ã¢â‚¬  PS = D + B + F Government Welfare (Pindyck and Rubinfeld, 2005:315): However, there is also a cost to government, which in essence is paid for by taxes. Thus, ultimately this is actually a cost indirectly related to consumers. This amount is represented by the rectangle that makes up BCEFG. This cost may be reduced if the government can dump some of its purchases, for example, selling them abroad at a low price. However, doing so hurts the ability of the domestic market to sell in foreign markets. The total welfare cost of this policy could be defined as: à ¢Ã‹â€ Ã¢â‚¬  CS + à ¢Ã‹â€ Ã¢â‚¬  PS Cost to Gov = D (Q2 Q1)P2 If the objective is to give producers an additional income equal to D + B + F, it is far less costly to society if government were to give them this money directly rather than via price supports. This can be supported by the fact that price supports are costing consumers D + B anyway. If government pay producers directly, then society will save the large rectangular area BCEFG less triangle F (Pindyck and Rubinfeld, 2005:316). However, price supports are in use most likely because they are a less obvious giveaway and, therefore, politically more correct. Production Quotas: The government can also cause the price of a good to rise by reducing supply. Government can do this by setting quotas on how much each firm can produce. With appropriate quotas, the price can then be forced up to any arbitrary level. An example of this could be the control of liquor licenses by the government. By requiring any bar or restaurant to have a liquor license and, at the same time limiting the number of licenses, will result in limited entrants into that market. This also allows those with licenses to earn higher prices and profit margins. The welfare effects of production quotas will be explained in the following section (Pindyck and Rubinfeld, 2005:317): The government restricts the quantity supplied to Q1, rather than at the market level of Q0. Thus the supply curve becomes the vertical line S at Q1. As a result consumer surplus is reduced by rectangle D plus triangle B. On the other hand, producers gain rectangle D less triangle C. Thus, once again, there is a deadweight loss that occurs which is represented by B + C: à ¢Ã‹â€ Ã¢â‚¬  CS = (-D) B à ¢Ã‹â€ Ã¢â‚¬  PS = D C + (Payments for not producing) However, the cost to the government is a payment sufficient enough to give producers an incentive to reduce output to Q1. That incentive must be at least as large as (B + C + F), because that area represents the additional profit that could have been made if the quota was not applicable. Also remember that the higher price (P2) give producers incentive to produce more even though the government is trying to get them to produce less. Thus, the cost to government is at least B + C + F and the total change in producer surplus is: à ¢Ã‹â€ Ã¢â‚¬  PS = D C + B + C + F = D + B + F à ¢Ã‹â€ Ã¢â‚¬  Welfare = (-D) B + D + B + F B C F = (-B) C Figure 4: Supply Restrictions via Production Quotas This is the same change in producer surplus as with price supports therefore, producers should in essence be indifferent between the two policies because they end up gaining the same amount of money from each. Likewise, consumers end up losing the same amount of money (Pindyck and Rubinfeld, 2005:318). It can also be noted that, once again, the society will clearly be better off in efficiency terms if the government simply gave the producers (generally in the agricultural sector) D + B + C, leaving price and output alone. Producers would then gain D + B + C and the government would lose this profit for a total welfare change of zero, instead of a loss of B + C. However, economic efficiency is not always the objective of government policy. Import Quotas and Tariffs Many countries use import quotas and tariffs to keep the domestic price of a product above world levels and thereby enable the domestic industry to enjoy higher profits than it would under free trade. However, the cost to taxpayers from this protection can be relatively high. Without a quota or tariff, a country will import a good when its price is below the price that would prevail domestically, were there no imports (Pindyck and Rubinfeld, 2005:321, 322; and Perloff, 2005:298, 299). Figure 5: The Affect of an Import Tariff/Quota on Imports S and D represent the domestic supply and demand. Because the world price (P1) is below domestic demand and supply, it gives domestic consumers an incentive to purchase from abroad if imports are not restricted. If that is the case then domestic price will fall to the world price at P1. At a lower price, domestic production will fall to Q1 and consumption will rise to Q2. So imports will be the difference between domestic consumption and production (Q2 Q1). Now suppose the government, bowing to pressure from the domestic industry, eliminates imports by imposing a quota or a tariff at Q0. This will forbid any importation of the good in question. With no imports allowed the domestic price will rise to P0. Consumer Surplus: As a result, consumers who still purchase the good will now pay a higher price and will lose the surplus represented by trapezoid A and triangle B. In addition, some consumers will no longer buy the good which results in a further loss represented by triangle C. Therefore, the total change in consumer surplus will be: à ¢Ã‹â€ Ã¢â‚¬  CS = (-A) B C Producer Surplus: In concern with producers, output is now higher (Q0 instead of Q1). Output is also sold at a higher price (P0 instead of P1). Producer surplus therefore increases by the amount of trapezoid A: à ¢Ã‹â€ Ã¢â‚¬  PS = A à ¢Ã‹â€ Ã¢â‚¬  Welfare = (-B) C Combining both à ¢Ã‹â€ Ã¢â‚¬  CS and à ¢Ã‹â€ Ã¢â‚¬  PS to obtain the total welfare effect merely indicates once again that there is a deadweight loss. This loss indicates that consumers lose more than what producers gain. Imports could also be reduced to zero by imposing a sufficiently large tariff. The tariff would have to be equal to or greater than the difference between P0 and P1. With a tariff of this size there will be no imports and, therefore, no government revenue from tariff collections. Thus, the effect on consumers and producers would be the same as with a quota (Pindyck and Rubinfeld, 2005:323). However, government policy is more often designed to reduce, but not eliminate, imports (as shown in Figure 6. Again, this can be done with either a tariff or a quota (Pindyck and Rubinfeld, 2005:323; and Perloff, 2005:300, 301): When imports are reduced, the domestic price is increased from P1 to P0. Trapezoid A is again the gain to domestic producers. The loss to consumers is A + B + C + D. Thus, if a tariff is used, the government will gain rectangle D, the revenue from the tariff. Therefore, the net domestic loss will be B + C. If a quota is used instead, then rectangle D becomes part of the profits of foreign producers, and the net domestic loss will be B + C + D. Figure 6: The General Case with an Import Tariff or Quota The Impact of a Tax or Subsidy The burden of a tax (or the benefit of a subsidy) falls partly on the consumer and partly on the producer. In this section it will become clear that the share of a tax accepted by consumers depends on the shapes of the demand and supply curves and, in particular, on the relative elasticities of demand and supply (Pindyck and Rubinfeld, 2005:326). The Effects of a Specific Tax A specific tax can be better defined as a tax of a certain amount of money per unit sold. This is in contrast to an ad valorem tax which is a proportional tax. However, the analysis of an ad valorem tax is roughly the same and yields the same qualitative results (Pindyck and Rubinfeld, 2005:326). Examples of specific taxes are sin taxes on cigarettes and liquor. Suppose the government imposes a tax of t cents per unit. This means that the price the buyer pays must exceed the price the seller receives by t cents. Figure 7 illustrates this accounting relationship and its implications (Pindyck and Rubinfeld, 2005:326): Figure 7: The Effects of a Specific Tax Here, P0 and Q0 represent the price and quantity before the tax is imposed. Pd is the price that buyers pay and Ps is the price that sellers receive after the tax is imposed. Therefore, Pd Ps = t. Here the burden of a tax is split evenly between buyers and sellers. Buyers lose A + B, while sellers lose D + C. On the other hand, the government earns A + D in revenue. Thus, the deadweight loss is once again B + C. The solution is therefore to find the quantity that corresponds to a price of Pd and Ps so that t = Pd Ps. This quantity is shown as Q1. As seen from Figure 8, the burden of the tax is shared roughly evenly between buyers and sellers. It can also be stated that the price that buyers pay rises by half of the tax, and the price that sellers receive falls by roughly half of the tax. As Figure 7 and 8 shows, market clearing requires four conditions to be satisfied after the tax is in place (Pindyck and Rubinfeld, 2005:327, 328). These four conditions can also be written and distinguished as four different equations that must always be true: The quantity sold and the buyers price must lie on the demand curve, because buyers are interested only in the price that they must pay. Qd = Qd(Pd) The quantity sold and the sellers price must both lie on the supply curve, because sellers are only concerned with the price they are to receive. Qs = Qs(Ps) The quantity demanded must equal the quantity supplied (Q1). Qd = Qs The difference between the prices of buyers and sellers must equal t. Pd Ps = t There is a change in consumer and producer surplus, as well as in government revenue can be summarised as follows (Pindyck and Rubinfeld, 2005:328; and Perloff, 2005:289, 290): à ¢Ã‹â€ Ã¢â‚¬  CS = (-A) B à ¢Ã‹â€ Ã¢â‚¬  PS = (-C) D à ¢Ã‹â€ Ã¢â‚¬  Welfare = (-A) B C D + A + D = (-B) C From the above information we have seen that the burden of a tax is shared almost evenly between buyers and sellers, however, this is not always the case. If demand is inelastic and supply is relatively, then the burden of the tax will fall mostly on the buyer. Demand will work in the opposite way. It can also be determined if the burden of a tax falls more on the buyer or the seller (Pindyck and Rubinfeld, 2005:328): Pass-through fraction (Buyer) = Ed / (Es Ed) This equation thus stipulates what fraction of the tax is passed-through to consumers (buyers) and producers (sellers) in the form of higher prices. So, if the demand is totally inelastic (when Ed = 0) so that the pass-through fraction is 1, then all the tax is borne by the consumers (Pindyck and Rubinfeld, 2005:328). Similarly, when demand is totally elastic, the pass-through fraction is zero and producers bear all the tax. Therefore, the equation basically indicates that a tax falls on the buyer if Ed / Es is small, and on the seller if Ed / Es is large. The Effects of a Subsidy A subsidy can be analysed in much the same way as a tax. In fact, a subsidy can be better defined as a negative tax. With a subsidy, the sellers price exceeds the buyers price and the difference between the two is the amount of the subsidy. Thus, the effect of a subsidy on the quantity produced and consumed is the opposite of the effect of a tax, which also means that the quantity will increase (Pindyck and Rubinfeld, 2005:329). Figure 8: The Effects of a Subsidy In general, the benefit of a subsidy accrues mostlyto buyers if Ed / Es is small, and to sellers if Ed / Es is large. Also, the same four conditions needed for the market to clear, apply for a subsidy as it did for a tax. The only difference is that now the difference between the sellers price and the buyers price is equal to the subsidy (Pindyck and Rubinfeld, 2005:329): Qd = Qd(Pd) Qs = Qs(Ps) Qd = Qs Ps Pd = s Conclusion From this paper the evidence shows that simple models of demand and supply can be used to analyse a wide variety of government policies. These include price controls, minimum prices, price supports, production quotas, import tariffs and quotas, and taxes and subsidies. In each case, consumer and producer surplus are used to evaluate the gains and losses to consumers and producers. These gains and losses can be quite large. Evidence have also indicated that when the government imposes a tax or subsidy, price usually does not rise or fall by the full amount of the tax or subsidy. Also, the incidence of a tax or subsidy is usually split between consumers and producers. The fractions that each group ends up paying/receiving depend on the relative elasticities of demand and supply. It is important to remember that government intervention generally leads to a deadweight loss, even if consumer and producer surplus is weighted equally. In some cases this deadweight loss will be small, but in other cases (price supports and import quotas) it is large. This deadweight loss is a form of economic inefficiency that must be taken into account when policies are designed and implemented. In summation, government intervention in a competitive market is not always bad. Government, and the society it represents, might have objectives other than economic efficiency. There are also situations in which government intervention can improve economic efficiency. Examples are externalities and cases of market failure.