China's middle class Assignment Example | Topics and Well Written Essays - 4750 words

China's middle class - Assignment Example Within the discourse of this study, the role of the middle class in the political affairs and other national revolutions have been highlighted like the most recent protest of 2012 against the expansion of a petrochemical plant in Ningbo city. Furthermore, the study also puts forward reflections on a comparison between the middle class of China and other capitalist countries as well as an evaluation of Chinese middle class and Asian countries. China’s Middle Class Resistance against the Expansion of a Chemical Plant On October 28, 2012 thousands of Chinese people clashed with the police in an anti- government demonstration against the expansion of a chemical plant- a petrochemical factory in Ningbo city. According to the protestors, the chemical plant would risk the lives of common people while damaging the health of the public because of the increased chances of pollution. As a result of this protest, the government indulgence and concession in the matter indicate its motivati on to meet the demands of the rising protestors (Wong, 2012). This scenario also indicates a leadership transition which may prove to introduce a new rule in the Communist China. Since 1990s, various other similar events of resistance have been occurred in urban areas like Guangzhou, Beijing and Shanghai. Sometimes, homeowners’ resisted for their interests or emerging middle class stood against authoritarian regimes. Whatever, the reasons were, the ultimate goal was to bring change within existing political framework. In this regard, the role of the middle class cannot be denied at any level. Their role is most often regarded as a significant driving force towards democratization especially in a non- democratic- authoritarian regime (Dolven 2003, pp. 35- 37). So, here the matter of concern is that who is considered the middle class of China and how they are rising to bring forward a change? Who is the Part of Middle Class in China? Basically, middle class of china involves a section of households who have annual income between $10,000- $60,000. While cost of living in this region of the world greatly varies, however, by a rule of thumb a person is supposed to be a part of middle class if he/ she is able to spend one third of his income at his own discretion. The middle class of China is concentrated, mostly, in big cities where educated people can find better opportunities to maintain the standards of their lives. In this way the middle class is enjoying stable jobs at one end like white collar professionals as well as serving in multinationals and some people also offering their services in state owned corporations. Most of the people forming this section of society belong to age group between 25 and 45- the active population group of the society who wants to boost their lives on the same footings as Americans and European nations have gone through. However, this middle class section in China just appeared in the last 20 years because of continuous eco nomic growth and infrastructure development. This economic growth has developed a new social group that can enjoy, relatively, better facilities and higher income. The people of this section can own their property like cars and houses as well. Simply speaking, this group owns a societal stratum that is laying above the ordinary working class, however, still not the wealthiest (Dolven 2003, pp.

Supply, Demand and Equilibrium Price Essay Example | Topics and Well Written Essays - 1000 words

Supply, Demand and Equilibrium Price - Essay Example She does nothing but allows the market forces to increase the prices. This way the market demand curve will move from D to D2. A new equilibrium will now be formed as consequence where Supply curve meets D2 curve. At this stage the quantity will be great than the initial equilibrium quantity demanded will be 8000 and the prices will be greater $4.5 depending on the strength of the market demand. Some of the increased demand will be absorbed by the increase in price and equilibrium quantity supplied to the market will remain 8000 pies. This will result in increase in revenue for Mrs. Acres and consequently the increase the profits. Therefore, Mrs. Acres will choose this option if other options are not yielding better results than this one in terms of profits and revenue. However, by choosing this option her position will be vulnerable in the long-run and she can expect to lose in the broad perspective. In the long-run, high prices will encourage competition to enter the market and tak e some of the market share by keeping prices lower than competitors. As a result of this, in the long-run, her quantity supplied will be less than 8000, as charging high price will result in market share being lost to consumers. Similarly, as a result her sales may also experience a negative trend and she may lose out in the long run by raising prices. In other words, after the initial gain of increased revenue followed by increased, prices she may end up inviting a lot of competition to the industry and may lose out in the long run. The price of the pies will decline and come back to the normal equilibrium price of $4.5. In the long-run, the equilibrium price and quantity will be different because new companies can enter the market, whereas in the short-run, no new firms can enter the market. As a result of this long-run effects of this will be different than short run effects. Case 2: Mrs. Acres decides to increase supply to meet additional demand Case 2: Mrs. Acres meets the Market Demand In this option suppose, the initial quantity is again 8000, represented by the label q1 on the diagram at a place where demand and supply meet. However, in order to meet the demand, Mr. Acres decides to increase the staff and in turn the supply. This will mean that there will be not increase in the price but the quantity demanded will now rise to q2, which is greater than 8000 pie. In the long-run, her sales and price will remain constant depending on the market trend and depending on the type of competition that exist in the market. However, since she is meeting demand there is no room for competitors to enter the market unless they come up with an extraordinary product. Therefore, by choosing this option she is discouraging the competition in the market which is going to keep her profits and revenues constant in the long run also and she may continue to enjoy the success in the long-run also. And the best thing here is that she will have to share profits with no one like she has to do in the option 3. Here, in the long-run, no new company can enter the market because there is no space in the market as Shelly Acres is operating under the efficient conditions of both allocative and productive efficiency as a result in the long-run, there will be no other effect and short-run conditions will prevail. If the