Smart Manufacturing Handling Preventive

Question: Discuss about the Smart Manufacturing for Handling Preventive. Answer: Introduction: In terms of Economics, a model is discussed with the help of the economics theory and also with the set of variables and logical associations. The modern economic theory is referred as the intricate machine[1]. The major job deals with the inadequate resources as well as the distribute of the output within the different agents. The agents are governments, individuals and also within the firms. The measurable signals refers that there is the orders that can diverts the complexity during the allocation of goods and the services. In addition, the tendency of the annual productivity of the developed nations is upward sloping. The economic model has a simple description of reality and also planned to determine the hypothesis for the economic performance. Nonetheless, all of the economic models are considered as subjective and it estimates the reality. It would highlight the observed occurrence. The government of an economy needs to ignore the predictions, as the predictions are tempered b y the arbitrariness fundamental information, which can describe the validity of the theories. No economic models provide a relevant explanation of the reality. The major reason of this inadequate attention can create a link among the entire demand, wealth and excessive risks. It can be mentioned that there will be considerable research into the exposure. This research highlights to the behavioral equations in order to present the economic models. The economic models are needed to adapt the existing equations in order to make a connection with the help of new equations and the financial sector. Economists focus to the usage of the tools to test the models that highlights the statistics and the case studies. The main drawbacks highlight the effective market hypothesis and the logical expectations hypothesis. It can be stated that the market operators not only behave rationally[2]. In this context, economists Keynes explained the fact and therefore, economics is a segment of moral science. In this purpose, it can be stated that the price elasticity of demand is a measurement, which refers that the connection between the quantity demand of the goods and the change of the price of the goods[3]. Therefore, price elasticity of demand= (Percentage change in demand/ percentage change in price). Price elasticity of normal goods: It is known that in case of the normal goods, the demand for the goods will be increased with the rise in the income level. However, if the level of price of the products would increase, then the demand for the goods would be decreased. From the above figure, it can be observed that the demand for the goods would rise with the increase in the income level. However, if the level of price of the normal goods would rise, the quantity purchased by the customers would be decreased. This would decrease the price elasticity of demand for the normal products would decrease. As per the concept of consumer theory of economics, the giffen goods are the goods, which are consumed by the customers more if the price of the products would rise and the level of income would decrease[4]. In this context, salt and sugar are the examples of giffen goods. The demand for the giffen goods is perfectly elastic. Therefore, it can be inferred that if the price of the products would be fluctuated, then the percentage change for the quantity demand would be equivalent. The above figure highlighted that it can be stated that the demand curve for the giffen goods is perfectly inelastic. If the level of income would decrease or the level of price would rise, then the percentage of quantity demand would be raised. On the other hand, it can be observed from the above figure is that with the rise in the price level from P1 to P2, the demand for the giffen goods would not be changed. Hence, it can be inferred that the price elasticity would be raised. In addition, it can be pointed that the income effect would dominate the substitution effect of the goods[5]. Price elasticity of luxury goods: In terms of economics, luxury goods are the goods, for which the demand for the products would be increased greater than the rise of the level of income. On the other hand, it can be mentioned that the change of the quantity demand for the luxury goods would be decreased when the price level of the products would be increased. Nonetheless, if the income level of the customers would increase, then the demand for the luxury goods would also increase. It can be stated that the price elasticity of the luxury goods is perfectly elastic. Some of the examples of luxury goods are cars, air conditions, jewellery etc[6]. The above diagram highlights that if the price level of the luxury goods would rise from the P1 level to P2, then it can be observed that the percentage of quantity demand would increase from D1 to D2 when the level of income increase. Therefore, the change of the price level is lower than the change of the demand for the luxury goods, which can be clearly observed in the in the above diagram. As a result, it can be mentioned that due to the change of the price level, the quantity demand would also increase when the income level would increase. According to Varian (2016), the price elasticity of demand would be inelastic for the upper income group people. Bibliography Coglianese, J., Davis, L. W., Kilian, L., Stock, J. H.. Anticipation, tax avoidance, and the price elasticity of gasoline demand.Journal of Applied Econometrics (2016). Koh, Y., Lee, S., Choi, C.. 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