Managerial economics project

1. DEMAND AND ELASTICITY
OF
EARTH MOVING AND MINING EQUIPMENT
Guided By: Dr. Amit Sharma Group 8 (Sec B)
Kanika Aggarwal
Kishlay Saurabh
Krishna Agrawal
Kumud Sharma
Mahesh Bavirisetti
Milan M.

2. Equipments designed to move earth and
minerals in large earthmoving and mining
projects.
These equipments find their place in other
applications the use of bulldozers and articulated
trucks on road and highway projects

3.  Hydraulic Crawler Drill Rigs are hydraulic oil operated
crawler-mount multi-purpose drilling machine. These
drilling machines are designed to drill gas and water
detection and drainage hole, cable hole and geological
exploration hole in different angle in the underground
coal mine. These drilling machines also can carry out
the similar drilling work in the surface or tunnel
construction.

4. Here x-axis represent the quantity demanded while y –axis represent
the price of good. (from year 2003-04 to 2011-12)

5. Year Total production (in 0000)
2003 5.4
2004 6
2005 6.9
2006 7.3
2007 9
2008 7.9
2009 8.4
2010 10
2011 11.3
2012 12.4

6. Year avg product marginal product
2003 5.4 5.4
2004 3 0.6
2005 2.3 0.9
2006 1.83 0.4
2007 1.8 1.7
2008 1.32 -1.1
2009 1.2 0.5
2010 1.25 1.6
2011 1.26 1.3
2012 1.24 1.1

7. HERE X –AXIS REPRESENT DEMAND OF QUANTITY AND Y-AXIS
REPRESENT PRICE OF COAL (2001-2011)

8. HERE X-ASIX REPRESENT YEAR AND Y-AXIS REPRSENT
ELASTICITY

9. Increase in demand due increased international trade and
abundant supplies and insatiable demand for power from
emerging markets.
Also oil supply is in short and high priced, and this means
using a lot of oil in the economy is a competitive
disadvantage. Therefore using little oil and much coal is
seen as a good option.

10. year
Total Product
(metric tnnes)
2001 396194
2002 411844.5
2003 419532
2004 432047.6
2005 481400.3
2006 504908.2
2007 539485.5
2008 587255.3
2009 640524.5
2010 674878
2011 662585
2012 721418
ON X-AXIS : YEARS
ON Y-AXIS : OUTPUT

11. year avg product
marginal
product
2001 396194 396194
2002 205922.25 15650.5
2003 139844 7687.5
2004 108011.9 12515.6
2005 96280.06 49352.7
2006 84151.37 23507.9
2007 77069.36 34577.3
2008 73406.91 47769.8
2009 71169.39 53269.2
2010 67487.8 34353.5
2011 60235 -12293
2012 60118.17 58833
ON X-AXIS : YEARS
ON Y-AXIS : OUTPUT

12. HERE X-AXIS REPRESENT QUANTITY CONSUMED WHILE
Y –AXIS REPRESENT THE PRICE OF CRUDE OIL (2001-
2011)

13. HERE X-ASIX REPRESENT YEAR AND Y-AXIS REPRSENT
ELASTICITY

14.  Demand for oil increased for several years in 2007.
 Global economic slowdown reversed this trend
,demand fell for two consecutive years 2009 before
rebounding in 2010
 Market is maturing, using less fuel these days
,alternative energy, higher fuel efficiencies, not possible
for production capacity to increase in most oil-producing
nations. government instability in many oil-producing
nations, including Egypt, Iran, Iraq, Libya,
Nigeria, Sudan, Syria and Venezuela.

15. Year Total Product (barrels)
2001 776515.6
2002 797061.45
2003 826155.6
2004 856399.5
2005 886804
2006 917026
2007 982178.5
2008 1022255.5
2009 1045360
2010 1135880
2011 1188184.5
2012 1250490
ON X-AXIS : YEARS
ON Y-AXIS : OUTPUT

16. Year avg. product marginal product
2001 776515.6 776515.6
2002 398530.73 20545.85
2003 275385.2 29094.15
2004 214099.88 30243.9
2005 177360.8 30404.5
2006 152837.67 30222
2007 140311.21 65152.5
2008 127781.94 40077
2009 116151.11 23104.5
2010 113588 90520
2011 108016.77 52304.5
2012 104207.5 62305.5
ON X-AXIS : YEARS
ON Y-AXIS : OUTPUT

17. HERE X-AXIS REPRESENT THE QUANTITY DEMANDED
WHILE Y-AXIS REPRESENT THE PRICE OF GOODS(2006-07 to
2010-11)

18. HERE X-ASIX REPRESENT YEAR AND Y-AXIS REPRSENT
ELASTICITY

19.  Increase in supply due to stable mine
production , does not cope with the
tremendous increase in demand which has
caused its prices to increase a lot.
 Increase in demand due to use of gold as an
investment source

20. Year
Total product (metric
tonnes)
2007 513.71
2008 618.70
2009 587.74
2010 518.83
2011 727.92
2012 492.91
ON X-AXIS : YEARS
ON Y-AXIS : OUTPUT

21. year avg. product
marginal
product
2007 513.71 513.71
2008 309.35 104.98
2009 195.91 -30.96
2010 129.71 -68.91
2011 145.58 209.09
2012 82.15 -235.01
ON X-AXIS : YEARS
ON Y-AXIS : OUTPUT

22. HERE X –AXIS REPRSENT PRICE AND Y-AXIS REPRESENT
QUANTITY (2006-07 to 2010-11)

23. HERE X-ASIX REPRESENT YEAR AND Y-AXIS REPRSENT
ELASTICITY

24.  High and stable demand growth of copper is
attributed to its wide application in the industry of
electrical goods, electronics appliances
,semiconductor industry etc.

25. year Total product (metric tonnes)
2007 2710643
2008 1917420
2009 2268184
2010 2190731
2011 1905641
2012 2127959
ON X-AXIS : YEARS
ON Y-AXIS : OUTPUT

26. year avg product
marginal
product
2007
2710643.00
0 2710643
2008 954.890 -793223
2009 1129.011 350764
2010 1089.916 -77453
2011 947.609 -285090
2012 1057.634 222318
ON X-AXIS : YEARS
ON Y-AXIS : OUTPUT

27. X-AXIS REPRESENT QUANTITY CONSUMED WHILE Y –AXIS
REPRESENT PRICE (2006-07 to 2010-11)

28. HERE X-ASIX REPRESENT YEAR AND Y-AXIS REPRSENT
ELASTICITY

29.  SINCE INDIA IS VERY MUCH FOCUSED ON
INFRASTRUCTURE GROWTH SO COMING YEARS WILL
WITNESS A BIG DEMAND FOR CEMENT WHICH IN TURN WILL
FUEL THE GROWTH OF GYSPSUM INDUSTRY
 HIGH AND VERY STABLE DEMAND OF GYSPUSM CAN BE
ATTRIBUTED TO ITS USE AS RAW MATERIAL IN CEMENT
INDUSTRY.THAT IS THE ONLY REASON EVEN PRICE RISE
HAS NOT MADE A BIG DIFFERENCE IN THE DEMAND CURVE
OF GYPSUM

30. Year
Total Product (metric
tonnes)
2007 5665
2008 6139
2009 7126
2010 6923
2011 7145
2012 7468
ON X-AXIS : YEARS
ON Y-AXIS : OUTPUT

31. Year avg. product
marginal
product
2007 5665 5665
2008 3069.5 474
2009 2375.33 987
2010 1730.75 -203
2011 1429 222
2012 1244.67 323
ON X-AXIS : YEARS
ON Y-AXIS : OUTPUT

32.  Ceteris paribus condition does not exist in real time
situation.Increasing demand is the reason for increase
in the prices and demand is considered over a wide
period of time.
 Major factors for increasing demand are:
1. Population growth
2. Expanding industrial base is increasing the demand
for coal, copper, gold,gypsum,oil and gas.
 Increasing technology is the major drive for price rise
 Increase in income

33.  Lipsey R. and Chrystal A.(2012) “Demand and Supply
”’ECONOMICS,Oxford University Press inc, New York. (36-56)
 Lipsey R. and Chrystal A.(2012)”Elasticity of Demand and Supply”’
ECONOMICS,Oxford University Press inc, New York. (58-80)
 “Stastical profiles of Minerals ,2010-11 by Indian Bureau of Mines
,available at www.ibm.nic.in/imyb2010.htm
 “Indian Minerals Year Book 2011”by Indian Bureau of Mines, available
at www. ibm.nic.in/imby2011.htm
 http://www.heavyequipment.com/heavy-equipment/earthmoving-mining
 http://www.eurogypsum.org/_uploads/dbsattachedfiles/whatisgypsum.pdf
 http://www.indexmundi.com/energy.asp?country=in&product=oil&graph=c
onsumption