Eco 365 Week 1
Consumption Pattern of Ammunition The consumption pattern of ammunition in the United States has been on an upward trend beginning in 2008. By analyzing these articles it is apparent that there is a demand that supply cannot keep up with. The American people feel entitled to own ammunition and firearms for protection and personal reasons. Demand for ammunition has risen at a rate hard to match by the supply due to many contributing factors. It is also apparent that it is
Utility
The utility derived from ammunition consumption comes from the want for a feeling of safety and entitlement. The American people believe that the 2nd Amendment covers both firearms and ammunition for those firearms since without the ammunition, firearms are just large paperweights. With this comes a sense of entitlement. The national violent crime rate is rising and with social media and a more active media overall, the sense of danger is greater now than in any time before now. Constant images and stories of violent acts instills a want for protection which comes easily in the owning of a firearm. “The FBI’s National Instant Criminal Background Check System reported that 6.1 million background checks for gun sales were issued from January to May, an increase of 25.6 percent from the same period the year before”(NBCNews, 2009). With the purchase of a firearm comes the need for ammunition, both as a ready supply and practice rounds needed for proficiency.
Demand Change The demand for ammunition in the United States has been on a rise since 2008. “Americans usually buy about 7 billion rounds of ammunition a year, according to the National Rifle Association. In the past year, that figure has jumped to about 9 billion rounds, said NRA spokeswoman Vickie Cieplak”(NBCNews, 2009). This is caused by many different factors that have occurred in the last several years. The Obama administration has made gun control a priority and the amount of ammunition a person can purchase is
Utility
The utility derived from ammunition consumption comes from the want for a feeling of safety and entitlement. The American people believe that the 2nd Amendment covers both firearms and ammunition for those firearms since without the ammunition, firearms are just large paperweights. With this comes a sense of entitlement. The national violent crime rate is rising and with social media and a more active media overall, the sense of danger is greater now than in any time before now. Constant images and stories of violent acts instills a want for protection which comes easily in the owning of a firearm. “The FBI’s National Instant Criminal Background Check System reported that 6.1 million background checks for gun sales were issued from January to May, an increase of 25.6 percent from the same period the year before”(NBCNews, 2009). With the purchase of a firearm comes the need for ammunition, both as a ready supply and practice rounds needed for proficiency.
Demand Change The demand for ammunition in the United States has been on a rise since 2008. “Americans usually buy about 7 billion rounds of ammunition a year, according to the National Rifle Association. In the past year, that figure has jumped to about 9 billion rounds, said NRA spokeswoman Vickie Cieplak”(NBCNews, 2009). This is caused by many different factors that have occurred in the last several years. The Obama administration has made gun control a priority and the amount of ammunition a person can purchase is
References: Investopedia(2014) Price Elasticity of Demand retrieved from http://www.investopedia.com/terms/p/priceelasticity.asp Kozak, Brad(Feb 21, 2010) Why is Ammunition so Expensive? retrieved from http://www.thetruthaboutguns.com/2010/02/brad-kozak/why-is-ammunition-so- expensive/ NBCNews(Sep 23, 2009) America armed, but not necessarily loaded retrieved from http://www.nbcnews.com/id/32988155/ns/us_news-life/#.UyoVJvldWcs Retail Today(June 27, 2013) Guns and Ammo demand drives sporting goods sales at Walmart too retrieved from http://www.retailingtoday.com/article/guns-and-ammo-demand- drives-sporting-goods-sales-walmart-too