Microeconomics and

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Microeconomics and The South African Brewery
Mitch Erdely, Ashleigh Kazmeraski, Jeff Rich,
Michael Sneeringer, Lucas Sulek
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Man Law Beer Overflow
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Microeconomics and SABMiller

• SABMiller and The Stock Market
• Nonprice Competition
• Regulations/Laws Importing / Age Limits
• Diseconomies of Scale
• Why Wages Differ Differences in Ability
• Natural Resources and the Corporation Sorghum
• Inferior Goods and Substitutes Other Beer
  Brands
• Absolute and Comparative Advantage
• Changes in Income
• Elasticities of Demand Elasticities of Beer

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The Stock Market

• a. Frederick Miller
• b. Jacob Letterstedt
• c. W.R. Grace Co.
• d. Phillip Morris
• e. SAB/Miller
• London and South
• Africa

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Open 1068.00
High 1077.00
Low 1062.00
8.00 (0.75)
12.04.06
London Stock Exchange
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Nonprice Competition
Any action a firm takes to increase the
demand for its product, other than cutting
its price.
new sign man law
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The Legal System and SABMiller

• United States Legal Drinking Age
• Importation Laws
• Warning Labels

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Diseconomies of Scale

• Develop More Layers
• Peter Principle

Distribution Management
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Natural Resources
Sorghuman Old World tropical grass that is used
for the making of Eagle Lager, an affordable,
high quality clear beer.
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Why Do Wages Differ? Differences in Ability

• Graham Mackay, 56, is the Chief Executive of SAB
  Miller plc. His total remuneration is
  4,974,946.25, including annual base salary, an
  annual cash bonus plan, long-term incentives
  through participation in share option and
  performance share plans, pension contributions,
  other security and health benefits, and benefits
  in kind.

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Economic Growth

• Capital change
• Technological change

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Inferior Goods and Substitutes

• Inferior Good Rise in income will decrease
  demand
• Substitute Used in place of another good
• Fulfills the same purpose

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Elasticities of Demand

•   Price elasticity of beer is estimated to be
  around -1.39-.22
• (inelastic commodity)   
• Elasticity of beer is estimated to be around
  -.17- -.12
• (inelastic demand)

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Changes in Income

• Low income
• Medium income
• High income

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Man Law no fruit