Price discrimination Price discrimination is the practice of selling the same product at different prices to different customers‚ when there is no difference in the cost to produce the product. Price discrimination is done to maximize profits. This occurs when market prices are set differently to different buyers‚ according to the willingness of each buyer to pay (demand curve) rather than setting a uniform price. It can be seen in the image below how if the seller kept the uniform price of Africa’s
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ason/ (Accessed 27 January‚ 2013) Boon‚ Peter http://www.theborneopost.com/2012/11/27/consumers-complain-cooking-oil-sold-at-higher-than-fixed-price/ (Accessed 20 January‚ 2013) Investopedia. 2013. Shortage. http://www.investopedia.com/terms/s/shortage.asp#axzz2JErdrnik Johnson‚ Matt. 2013. Economic Basics: Supply and Demand. http://www.sophia.org/economic-basics-supply-and-demand-tutorial Riley‚ George. 2012. Consumer and producer surplus. http://www.tutor2u.net/economics/revision-notes/a2-micro-consumer-producer-surplus
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Nicholas Benyola Professor Mansourian Econ 201- 25 17 May 2012 Microeconomics Research Paper Minimum Wage In the United States‚ minimum wage has remained at a low number for several years. Minimum wage is defined as the lowest possible income that an employer can legally pay an employee. This ensures that all people are fairly paid and not defrauded by companies or businesses. Minimum wage is considered a price floor and the minimum wage laws determine the lowest price possible that any
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PRINCIPLES OF ECONOMIC (DIFFERENCE BETWEEN MICROECONOMICS AND MACROECONOMICS) CERTIFICATE IN ESTATE AGENCY (CEA) HAFIFI BINTI HAMDAN 940113-10-5504 LECTURER: MRS. NORZIHA BINTI ISMAIL DIFFERENCE BETWEEN MICROECONOMICS AND MACROECONOMICS The study of economics is divided into microeconomics and macroeconomics by the modern economists. Both of them discuss the economic activities but are used in different sectors under different circumstances. In spite of having some similarities‚
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differences between microeconomics and macroeconomics‚ although‚ at times‚ it may be hard to separate the functions of the two. Microeconomics and macroeconomics are the two major categories within the field of economics. Microeconomics is the branch of economy‚ especially such topics as markets‚ prices‚ industries‚ demand‚ and supply. Microeconomic concentrates on the difficulties of the markets for services and goods‚ and how the price affects the growth of the markets (Microeconomics 2000-2010). Microeconomics
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What is Economics? Economics is the study of choices Choices must be made because resources are scarce Make a list of all the stuff you like to acquire assuming unlimited income Dr. S Home on ICWW Tons of boats F-350‚ Club Cab Season tickets to NYY‚ NJ Nets‚ NY Giants Condo in NYC Tickets to Cup Races Mobile Home Triumph TR-6 Toyota Landcruiser Realistic income Home near ICWW A boat Occasional tickets Toyota 4 Runner Choices mean we make trade-offs Opportunity Cost Informal
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economic theories of present -Economists make assumptions; simplify the complex world and make it easy to understand E.g. to study international trade‚ assume the world consists of only two countries to focus our thinking -Different assumptions answer different questions and using different assumptions when studying the short-run and long run effects of a change -Economists use models composed of diagrams and equations to simplify reality in order to improve our understanding of it Circular
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are three major topics that tend to rule these debates. Regardless on someone’s political view of immigration‚ everyone should realize how it has and is shaping the United States today. Based on both positive and negative essays on immigration by Roberto Rodriguez and Star Parker‚ one can conclude that immigration is good‚ but should be limited. The economic‚ fiscal and demographic effects are three major topics that tend to rule the debates on immigration and its laws. Rodriguez points out in his
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Economics IB past paper questions Structural questions 1. (a) “The price elasticity of demand and the price elasticity of supply for many primary commodities tend to be low.” Explain what is meant by this statement‚ and how this contributes to the problem of price instability for primary commodity producers. [10 marks] (b) Evaluate the view that it is best to allow primary commodity prices to be determined purely through the free interaction of market forces. [15 marks] 2. Explain what
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lower price increase the quantity demanded (Mankiw‚ p.68). 3. Does a change in consumers’ taste lead to a movement along the demand curve or a shift in the demand curve? Does a change in price lead to a movement along the demand curve? Explain your answer. A change in consumers taste leads to a shift in the demand curve. Yes a change in price leads to movement along the demand curve. Any change that increase quantity demanded leads to shift in the demand curve which is an increase in demand (Mankiw
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