Classification of Products Consumer Products Business Products (Use by household consumers for nonbusiness purpose) Convenience Goods: Frequent purchases with minimum efforts‚ readily accessible when consumer demands arises.e.g. Soaps‚ Newspapers
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UNIT-1 1.Define Economics and Explain the term Industrial Economics . The father of Economics Adam Smith economics as ‘An inquiry into the nature and causes of the wealth of nations’ According to Alfred Marshall ‘Economics is the study of mankind in the ordinary business of life‚ it examines that part of individual and social action which is mostly connected with the attainment and with the use of the material requisites of well being. Explanation- Economics is the study of man’s actions in
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DEMAND FOR GASOLINE According to the law of demand‚ when the price of a good and the quantity demanded have an inverse relationship. When the price of a good increases‚ the quantity demanded decreases. There are various factors affecting the demand for gasoline. These include: 1. The availability and prices of substitutes and complements: A good is referred to as a substitute for another good‚ when it can be used as a replacement for the good. When the price of one good goes up‚ the demand for
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be done in paper form* and on the internet*. The consumers will be surveyed at random on what they look for in a grocery store. Areas of Questioning I would work closely with Clifton’s Grocer Store in developing the questionnaire. Questions considering the survey will include but are not limited to: What are the most popular goods that consumers purchase? Where does the consumer shop for a value? What prices will consumers pay for specific products? Overall rating
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importance of income elasticity to firms. GENERAL VIEW OF INCOME ELASTICITY IMPORTANCE TO FIRMS Mike (2013: 19:10)‚ asserts that the “Income Elasticity of Demand” measures the rate of response of quantity demand due to a raise (or lowering) in a consumers income. This implies that the responsiveness of the demand for particular goods to a change in the income of the people demanding the goods‚ ceteris paribus. It is calculated as the ratio of the percentage change in
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hypermarket located in India appeal to consumers and orient them to shopping in larger stores? - The trick lies in differentiating themselves from local kirana stores. If a hypermarket is offering same products‚ a customer will obviously prefer kirana store over the hypermarket because of the convenience and long years of service. Turning shopping into an experience should be the differentiating factor. This can be done by understanding the consumption basket of a consumer in an area‚ introducing new products
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a firm can allocate the given advertising budget between different media of advertisement. 4. What kind of relationship would you postulate between short-run and long-run average cost curves when these are not U-shaped as suggested by the modern theories? 5. How do demand forecasting methods for new products vary from those for established products? AMITY SCHOOL OF DISTANCE LEARNING Post Box No. 503‚ Sector-44 Noida – 201303 Managerial Economics Assignment B Marks 10 Answer
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the harder it will be to change quantity consumed‚ even with large changes in price. For the most part‚ Goods with elastic demand tend to be goods which aren’t very important to consumers‚ or goods for which consumers can find easy substitutes. Goods with inelastic demands tend to be necessities‚ or goods for which consumers cannot immediately alter their consumption patterns. Elasticity of demand measures the responsiveness of change in quantity demanded of a good because of change in prices. If a
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1. Evaluate the consequences of offering a single ticket for the concert series either in addition to‚ or in place of‚ offering the tickets for each concert separately. The primary aim here should be to maximize profit. Below table gives the Willingness –to-pay of Concert Patrons: Case 1: Only Bundling Bundle at $50- This is the maximum that the last two categories of patrons are ready to pay. Hence‚ the revenue we get is $200. Bundle at $60- Only the top two categories of patrons are ready
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Explain the concept of elasticity of demand In the real world‚ prices of different products vary day by day‚ however‚ the effect it has on the demand is a concept that is very important to understand. When a consumer has an ability or willingness to buy a certain number of products at a given price‚ it is known as demand. Elasticity of demand is the measure of change in quantity demanded of a product when there is change in factors that effect demand. There are 3 main types of elasticity of demand;
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