Opportunity cost The true cost of something is what you give up to get it.(This includes not only the money spent in buying (or doing) the something‚ but also the economic benefits (UTILITY) that you did without because you bought (or did) that particular something and thus can no longer buy (or do) something else.) Factors of production The ingredients of economic activity: land‚ labor‚ capital and enterprise. Economic Development The scope of economic development includes the process and
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is to note that if quantities of both goods doubled‚ the MRS would not stay the same and hence would not equal the price ratio‚ which has stayed constant. PROBLEM 3 3. With some services‚ e.g.‚ checking accounts‚ phone service‚ or pay TV‚ a consumer is offered a choice of two or more payment plans. One can either pay a high entry fee and get a low price per unit of service or pay a low entry fee and a high price per unit of service. Suppose you have an income of $100. There are two plans. Plan
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satisfaction theory and informed-desire satisfaction theory is like comparing a Red Delicious Apple to a Braeburn Apple. Both have a similar dark red appearance however‚ they have a different taste‚ or result just as the two theories of what is intrinsically valuable‚ good for its own sake‚ and what leads to a valuable life while similar‚ yield a different result. The first‚ Desire satisfaction theory‚ argues that all and only the satisfaction of intrinsic desires has intrinsic value. Under this theory the
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Contents 1. Introduction Demand and supply is one of the most essential fundamental concepts of economics and it controls the behavior of market economy. Purpose of assignment is to study the reasons for increase in price of egg over the period. Egg price at markets may be affected by many factors related to demand and supply. Article says that the main cause for the price increase attributed to increases in price of inputs‚ especially in feed prices. In order to elaborate the topic
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(See Figure 4) The income elasticity of the averages turned out to be -2.21. (See Figure 3) This means that Stagelights rental good is considered inferior. As income falls‚ Stagelights’ rentals become more attractive to consumers. This makes sense‚ because as income increases consumers are more willing to spend more at the movie theatre and less on rentals. The income elasticity calculation does go against Stagelights target market. The rentals are considered an inferior good‚ but he is targeting the
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demand and decreased supply. The equilibrium price point for manufacture is $3.55. Producers can supply 20 units and demand will equal supply. A floor price greater than the $3.55 will cause over production‚ and thus a surplus of the mittens. Consumers would reject the higher prices for the product and cause a decrease in demand. An increase in the prices of Sub Good A and Complimentary Good C‚ independently applied‚ will cause opposing effects .
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shortage of 30 units. B. shortage of 15 units. C. excess supply of 30 units. D. excess supply of 12 units. Answer: A 3) Which of the following would not shift the demand for IPAD? A. drop in price of IPAD. B. drop in price of Kindle. C. consumer’ income doubles. D. Apple increase the advertising of IPAD. Answer: A 4) Suppose the demand for good X is given by Qdx = 10 + axPx + ayPy + aMM. If ay is positive‚ then: A. goods y and x are complements. B. goods y and x are inferior
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Food Consumption Trend: Turning Issues into Opportunities M Nasir Shamsudin Jinap Selamat Alias Radam Abdul Gh iff Ramin Abd l Ghariff R i Tay Yeong Sheng Ahmad Hanis Izani Abdul Hadi Presented at the Agribusiness Marketing Conference Organised by Federal Agricultural Marketing Authority 23 February 2010 With Knowledge We Serve Trends i F d C T d in Food Consumption ti Typical of developing economies Stages: Initial increase in traditional staple foods Increase in non-traditional staples
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PART A: Consumer Segments 1) The inexperienced high school sports team - ranges from 13-18 years old - low usage/travel rates - no/unsubstantial loyalty status - require more customer assistance due to unfamiliarity of traveling alone - seeks great value for low budget As these customers don’t travel often‚ WestJet has to look for ways to target this segment other than with loyalty programs. With many high schools facing budget cuts (Yakima Herald)‚ sport departments will be looking for lower airfare
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availability? Mr. Brijmohan Lall Munjal‚ chairman‚ Hero Group of Companies‚ addresses some of these issues in an interview with Soumya Kanti Mitra. What makes the 2-wheeler segment so impervious to demand fluctuations? A 2-wheeler is the most necessary consumer durable good owned by lower Middle‚ and middle class‚ households. There is multiple ownership of this product in such households. Firstly‚ there is an income effect that influences 2-wheeler demand. Per Capita GDP growth of 3.7 per cent per annum
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