Write your name here Surname Other names Pearson Edexcel Centre Number Candidate Number International Advanced Level Economics International Advanced Subsidiary Unit 1: Markets in Action Wednesday 15 January 2014 – Afternoon Time: 1 hour 30 minutes You do not need any other materials. Paper Reference WEC01/01 Total Marks Instructions black ink or ball-point pen. • Use in the boxes at the top of this page with your name‚ • Fill centre number and candidate number. all the questions in Section
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What Is Revenue Management? The science and expertise of forecasting immediate consumer demand at the micro-market stage when optimizing cost and accessibility of your goods is called as revenue Management. The implementation of RM philosophy is indefinite‚ and has the prospective to yield remarkable stages of revenue. Enterprises that have used RM procedures have seen profits rising greatly by 7 percent exclusive of incorporating considerable sum of capital overheads‚ providing outcome in a revenue
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problem of alcohol abuse by making the assumption that alcohol addiction and its demand are associated with the price of alcohol. We apply the ceteris paribus assumption that all other associated costs remain unchanged such as price of manufacturing‚ availability‚ and distribution costs. In a report written for the National Institute on Alcohol Abuse and Alcoholism‚ the authors state “Economic studies of alcohol demand focus mainly on the effects of price on alcohol consumption” (Chaloupka‚ Grossman
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measure whether an industry exhibits oligopoly : 2. Differentiated products 3. Relatively high barriers to entry 4. Strategic behavior • • is used to study strategic behavior 5. Many models to describe oligopoly • Kinked demand curve • Duopoly : Cournot‚ Stakleberg‚ Bertrand • Price leadership (II) STRATEGIC BEHAVIOR (1) Collusive agreements and Cartels Collusive agreements is defined as an agreement between two or more producers to restrict output in order
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bad‚ these fields do not do so good either. They all depend on the economy staying in a good state‚ in order for them to stay healthy. In this paper I will show how the economy affects the home building industry. I will show the price elasticity of supply and demand‚ negative and positive externalities‚ how wage inequality is measured‚ and the monetary and/or fiscal policies that have affected the home building industry. The housing market is a business where people are buying and selling houses
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University of Toronto ECO333–Urban Economics Problem Set 2 Due: 24 October 2014 1. Question 2.1 from Brueckner (p. 250) (book available at http://go.utlib.ca/cat/8842730). 2. (a) Suppose the city fathers in a small Midwestern town‚ which was started over 100 years ago as a county seat‚ originally zoned all residential lot sizes in the town to be the same size. All work takes place either at the county seat building on the square in the middle of town or at shops adjacent to the square. Everyone drives
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to negotiate low purchase prices with typical firms in this industry? a. Answer- Consumers can’t negotiate prices with fast food restaurants. However‚ there is a large degree of internal rivalry in the industry‚ with a very strong cross-price elasticity present in the industry. This encourages low prices due to a strong degree of substitution and gives consumers back some power. 2) To what extent do purchase prices differ from those that would prevail in a market with a large number of fragmented
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problems. So we have a situation here high prices cause lower revenues due to lower consumption levels. This is seen in left shift in demand for gas. Larger capacities and high inventories will affect supplies- the supply curve may shift to right/ remain stable. Both situations imply lower prices for gas‚ and more volatile revenues stream. However the demand for gas is inelastic due to the nature of the good itself. This could imply that revenues do not dip as prices rise. However the prices
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differ in their demands for a given good or service‚ a firm has market power‚ and the firm can prevent or limit arbitrage. Consider a firm that can sell q(p) units when it charges price p. The firm’s profits are π(p) = pq(p) - c(q( p)) Where c is the cost function‚ function q is the demand facing the firm‚ that is‚ it gives the quantity the firm can sell. In the case of monopoly‚ the demand facing the firm and the market demand are the same. Assume that q is a downward-sloping demand curve. This
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Prices James D. Hamilton This paper examines the factors responsible for changes in crude oil prices. The paper reviews the statistical behavior of oil prices‚ relates these to the predictions of theory‚ and looks in detail at key features of petroleum demand and supply. Topics discussed include the role of commodity speculation‚ OPEC‚ and resource depletion. The paper concludes that although scarcity rent made a negligible contribution to the price of oil in 1997‚ it may be an important feature of the
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