emerging suppliers. This combined with a large and successful marketing campaign increased sentimental value and perception of scarcity‚ which increased consumer’s willingness to pay the prices‚ set by the cartel. The perception of scarcity ultimately made demand inelastic‚ and allowed for DeBeers to set an optimal linear price. While price discrimination is often seen as the best way to increase consumer surplus and minimize dead weight loss‚ in DeBeers case‚ as is the case with many luxury goods
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MULTIPLE CHOICE (CHAPTER 4) 1. Using a sample of 100 consumers‚ a double-log regression model was used to estimate demand for gasoline. Standard errors of the coefficients appear in the parentheses below the coefficients. Ln Q = 2.45 -0.67 Ln P + . 45 Ln Y - .34 Ln Pcars (.20) (.10) (.25) Where Q is gallons demanded‚ P is price per gallon‚ Y is disposable income‚ and Pcars is a price index for cars. Based on this information‚ which is NOT correct
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t No longer is the term ‘Corporate Social Responsibility’ a novel idea amongst businesses. A 2011 sustainability study by MIT showed that sustainability‚ in the US at least‚ now plays a permanent part in 70% of corporate agendas. Organisations such as Unilever haven’t simply been championing sustainable business as a form of corporate philanthropy. Since implementing their Sustainable Living Plan‚ they have increased growth and profits. Quite simply‚ doing good is good for business. How have Unilever
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to experience working in different Government Departments. I also hope to understand some of the underlying social phenomenon and problems existing in Hong Kong‚ such as inequality of wealth‚ housing problem and reform movements. By establishing an independent and critical mind over these issues‚ I wish to come up with possible solutions to tackle with these problems. I hope to both contribute and learn as an Intern. By applying my knowledge of current affairs‚ I wish to experience and view these
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Answers of Managerial Economics Homework #2 Chapter 5~Chapter 9 1.Using figure 5.3 as a basis‚ construct a series of four figures to show the effect of an increase in the demand for tanker service on the market price when (a) demand is extremely inelastic‚ (b) demand is extremely elastic‚ (c) supply is extremely inelastic‚ and (d) supply is extremely elastic. Answer: [pic] [pic] [pic] [pic] 2.Industry researchers R.S. Platou predicted
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The article discusses China’s growth in these recent years. It forecasts that China’s growth is not sustainable; thus growth rate will cease next year because the country is operating at full potential‚ facing the risk of overcapacity. In addition‚ China now has to face the severest national debt in its history‚ which puts its economy in extremely vulnerable state. The author also argues that China should stop relying on strong fiscal policy‚ but to initiate an economic reform if it wants to keep
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Question 1 1. Consumption spending is $4.5 billion‚ gross private domestic investment is $3 billion‚ and government expenditures are $2 billion. If GDP is $14 billion‚ which of the following could be true regarding exports and imports in the economy? Answer Exports are $6 billion‚ and imports are $8.5 billion. Exports are $15 billion‚ and imports are $10.5 billion. Exports are $4.5 billion‚ and imports are $2 billion. Exports are $9 billion‚ and imports are $6 billion. 10
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Identify an example through research of a business that has temporarily shut down operations in the short run. What led to this decision? Did the firm resume operations at a later date? Identify an example through research of a business that has temporarily shut down operations in the short run. What led to this decision? Did the firm resume operations at a later date? Identify an example through research of a business that has temporarily shut down operations in the short run. What led to this decision
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Harris ECN 3000 Homework #1 Please show your work and answers to all parts on separate paper. It will probably be in your best interest to keep this sheet and make a copy of your answers since I may not return your graded homework before the test. Use the following information to answer questions 1-13 below. Two countries‚ Athens and Troy‚ produce two goods‚ ships and food‚ according to the following production functions: 1 ship = 4 capital + 2 labor 1 food = 1 capital + 3 labor. Athens
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1 INTRODUCTION 1.1 Definition of economics Economics is a social science‚ positive as well as normative‚ divided into microeconomics and macroeconomics‚ concerned with how society allocates limited factor inputs to produce goods and services to satisfy unlimited human wants. 1.2 Economics as a social science A social science is the study of a particular aspect of human behaviour using the scientific method. Examples of social sciences are economics‚ sociology and
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