during peak periods with passenger car customers. Rationale: This strategy works best for Eurotunnel to gain market share for three main reasons: * Passenger preference among Le Shuttle users * Patterns among peak travelers * Price elasticity of freight traffic Among users of Le Shuttle passenger car service‚ it was noted that the top three important factors in crossing included reliability (70%)‚ value for money (65%)‚ and speed (30%). As reliability is assumed equal between the tunnel
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a more demand regardless of the price. Depending on what types of products the seller has to sell will determine if they are necessities and will be elastic or inelastic. The total-revenue test is used to help determine how the prices are affected by the demand and quantities of products sold. The total revenue formula is TR = P x Q; TR being total Revenue‚ P being the price of the units and Q being the quantity of goods sold. With this method‚ we are estimating the price of elasticity of demand
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Course: IB Economics SL Commentary number: 1 School name: Candidate name: Candidate number: Date commentary was written: 24 May 2014 Section of the syllabus to which the commentary relates: Section 1 – Microeconomics Word count: 745 Source of extract: Richard J. Brennan‚ Published on Thu May 01 2014‚ Tax on cigarettes going up http://www.thestar.com/news/queenspark/2014/05/01/tax_on_cigarettes_going_up.html Article: Tax
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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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