Equilibrium Price Equilibrium Quantity (Refer Diagram No 01) =Rs.700/=200 units 1 Diagram No 01 1000 900 900 900 800 800 800 700 700 PRICE 600 600 500 600 500 500 Demand quantity 400 Supply quantity 300 200 100 0 0 50 100 150 200 250 300 350 Quantity (b) If the price is Rs 600/-‚ which is below equilibrium price and there will be an excess demand (150 CD’s to 250 CD’s). Due to the competition among buyers to buy CD’s‚ competing buyers would offer higher price to induce
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Terms of trade refers to the measurement of a country’s export-prices with respect to its import prices‚ and is considered advantageous to the dual economies only in the case of it lying somewhere between the two production possibility frontiers. The measurement of terms of trade is specifically expressed through an index number by dividing the price for exports by the price for imports‚ only to ultimately multiply the answer by one hundred. This measurement helps an economy understand where it stands
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GE 301 Engineering economy AN INTRODUCTION ECONOMICS Definition – It is one of the social sciences‚ which consists of that body of knowledge dealing with people and their assets or resources. ECONOMICS Resource (Definition) – ● It is a material or asset that is transformed to produce benefit‚ and in the process may be consumed or made unavailable. Asset (Definition) – ● ● It is anything tangible or intangible that is capable of being owned or controlled
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do with price elasticity‚ which is a measure used in economics to show the responsiveness of the quantity demanded of a good or service‚ in regards to the quantity demanded for a good or service to a change in its price. It will also give the percentage change in quantity demanded in response to a change in price. (wow.coursesmart.com/97812568314/page 551). A measure of the relationship between the change in quantity demanded of a particular good and a change in its price relates to prices sensitivity
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the result of the price changing and the consumer still demanding the produce. As for inelastic‚ this is the result of the price changing although the demand decreases. The difference between elastic and inelastic are determined by the demand of the product; as for elastic the consumer will always have a demand for the product such as water‚ food‚ and gas‚ and for inelastic the consumer will change the demand based on price of the product. Producers are interested in elasticity‚ because this enables
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CVS Pharmacy more consistently and effectively. The purpose of this paper is to select a more realistic good or service for an existing industry. The paper will identify the market structure‚ along with elasticity of the product and will also include the way the pricing will relate to elasticity of the product. Furthermore‚ the paper will include the way the changes in the quantity supplied as a result of the pricing decisions will affect marginal cost and marginal revenue. Moreover‚ the paper will
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In this case‚ Qantas is the monopolist in the markets thus it role of ‘price maker’ can be explained as Qantas would adjust the price by varying the quantity sells. Under this background‚ Qantas may use price discrimination to achieve high profit. As it knows the exact willingness to pay for each customer‚ Qantas would charge different customers accurately based on their different price elasticity of demand which is perfect price discrimination strategy. As a result‚ Qantas wins the total producer
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comparison with economic theories‚ recommendations to guide the marketing strategy have been made. These point to focussing more strongly on the domestic market based on the higher levels of government spending‚ backed by a high oil price‚ the relatively low impact of cross elasticity with airfares and the lack of currency fluctuation risk for sales. Firstly I will consider the cost of production and some scenarios which may impact on the marketing strategy. The main costs in providing a hotel service are
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Question 1 4 out of 4 points A firm selling in two markets is practicing price discrimination Selected Answer: b. when it is charging different consumers different prices and the price difference is not based upon cost differences. Question 2 4 out of 4 points To maximize profit a price discriminating firm should Selected Answer: d. both a and c Question 3 0 out of 4 points If a firm is selling a product in two markets‚ A and
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MBA Managerial Economics Review Questions for the Final Exam (Illustrative Answers) PRICE IS LOWER IN A MORE ELASCTIC MARKET!!!!!!!!!! 0.1-1 Introduction:Managerial Decision-Making and Market Processes (a) How does operational effectiveness differ from organizational strategy? Operational effectiveness is achieving excellence in individual activities while organizational strategy is about combining these activities to fit and reinforce one another and create competitive advantage and
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