should spend 35 minutes on this section. Use the data to support your answers where relevant. You may annotate and include diagrams in your answers. 1 One of the roles of the state in a mixed economy is to (1) A maintain price flexibility B allocate goods and services using the price mechanism C ration luxury goods D provide public goods Answer Explanation (3) . . . . . . . . . . . . .................................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Abstract: The beer industry in the United States is continually changing and therefore companies in this industry must be versatile. Their versatility comes in a variety of forms‚ from changing their product offering‚ to changing their strategic goals‚ and finally‚ recognizing opportunities and threats. This paper explores many aspects of the industry though the use of Porter’s five forces model. I will analyze the internal rivalry present in the industry‚ any buyer or supplier power that is present
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change in price of a commodity leads to less than one per cent change in quantity demanded by the consumers. Products that exhibit inelastic demand have an almost constant demand no matter the change in prices. Figure 1: Diagram illustrating inelastic demand As shown from diagram above‚ the price changes from P1 to P2 and quantity fall from Q1 to Q2. The decrease in quantity demanded is not proportional to decrease in quantity demanded.In perfectly inelastic demand‚ change in prices leads to
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true? (a) A profit maximising monopolist will always set price and output at a level where demand is price elastic. X (b) A profit maximising monopolist always produces where Average Revenue equals Average Cost (c) A profit maximising monopolist will‚ in long run equilibrium‚ always use a scale of plant that minimises long run Average Costs. (d) A profit maximising monopolist will always produce where marginal cost is greater than price. Question 2 Assume two rival car rental companies (Ace Rentals
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alternative‚ unless SHL is willing to decrease their price. A reduction in price however could tarnish the image of a brand like Harvey- given the aspirational target market of SHL. Any reduction in demand and thus sales of its clothes would make it more difficult for SHL to achieve its growth in revenue objective by 2016. Obviously the bigger the increase in interest rates the longer this increase rate rise lasts and the higher the income elasticity of demand for SHL’s products‚ the bigger the likely
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and services‚ and the demand for those products and services. In review of recent consumption patterns‚ the coffee market has experienced many changes according to an article written by Daniel Harrington. The article was titled “Coffee Prices 2011-2012 – Coffee Price Increase – Coffee Shortage”‚ which detailed the various aspects that are altering the standard consumption patterns in the economy for coffee. In recent years‚ the demand‚ or desire‚ for coffee has increased as well as the sustained and
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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‚ and Saffer‚ 2002). There are
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Price elasticity: products with high quality or being highly processed tend to be inelastic demand‚ while row materials are usually elastic. For example‚ a price increase in a car only leads to little decrease in demand‚ in the contrary; a price increase in oil could leads to huge change in market. Market-skimming pricing: two examples came to my mind when I saw this concept‚ Samsung and Apple. As I know that‚ Samsung often set an extremely high price when they release a new cellphone‚ after few
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demographic trends‚ net migration needs to be factored in‚ so both immigration and emigration need detailed consideration. Population growth and household formation Penang has a growing population. Greater demand for housing will contribute to increases in prices. This level of needs analysis needs to be much more detailed and linked to economic factors such as household income. For demographics ’ factor that also includes the age‚ social class and race or ethnicity. Age of the buyer also important that may
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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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