1a) Price elasticity of demand (PED) measures the degree of responsiveness of the quantity demanded of a good to a given change in price of the good itself‚ ceteris paribus. It is found by taking the percentage change in quantity demanded of good X divided by the percentage change in the price of good X. The numerical value of the price elasticity of demand is always negative due to the inverse relationship between quantity demanded and price as stated in the law of demand. When we interpret
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ever heard of the catch phrase‚ “What does that have to do with the price of tea in China”. Most people probably are familiar with that phrase as a way of telling a person that the point they are making doesn’t have much to do with the main topic of the discussion. Some think the phrase originated from economists who “describe everything economic as affecting everything else.” This week’s discussion topic may not be about the price of tea in China but instead may I lead in my response to this week’s
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The Odyssey What is the nature of free will? Are gods or humans responsible for what happens? The Odyssey is a poem which is about a man named Odysseus (also known as Ulysses in Roman myths) who is on his way back to Ithaca where his home is with his wife Penelope and his son Telemachus but is said to be dead. Telemachus goes on hunt for Odysseus because he believes his father is still alive. On Odysseus’ way back to Ithaca he goes through many challenges such as defeating the Cyclops‚ Sirens
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Price Elasticity of Demand is used to measure the responsiveness of the quantity demanded to the change in price. It is measured by the percentage of change in quantity over the percent change in price [% ∆ in quantity demanded/ % ∆ in price]. Price elasticity of demand (PED) does not have any units as all the units cancel out while calculating it. Also‚ │PED│ is usually negative because the value of quantity demanded will always be inverse to its price (i.e. when price gets high‚ quantity demanded
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Rising food prices Introduction: Food prices have been on the rise and have become a global issue. Prices have soared over the past year and a half and threaten to go up further if issues are not addressed immediately. Below is a look at how prices have been over the past year. Figure 1. FAO Food Price Index: February 2007 - January 2008 Source FAO‚ 2008 In this project‚ we attempt to find out the causes for this price rise‚ the trends of the rise and the effects that this rise has had on us. Causes:
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Concept of Free Time Time is life‚ and if you waste of your time ‚ it means you waste of your life. Some of free time activities has positive meaning and some of them can be negative. For example; doing some sports ‚ to be healtly‚ join some culturel activities vs. “Positive “be considered or various crime ‚ such as drug addiction and violence "Negative" be considered. The high population growth rate and the excess of the young population‚ the importance of working for the assessment of free time increases
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Free college would be more like another high school. The Government may make a change that will affect a lot of people in the United States of America. That change is giving free college to every student which can either be a bad or a good thing. Although many people think it’s bad because free college would mean a raise in taxes. Secondly it is also a bad idea because the requirements at a job might get higher and be more than two years of college for most of them. Third reason free collegeis not
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The price elasticity of demand (PED) is “a measure of how much the quantity demanded of a good responds to a change in price of the good” (Mankiw 2007‚ p.90). It is a form of measure to determine how willing consumers are to move away from the good as the price of the good rises. Most of the time‚ there are factors that determines the PED‚ such as availability of close substitutes‚ necessities versus luxuries‚ definition of the market and time horizon. In order to calculate the PED‚ a formula is
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The consumer price index or CPI is a more direct measure than per capita GDP of the standard of living in a country. It is based on the overall cost of a fixed basket of goods and services bought by a typical consumer‚ relative to price of the same basket in some base year. By including a broad range of thousands of goods and services with the fixed basket‚ the CPI can obtain an accurate estimate of the cost of living. It is important to remember that the CPI is not a dollar value like GDP‚ but instead
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