VALUE Vs PRICE There are four major attributes of a commodity i.e.‚ an item or service produced for‚ and sold on the market has four major attributes. They are: • a value • a use‐value (or utility) • an exchange value • a price (it could be an actual selling price or an imputed ideal price) VALUE In simple words‚ value refers to the importance of a thing or utility of a commodity. But in economics the term “value” has a quite different meaning. According to the famous economist
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1. Compute the price elasticity of demand between these two points. Let quantity demanded = Q‚ Q1= 400 meals/day‚ and Q2= 450 meals/day Let price = P‚ P1= $20‚ and P2= $18 The change in quantity demanded = Q2-Q1 = 450-400= 50 The change in price = P2-P1= $18-$20= -2 The average in demand = (Q2+Q1)/2= (450+400)/2= 850/2=425 The average in price = (P2+P1)/2 = (18+20)/2 =38/2= 19 The percentage change in quantity demand = change in quantity demanded/the average in quantity demand =50/425 = 0.1174 =
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dream of fame and popularity‚ they are often jealous of celebrities whose pictures appear on the covers of magazines and newspapers. However they do not realize that famous people who are always in the public eye do not have easy lives. There is a price to pay for fame. First of all‚ I would like to say that when a person becomes famous‚ he or she does not have much freedom. Normally‚ a celebrity is being managed by an agent. Celebrities have to follow what the agent has arranged for them. They
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Summer2011-Microeconomics-Exam Two Practice 1. To calculate the total utility of consuming N products: A. add the additional satisfaction of consuming each product up to N and multiply by its price. B. add the total satisfactions of consuming each product up to N. C. multiply the additional satisfaction from consuming the Nth product by its price. D. multiply total satisfaction from consuming N products by N. 2. Suppose that the following table lists the utility that Steve receives from consuming oranges at 50
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Price levels of the textile products Although the production cost of textile products is normally low‚ the price of them may be cheap‚ but some may be very expensive. The price levels of the textile products in different area thus depend on what kinds of clothing are sold. So there are some differences in the price levels of the textile products sold in different area because the clothing sold are heterogeneous. Cheung Sha Wan Road The textile products sold in Cheung Sha Wan are mainly come from
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Agricultural Prices The recent announcement of Mad Cow disease ignited fears about the safety of U.S. beef‚ largely because the disease is not well understood. The fatal disease known as mad cow (bovine spongiform encephalopathy or BSE) has been found in a country’s cattle affect both supply and demand curves. Research indicates that the impact on domestic demand could be small because consumers respond differently to food safety concerns than to long-run health concerns. Research has shown that
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Price hike:- Price rise send family budgets haywire NEW DELHI: Even as India’s economy is said to boom‚ millions of its citizens are groaning under soaring prices of vegetables and food grains and | | wish the government would do something about this‚ reports from across the country say. From Chandigarh in the north‚ to Ranchi in the east and from Bhopal in central India to Kerala in the south‚ a cacophony of voices has been raised against the relentless price rise‚ with the common man
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PRICE GOUGING IMMORAL‚ IRRESPONSIBLE OR FULLY JUSTIFIED BEHAVIOUR??? By Alicja Weiss Abstract: Price gouging arises when‚ in the wake of a disaster‚ retailers roughly increase their prices for basic commodities to gain more revenue. The majority of people believe that price gouging is immoral others that it is a fully justified behaviour. The rationale of this document is to investigate a quantity of issues surrounding price gouging‚ and to argue that the widespread ethical
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|food |clothing | |2002 price |$4 |$10 | |2003 price |$6 |$20 | a. What are the percentage increases in the price of food and in the price of clothing? b. What is the percentage increase in the CPI? c. Do these price changes affect all consumers to the same extent? Explain. [ii]. Which is likely
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curve as rendering the same level of utility (satisfaction) for the consumer. A budget constraint represents all the combinations of goods and services that a consumer may purchase given current prices within his or her given income. For an individual‚ indifference curves and an assumption of constant prices and a fixed income in a two-good world will give the following diagram. The consumer can choose any point on or below the budget constraint line BC. This line is diagonal since it comes from the
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