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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Lecture 5: PRICE AND PLACE Price: - Define the pricing concept and explain different pricing methods ( cost oriented‚ competitor oriented and market oriented pricing) -Explain pricing strategies for new products( market penetration and market skimming) AND existing products. ( Understand condition and when we can use it) -Consider ethical issue in pricing ( don’t think it will be on the exam) PLACE: Define place(distripution) concept and explain the role of intermediaries in distribution
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A. If the price of natural gas‚ a resource used by manufacturers throughout the United States‚ were to double‚ the cost of production of notebooks would most likely increase as well. This would then lead to a decrease in supply (a shift to the left). Changes in Equilibrium of Notebooks Price: Increase Quantity: Decrease Determinant: (ROTTEN) Resource: cost and availability B. If the government were to provide a subsidy for notebook manufacturers‚ the cost of production would
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wage and price controls in response to exceptionally high inflation rates. However‚ Wage and price controls are government restrictions on the rate at which wages and prices may rise during a specific time period. They are most often imposed during wartime to prevent profiteering and steep rises in the price of rare consumer goods. Many nations‚ including Canada‚ instituted a system of both price controls and rationing during WWII to prevent the exploiting and steeply rising prices that might
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Question 5 – Transfer Price Division A‚ which is part of the ACF Group‚ manufactures only one type of product‚ a Bit‚ which it sells to external customers and also to division C‚ another member of the group. ACF Group’s policy is that divisions have the freedom to set transfer prices and choose their suppliers. The ACF Group uses residual income (RI) to assess divisional performance and each year it sets each division a target RI. The group’s cost of capital is 12% a year. Division A Budgeted
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completely grainy‚ gently flutter‚ creating delicate mist makeup. Add cosmetic ingredients Squalene‚ avocado oil‚ aloe Jila Suo‚ makeup skin supple‚ obedient easy makeup. Price : RM 90 Quick-drying nail polish red spike Specifications: 12ml Features: short quick drying nail polish dry without journeying etc. price: RM 25 Avon Skin-friendly Skin Whitening BB Cream Specifications: 30g Features: The new "sensitive factor" - instantly brightens skin tone‚ flawless touch
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Price controls are usually justified as a way to help consumers‚ but those who advocate them often ignore their incentive effects. Consider‚ for example‚ rent controls‚ a popular form of a price ceiling. If the demand curve and the short-run supply curves are inelastic‚ then a sizable drop in rents may result in a very small shortage. The benefits to consumers (lower prices) will‚ in the judgment of most‚ clearly outweigh the costs to consumers (less housing). Further‚ the short-run supply of housing
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Theme of Bride Price The Bride Price‚ a story written by Buchi Emecheta‚ reflects a misery life of a Nigerian girl‚ Aku-nna. The absent of her father in the family had dramatically changed her life. Her bride price that she would get before getting married caused many troubles within her family. After reading this story‚ we can see the practice of customs‚ the system of value and the belief of local Nigerians are the main themes discussed in the story. First of all‚ it ’s about practice of customs
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you be certain that your expectations would be met? 2. If most investors expect the same cash flows from Companies A and B but are more confident that Company A’s cash flow will be close to their expected value‚ which should have the higher stock price? Explain. 3. When is a stock said to be in equilibrium? At any given time‚ would you guess that most stocks are in equilibrium as you defined it? Explain. 4. Suppose three completely honest individuals gave you their estimates of Stock X’s intrinsic
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How Oil Prices Affect the Price of Food By Post Carbon | Wed‚ 21 December 2011 18:07 The current global food system is highly fuel- and transport-dependent. Fuels will almost certainly become less affordable in the near and medium term‚ making the current‚ highly fuel-dependent agricultural production system less secure and food less affordable. It is therefore necessary to promote food self-sufficiency and reduce the need for fuel inputs to the food system at all levels. The connection between
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