(i) What is meant by ’cross-price elasticity of demand’? It is a measure of the responsiveness of demand for a good to a change in the price of another good. This good can either be a substitute good or complementary good. (ii) Comment on the cross-price elasticity of demand between platinum and gold. When the price of platinum rises demand for gold rises. Because gold can be a substitute for platinum people will want to buy gold more when the price of platinum increases. (b)
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Assignment Eco 101 1. a) Briefly explain the factors that determine the price elasticities of demand and supply. b) The accompanying table presents the prices and associated demand quantities of ready-made garments of Bangladesh at different world incomes. Price of RMG Quantity demanded when Quantity demanded when world GDP is $ 65 trillion world GDP is $ 70 trillion $10 500‚000 800
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would consider it a scarce resource because a. water is necessary for humans ’ physical survival b. pollution will eventually destroy all life in the Great Lakes c. water is limited relative to people ’s unlimited wants d. water commands a very high price 3. The difference between a good and a service is a. that goods help satisfy unlimited wants; services do not b. that services are available in unlimited quantities; goods are not c. that goods are available in unlimited quantities; services are
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Economics April 16‚ 2012 n Price Controls: How efficient are price ceilings and price floors? If you think one is better than the other‚ make sure to bring up examples from our economy to validate your stand. Price ceilings and price floors are essential aspects of our economy. Price ceilings are government enacted laws preventing suppliers from establishing prices of key resources higher than a certain price‚ which is set by the government. Price floors are price minimums that can be charged
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PRICE STABILITY 1’’Price stability is the economic term used to refer to a situation where the general price level covering consumer goods remain unchanged or if it does change‚ it happens at a low rate so that it is not strong enough to make any significant influence on economic decision of participants in a economy. We encounter prices in different forms in our daily life activities as buyers or sellers when we get engaged in consumption‚ investment or trade. In market economy‚ price changes
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Walking into work I smell the aromas of a nursing home. I hear the sounds of wheel chairs and walkers scraping against the hard wood surface. As I walk to station one‚ I stop by the break room to store my food. The room is full of people charting the prior shift. Walking out of the room‚ I continue to station one. Finding the cork board with the neon green paper‚ I see what hall I am working. There is only my name and one other on spring hall. I know it is going to be a rough night; but at the end
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medical condition in an emergency? How do you really know if the person is a good fit to work as a caregiver in this organization? Assistant living communities give the residents more freedom to do things verses being enclosed in one room as some nursing homes. I chose this organization because I had many relatives who were residing in assisted living facilities. Some of them were treated with respect and dignity and some were not. One family member complained to us when we would visit about the negative
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3 price discrimination With the rapid development of economy and market‚ the price discrimination phenomenon is more and more universal and the form is more and more multiple. Price discrimination refers to companies selling exactly the same or similar production to different customers at different prices. 1In November 2006‚ the major IT Web site noted‚ Lenovo in the United States launched a holiday promotion‚ and four models of ThinkPad were under undercut. TP R60 price was down from $
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versa when there is low incomes. Income elasticity is when income affects demand. This happens when income is increased in which certain goods such as inferior goods‚ the demand decreases. As for normal goods‚ the quantity demanded increases when income increases which in this case is regarded as “positive income elasticity.” Conversely‚ the quantity demanded for inferior goods decreases when income increases and this is referred to as “negative income elasticity.” Meanwhile‚ there are some normal goods
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important to our analysis of the car rental industry and Cendant’s strategy with respect to pricing: Mr. Barrows believes that the pricing strategy for Hertz is very similar to Avis and Budget. He challenged us to research whether Hertz also prices car rentals based on country of origin. Based on Mr. Barrows’ suggestion‚ we discovered different pricing for country of origin using the foreign websites of Hertz. Cendant’s pricing strategy for
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