Question 1 a) S2 S2 S1 S1 Q1 Q2 (unit) Q1 Q2 (unit) In this case a computer chip needed to produce a computer‚ as both are complementary goods. in which ‚ complementary is goods that can complement the function of the other goods. To produce more computers to be able to offer to the public‚ computer chips have to be increased. This happens because they are complements that if prices rise‚ the computer chip would automatically affect the price of the computer. Assuming that
Premium Supply and demand Computer
Economics 202 Fall 2013 Exam 1 1. A resource is something that a. is used to produce goods and services b. is provided by nature‚ not made by society c. exists in unlimited quantities d. must be produced by a firm 2. Michigan has an abundant supply of fresh water. However‚ an economist 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
Premium Supply and demand
Determinants of Supply and Demand If the demand for corn increases due to its use as an alternative energy source‚ soybean would become useless‚ more so the price for corn would increase because it may be limited since it would be its only demand. Like the old saying demand goes up‚ so does price. As price goes up‚ demand goes down‚ forcing equilibrium. If there is a decrease in soybean supply due to less farmland for soybean production‚ everything is based on a give and take‚ so someone has
Premium Supply and demand Energy development
1.0 INTRODUCTION Nescafe is one of the beverages product produced by Nestle Company. It is a brand of coffee that suits to everyone who loves coffee so much. It comes in the form of many different products such as Nescafe Original‚ Nescafe Classic and Nescafe Gold that totally will give different tastes and experiences to its consumers. It is consumed by people staying in urban‚ semi urban and rural areas. As the Nestle is a well established company in producing many products not just Nescafe
Premium Supply and demand Coffee Coffea arabica
Demand for Medical Care The demand for medical care is derived from our demand for good health. Michael Grossman was the first to do econometric research on this topic. "Grossman ’s work established two approaches for consideration. In the first‚ medical care is viewed as an input in the production function for health‚ and in the second‚ as an output produced by medical care providers (Henderson‚ p.142)." There are two main factors that determine the demand for medical care. The first is the
Premium Medicine Health care Health
businessman would always raise prices when facing an inelastic demand curve‚ but might or might not raise prices when facing an elastic demand curve? Explain and justify your answers in detail. Price elasticity of demand is defined as percentage change in quantity demanded divided by the percentage change in price. If the demand is elastic‚ consumer response is large relative to the change in price (e.g.‚ new car‚ airline travel). If demand is inelastic‚ consumers aren’t very responsive to price changes
Premium Supply and demand Price elasticity of demand Elasticity
law of demand and using examples and diagrams distinguish between movements along and shifts of the Demand curve. Demand is the amount of a particular good or service that a consumer is willing and able to buy at a given price ceteris paribus. The law of demand states that as the prices of a good or service increases the quantity demanded will decrease and vice versa‚ all other things being equal. The difference between movements along the demand curve and a shift of the demand curve is based
Premium Supply and demand Price point Meaning of life
increase of 10% in income. Then the income elasticity of demand would be‚ Ey= (20%)/(10%)=2 The amount which the quantity demanded for a good change in response to a change in income depends on the type of goods. We can distinguish the types of goods as following‚ Normal goods - Ey > 0 – positive YED Luxury goods - Ey > 1 Necessities - 0 < Ey < 1 Inferior products - Ey < 0 – negative YED Let’s see how the income elasticity of demand deviates for normal goods and inferior products‚ Normal Goods
Premium Costs Cost Investment
ECO365 Supply and Demand Simulation Student Name ECO/365 – Principles of Microeconomics Instructor Name Date Introduction Supply and Demand is a phrase that every one hears in one way or another‚ Supply and demand phrase according to Colander‚ (2010) is the most used phrase by economist and the reason is because the phrase provides a good “off-the-cuff” answer for many question that have to do with economy. Example why are interest rates to Low? Because supply and demand. Why is Gasoline so
Premium Supply and demand
Supply and Demand Simulation ECO/365 July 27‚ 2013 * In this case there were many examples of microeconomics‚ primarily the demand for two bedroom apartments and condominiums. The impacts and decisions that Goodlife made in response to the people’s demand is an example of microeconomics. Micro looks specifically on how a company can increase their profit to remain competitive in the market. The changes in supply and demand when another company came into Atlantis and when the government
Premium Economics Macroeconomics Keynesian economics