CFA® Level I – Economics Demand and Supply Analysis: Introduction www.irfanullah.co 1 Contents 1. Introduction 2. Types of Markets 3. Basic Principles and Concepts 4. Demand Elasticities www.irfanullah.co 2 1. Introduction • Economics is the study of production‚ distribution‚ and consumption; it is divided into two broad areas: Microeconomics and Macroeconomics • Macroeconomics deals with aggregate economic quantities‚ such as national output and national income • Microeconomics deals with
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Principles of Macroeconomics‚ 9e - TB1 (Case/Fair/Oster) Chapter 3 Demand‚ Supply‚ and Market Equilibrium 3.1 Firms and Households: The Basic Decision Making Units 1 Multiple Choice 1) Michael Dell was the first individual who sold computers by mail order. The company founded by Dell is now one of the largest and most successful computer companies in the United States. Michael Dell would be classified as a(n) A) entrepreneur. B) opportunist. C) monopolist
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Supply and Demand Simulation ECO/365 November 27‚ 2012 William Mason Supply and Demand Simulation This supply and demand simulation teaches how to respond to changes due to the shifts in the market. Whenever there is a change that means several factors that need to be looked at. A number of factors‚ including price increases or decreases‚ cause changes in supply and demand. If demand rises‚ the supplier should increase supply to achieve larger profits from increased sales at higher prices
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elasticity of demand is the percentage change in price divided by the percentage change in quantity demanded. F 2. Demand is said to be inelastic when a reduction in price results in a decrease in total revenue. T / F 3. When the price of coffee increases 8%‚ quantity demanded decreases 5%. The elasticity of coffee must be inelastic. (PERCENTAGE OF PRICE IS GREATER THAN THE PERCENTAGE OF QUANTITY BY 1/1/2) T 4. The more substitutes there are for the product the more price elastic the demand for the
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Next Month Article Publication Date: Monday‚ 15 December 2008 Source: Khaleej Times Economic Concept(S): Law of Demand and Supply and Price Ceilings. The article discusses how the costs of various commodities are going to be reduced at the start of the New Year. This is going to increase the quantity demanded of these commodities‚ according to the Law of Demand. . The Law of Demand states that an increase in price level‚ will lead to a decrease in the quantity demanded‚ ceteris paribus. At the
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Supply & Demand Simulation Erica Bradford ECO/365 June 19‚ 2013 Jeremy Alessandro Supply & Demand Simulation Goodlife Management is the sole provider of apartments available for rent in the city of Atlantis in which the supply and demand simulation provided by UPOX takes place. The simulation provides excellent‚ real-life examples of how the supply and demand curves may shift based upon various factors that occur within the market in Atlantis. The following details such examples as
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Aggregate Demand and Supply Models Team C Ellen Campbell‚ April 6‚ 2013 Stephen Martin University of Phoenix Introduction Leaning team C is a group of International reporters. The team has the task of describing and critiquing the current state of the U.S. economy. The current state of the following economic factors is: unemployment‚ expectations‚ consumer income‚ and interest rates. Team C will identify the existing effect of the economic factors on aggregate demand and supply. Team will
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Aggregate Supply and Demand Models ECO/372 November 24‚ 2014 Aggregate Supply and Demand Models Current state of Interest Rates and their effect on the U.S. economy Since the financial collapse of 2007 the United States Federal Reserve has maintained a system of policy accommodation consisting of lowering short-term interest rates to near zero levels‚ and buying large quantities of longer-term Treasury securities in order to encourage new spending and maintain the current prices of assets. Because
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Factors of Supply And Demand Chad M. Lass Rasmussen College Author Note This essay is being submitted on April 13‚ 2012‚ for Tim Nebosis’ B136/GEB1011 Section 27 Introduction to Business class. Factors of Supply And Demand The fast food chain that I chose to examine is White Castle. They are relatively new to the St. Cloud area and I think that some of the supply and demand factors that I am going to discuss may have already affected their sales. Two supply factors that would make an
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Which is not characteristic of a product with relatively inelastic demand? A) The good is regarded by consumers as a necessity. B) There are a large number of good substitutes for the good. C) Buyers spend a small percentage of their total income on the product. D) Consumers have had only a short time period to adjust to changes in price. Answer: B 2. The demand for Cheerios cereal is more price-elastic than the demand for cereals as a whole. This is best explained by the fact that:
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