4 points The Saturn Corporation (once a division of GM) was permanently closed in 2009. What went wrong with Saturn? Answer Selected Answer: Saturn sold cars below the prices of Honda or Toyota‚ earning a low 3% rate of return. Correct Answer: Saturn sold cars below the prices of Honda or Toyota‚ earning a low 3% rate of return. Question 3 4 out of 4 points Economic profit is defined as the difference between revenue and ____. Answer Selected
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• • Producer Surplus The Total-Revenue Test Consumer Surplus Consumer and Producer Surplus • Elasticity‚ Consumer Surplus‚ and Producer Surplus Show More 1 . Revenue increases when • • • • A. producer surplus increases B. producer surplus decreases C. consumer surplus increases D. consumer surplus decreases Correct : Producer surplus is the difference between the minimum price the producer is willing to receive and what they actually receive. The surplus is their profit‚ and the
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* Would the introduction of maximum prices by a government solve the problem of scarcity: Scarcity results from scarce resources and unlimited wants. An effective maximum price would be set below the market equilibrium. Unless the government took additional measures it would result in excess demand and a smaller quantity sold at a lower price. While some would benefit from lower prices others would now go without the good. Overall the action would not reduce the level of scarcity. * Discuss
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but they also depend crucially on the elasticity of demand for these goods. In particular‚ when demand is inelastic‚ it does not pay to enforce any prohibition unless the social value is negative and not merely less than the private value. We also compare outputs and prices when a good is legal and taxed with outputs and prices when the good is illegal. We show that a monetary tax on a legal good could cause a greater reduction in output and increase in price than would optimal enforcement‚ even
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____ 1. Refer to Figure 6-3. In panel (b)‚ with the price floor in effect‚ there will be a. a shortage of wheat. b. equilibrium in the market. c. a surplus of wheat. d. an excess demand for wheat. 2. The positive relationship between price and quantity supplied is called a. profit. b. a change in supply. c. a shift of the supply curve. d. the law of supply. 3. When quantity demanded decreases at every possible price‚ we know that the demand curve has a. shifted to the left. b. shifted to the right
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2016 September Managing During Recession Source: http://www.amul.com/products/amul-tablebutter-info.php Table of Contents 1. Introduction 2. Thesis 3. Elasticity Price and Income Elasticity Cross Price Elasticity 4. Cost of Production 5. Market Structure 6. Market Segment 7. Demand in Kuwait and U.A.E 8. Foreign Exchange 9. Conclusion 10. Bibliography Introduction One of the leading food brand industry in India is Amul (Kaur‚2014).Amul butter helped in
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Ammunition The consumption pattern of ammunition in the United States has been on an upward trend beginning in 2008. By analyzing these articles it is apparent that there is a demand that supply cannot keep up with. The American people feel entitled to own ammunition and firearms for protection and personal reasons. Demand for ammunition has risen at a rate hard to match by the supply due to many contributing factors. It is also apparent that it is Utility The utility derived from ammunition
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Producer surplus is the difference between the minimum price the producer is willing to receive and what they actually receive. The surplus is their profit‚ and the larger the surplus‚ the greater their profit on the good. When it decreases‚ the producer receives a price closer to the minimum acceptable. The consumer surplus measures what the consumer is willing to pay and that price’s difference from the market price. The closer to the market price‚ the higher the consumer surplus‚ as consumers are
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For each of the following events‚ assume that either the supply curve or the demand curve (not both shifted). Explain which curve shifted and indicate the direction of the shift. a.From 1950 to 1979 the wages paid to fruit pickers increased while the number of fruit pickers employed decreased. b.During the same period the price of radio sets declined‚ while the number of radio sets purchased increased. c.Housing prices are rising but more houses are sold. d.Australian Airlines reduces its average
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IB1 ECONOMICS: ELASTICITY ASSIGNMENT ANSWER IN THE SPACE PROVIDED 1. Calculate the price elasticity of demand (PED) for CD’s if an increase in the price of CD’s from 15 euro to 18 euro causes the quantity demand to fall from 1000 to 900 units. 2. According to your calculation above‚ do CD’s have elastic‚ inelastic or unit elastic demand? Explain your answer. 3. Explain the significance of the co-efficient of the PED calculated in question
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