English 1023---M02 28 October 2012 Gas Prices Today‚ gas price as a national average have risen to 2.1 dollars per gallon. This is the highest gas price increase since 1990‚ during operation desert storm. What is the cause of this drastic increase in gas prices? Limited supply of crude oil from the Middle East some say. Others think the cause is high trade tariffs on incoming foreign oil. But what is the solution to this problem? Is it drilling in our national wildlife reserves in Alaska? Dropping
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To prevent gasoline prices from having devastating effects on the economy it has been proposed that all gasoline prices in the United States be fixed at the average price for the last two years. For simplicity it will be assumed that this price is $2.50 per gallon. When equilibrium prices are under $2.50 per gallon the excess payments will be kept in a government fund. When retail prices exceed $2.50 per gallon money from this fund will be distributed to pay the difference. Do you think that this
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the ____________________. A. cross elasticity of demand is negative B. income elasticity of demand is negative C. cross elasticity of demand is positive D. income elasticity of demand is positive 3. If a 5% decrease in the price of AAA brings about a 3% increase in the sales of BBB‚ then _______________________. A. the cross elasticity of demand between AAA and BBB is positive B. AAA and BBB are complementary goods C. the price elasticity of demand for both AAA and BBB is inelastic
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response to an 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
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An often debate is whether increasing the price of petrol is an appropriate way to decline traffic and contamination problems. It is undeniable that traffic as well as traffic’s emissions will not work normally if the price of petrol rises. In this case‚ I would contend that the growth of the price of petrol will solve traffic and pollution problems effectively. To begin with‚ I will show some reasons that the price of petrol can control growing traffic completely. Firstly‚ it is obvious that transport
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CHAPTER 20 Supply and Demand: Elasticities and Government-set Prices A. Short-Answer‚ Essays‚ and Problems New 1. The president of a toy company asks you for advice about whether the company should cut the price of its best-selling doll this year based on the following information: last year the company cut the price of its best-selling doll by 10% and the total revenues from doll sales increased by 10%. New 2. The owner of a health club asks you for advice about whether the company
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Price setting is a key strategy decision. Pricing decisions affects the number of sales and amount of money a company makes. There are many ways to set prices‚ the simplest approaches are demand-oriented and cost-oriented price setting. Demand-oriented price setting approaches consist of Marginal analysis‚ price sensitivity‚ value in use pricing‚ and reference prices. Cost-oriented setting approaches consist of markups‚ Average-cost pricing‚ types of cost‚ and break-even analysis. Some price objectives
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India is facing many serious problems nowadays‚ but the problem of price-rise is the most serious one. It is very common these days. The prices of essential commodities are going higher day by day. India is passing through a very hard time nowadays. The problem of prise-rise has become very serious. The government is unable to control the prices of necessary goods. The rise in prices is natural in a developing county like India. But when it goes out of control‚ it causes great difficulties for
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Corrupted Corn Grocery stores are guilty. They have stooped to prioritizing speed and quantity over quality. In The Omnivore’s Dilemma Pollan aggressively attacked to reveal the evilness the food industry has been striving to hide. His vexation is clearly shown in his thesis "But forgetting‚ or not knowing in the first place‚ is what the industrial food chain is all about‚ the principal reason it is so opaque‚ for if we could see what lies on the far side of the increasingly high walls of our industrial
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9/1/13 India: Teak log prices firm at local auctions the timber network Help Contact English Search ALL FORDAQ Marketplace Home > Market Info Directory Market Info Our Services Not a member yet? Join Fordaq Log in News Search India: Teak log prices firm at local auctions June 22‚ 2011 • Source: ITTO’s Tropical Timber Market Report • View s: 10761 Advanced search Archive Auction sales at Government Forest Depots in Gujarat and Central India are
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