GE 301 Engineering economy AN INTRODUCTION ECONOMICS Definition – It is one of the social sciences‚ which consists of that body of knowledge dealing with people and their assets or resources. ECONOMICS Resource (Definition) – ● It is a material or asset that is transformed to produce benefit‚ and in the process may be consumed or made unavailable. Asset (Definition) – ● ● It is anything tangible or intangible that is capable of being owned or controlled
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Terms of trade refers to the measurement of a country’s export-prices with respect to its import prices‚ and is considered advantageous to the dual economies only in the case of it lying somewhere between the two production possibility frontiers. The measurement of terms of trade is specifically expressed through an index number by dividing the price for exports by the price for imports‚ only to ultimately multiply the answer by one hundred. This measurement helps an economy understand where it stands
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do with price elasticity‚ which is a measure used in economics to show the responsiveness of the quantity demanded of a good or service‚ in regards to the quantity demanded for a good or service to a change in its price. It will also give the percentage change in quantity demanded in response to a change in price. (wow.coursesmart.com/97812568314/page 551). A measure of the relationship between the change in quantity demanded of a particular good and a change in its price relates to prices sensitivity
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location. In monopolistic competition a firm takes the prices charged by its rivals as given and ignores the impact of its own prices of other firms. Monopolistic competition has the following Characteristics:- • There are many producers and consumers in the market and no company has total control over the market price. • There are very barriers in the entry & exit of firms. • Producers have a degree of control over prices. • There is product differentiation. •
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area but has projected a rapid growth plan over the next fifteen years. Recognizing the specialization of products that Sprouts sells‚ Centennial will need to consider utilizing one of its smaller plants that is currently inoperable to support the demand. Market Structure Taking into consideration the characteristics of a market including the quantity and strength of buyers and sellers‚ levels of competitiveness‚ product differentiation and the ability to enter and exit the market‚ the market structure
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the result of the price changing and the consumer still demanding the produce. As for inelastic‚ this is the result of the price changing although the demand decreases. The difference between elastic and inelastic are determined by the demand of the product; as for elastic the consumer will always have a demand for the product such as water‚ food‚ and gas‚ and for inelastic the consumer will change the demand based on price of the product. Producers are interested in elasticity‚ because this enables
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with high price causes decline in the value for money. It exists when the amount of money in the country is in excess of the physical volume of goods and services. Explain the reasons for this monetary phenomenon. Answer. INFLATION:- The rate at which the general level of prices for goods and services is rising‚ and‚ subsequently‚ purchasing power is falling. Central banks attempt to stop severe inflation‚ along with severe deflation‚ in an attempt to keep the excessive growth of prices to a minimum
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Set-I Q1. Price elasticity of demand depends on various factors. Explain each factor with the help of an example. Answer. Elasticity of Demand: Earlier we have discussed the law of demand and its determinants. It tells us only the direction of change in price and quantity demanded. But it does not specify how much more is purchased when price falls or how much less is bought when price rises. In order to understand the quantitative changes or rate of changes in price and demand‚ we have to
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Problem Based Learning (PBL) project for MS1381 – Part 1 ________________________________________________________________________ Instructions to Students (a) Please form groups of 2 or 3. (b) There are 2 parts to this project. This is part 1. Part 2 will be released later. (b) The PBL project constitutes 10% of your overall assessment. (c) Analyze and work out the whole problem together as a group. (d) Each group must submit 1 written group report and 1 progress report for part 1 of this project
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are smokers‚ generating revenue of 13.37 billion Euros in the year 2009. Demand and supply are then used to explain the market and the influencing factors. Demand is mainly influenced by the increased income and the availability of substitutes‚ whereas supply’s main driving force is the increased prise due to taxation and substitutes as well. Consolidation of these numbers leads to the interesting discovery that demand elasticity for tobacco in Germany seems to be indeed highly elastic. Cigarettes smuggled
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