12.1 Suppose your elasticity of demand for your parking lot spaces is -2‚ and price is $8 per day. If your MC is zero‚ and your capacity is 80% full at 9 A.M. over the last month‚ are you optimizing? We are clearly not optimizing because we are only optimized when marginal revenue equals marginal cost. Because our costs are sunk we should lower our prices so that we can fill to capacity. 14.4 A manufacturer of microwaves has discovered that male shoppers have little value for microwaves and
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gasoline prices for the resent several years. The prices for gasoline had been changed rapidly. Mostly increasing‚ while the demand for it did not. For example‚ gasoline prices by Feb. 2008 rose to an average of $3.13 a gallon‚ that is up to 40% from $2.24 in Jan 2007. ( with the price elasticity 1%/40% = 0‚025)‚ and up to 62% from 2003. (with the price elasticity 1%/62% = 0‚016). Yet‚ demand continued to grow at an average 1.15% a year by 2006. Someone could ask why the rise of price did not
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Aggregate supply Aggregate supply curve showing the three ranges: Keynesian‚ Intermediate‚ and Classical. In economics‚ aggregate supply is the total supply of goods and services that firms in a national economy plan on selling during a specific time period. It is the total amount of goods and services that firms are willing to sell at a given price level in an economy. Analysis There are two main reasons why Qs might rise as P rises‚ i.e.‚ why the AS curve is upward sloping: Aggregate
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wholesale prices are to be determined in order to achieve channel coordination and a win-win outcome. We find that the wholesale prices are set to be lower than the retail prices and the optimal revenue sharing ratio is linearly increasing in the wholesale prices. The proposed revenue sharing contract has more flexibility than price protection‚ in that the optimal revenue sharing ratio can be settled reasonably through negotiation between the retailer and wholesaler. Key words: Supply Chain Management
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2 p ‚ what price will maximize revenue? Question # 04: Suppose that the demand curve for a good is given by D( p) = 100 maximize revenue? p . What price will Question # 05: If consumer 1 has the demand function D1( p ) = 1000 − 2 p and consumer 2 has the demand function D 2( p ) = 500 − p ; then what will be the aggregate demand function for an economy? Question # 06: If the demand curve is a linear function of price ( D ( p ) = a − bp )‚ then what will be the price elasticity of demand at
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OWOYOMI OLUWATOSIN ADEDAPO 1/16/2013 | ECONOMICS AND STATISTICS | AN ESSAY OF THE EVALUATION OF FACTOR PRICE EQUALIZATION THEORY. | MAT NO: SSC0905121 | INTRODUCTION Factor price equalization is an economic theory‚ by Paul A. Samuelson (1948)‚ which states that the prices of identical factors of production‚ such as the wage rate‚ or the return to capital‚ will be equalized across countries as a result of international trade in commodities. The theorem assumes that there are two goods
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Supply Chain Management Chapter 15 Pricing and Revenue Management in the Supply Chain Lecturer: Wilmer Jorge © 2007 Pearson Education 15-1 Outline The Role of Revenue Management in the Supply Chain Revenue Management for Multiple Customer Segments Revenue Management for Perishable Assets Revenue Management for Seasonable Demand Revenue Management for Bulk and Spot Customers Using Revenue Management in Practice Summary of Learning Objectives © 2007 Pearson Education 15-2 The Role
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Concept: Law of Supply Law of supply stated that the quantity supplied of a good rises when the price of the good rises while other things equal. This shows that the quantity supplied is positively related to the price of the good. The supply curve is used to relate price of a good and the quantity supplied and the curve is upward sloping. The supply curve shows how much producers of the good offer for sale at any given price‚ holding constant all the other factors beyond price that influence
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a partivular price at a particular time. The law of demand states that at a high price people will demand less and at a low price people will demand more. Demand is therefore a set of relationships between price and quantity. Representing demand: Demand can be represented by means of a demand table or demand curve(graph). The demand curve usually has a negative gradient which slopes downwards from left to right. The demand table shows an inverse relationship between price and quantity.
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Tutorial Three chapter 5 & 7 1. Why is an understanding of tourism supply fundamental to the analysis of how the tourism sector is organized and operates? Supply is the result of productive activities and exists to meet the tourism demand. Supply can be classified into three categories: a) Descriptions of industry‚ its operations‚ management and marketing. b) The Spatial (geographic development) and interactions which characterise the industry on a local‚ national and international
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