important to be able to recognize certain elements of a demand curve. For instance‚ if Apple raised its prices by five percent‚ what would happen to its revenues? The answer to this question depends on the response of Apple consumers. Will the consumer refrain from making purchases completely or just cut back on them? How a consumer responds to price changes is known as price elasticity. The price elasticity of demand can be influenced by availability of substitutes‚ the level of necessity or luxury
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petrol has increased prices from years to years. Not only in Malaysia‚ but all the countries in the world are facing same trouble‚ petroleum prices keep increase until it become a economics burden for community. Petroleum prices $36.7 per litre in 1983. In 2005‚ it has increased to $79.9 per litre and last year‚ it also has increased to $134.1 per litre. So‚ what are the factors affecting the prices? First‚ we found out that the greatest single factor influencing petroleum prices is crude oil. So
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1) This was a 2nd entry short coming off a larger double top soon after the regular market open this morning. Notice that you could have taken the first entry off the DT‚ but because it was so close to the open‚ it was probably better to wait a few minutes and not get trapped on the wrong side of the early morning move that usually happens right after the 8:30 AM CST opening. If you took the first entry which was one tick below the arrow‚ then it was a good trade all the same and it was not wrong
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Cost and Price Analysis Instructor: Name: Class: Finance 230 Date: Period: Results: 1) Why is it important for the government to exercise good fiscal judgment when spending funds? Government employees are held responsible for use of good judgment so those excessive prices are not paid. 2) List and describe four types of market based pricing. Be sure to provide at least one (1) example of each type. Competitive Offers – response to solicitation encouraging competing offers Established
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Question 1: Consider an option on dividend-paying stock when stock price $30‚ the exercise price is $29‚ the risk-free interest rate is 5% p.a.‚ the volatility is 25%p.a. and time to maturity is 4 months. Assume that the stock is due to go ex-dividend in 1.5 months. The expected dividend is 50cents. a. b. c. what is the price of the option if it is a European call? What is the price of the option if it is a European put? Use the results in the Appendix to this chapter to determine whether there
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or seller will a. have a negligible impact on the market price. b. have little effect on market equilibrium quantity but will affect market equilibrium price. c. affect marginal revenue and average revenue but not price. d. adversely affect the profitability of more than one firm in the market. Table 14-1 Quantity Total Revenue 0 $0 1 $7 2 $14 3 $21 4 $28 2. Refer to Table 14-1. For a firm operating in a competitive market‚ the price is a. $0. b. $7. c. $14. d. $21. 3. Suppose that a firm
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Apple prices strategies. Introductory prices. This strategy means to set low prices that are used to gain entry into the market. It is usual used from startup companies and companies that want to enter in the new market. Establish a high reference price Behaviorial economist Richard Thaler has noted that consumers are really bad at making decisions about value and constantly need "reference prices" for comparison. A dress costs $80. Is that too much? Not if it’s marked down 50 percent from $160
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GDP Calculation (expenditure approach) Consumption(C): –The spending by households on goods and services‚ with the exception of purchases of new housing. •Investment (I): –The spending on capital equipment‚ inventories and structures‚ including household purchases of new housing. •Government purchases (G): –The spending on goods and services by local‚ state and federal governments. –Does notinclude transfer payments because they are not made in exchange for currently produced goods
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Consumer Price Index The Consumer Price Index (CPI) is a measure of change in prices over a period of time. The CPI is made up of a fixed basket of goods that is used to determine one’s CPI. The basket of goods consists of services and goods like food‚ education‚ transportation‚ apparel‚ housing‚ and beverages. Some examples of these goods are cereal‚ milk‚ cheese‚ prescription drugs‚ jewelry and new vehicles (“Consumer Price Index” 2010). The basket of goods are reviewed every ten years‚ which
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Price Elasticity of Demand Mark Vines 05/14/2011 DeVry University The demand for corn as an ingredient for an alternative energy source has had a profound effect on its supply as a core food ingredient. So‚ what has been the effect on the supply of corn and its substitute such as the soybean? The answer can be found by examining the five demand determinants and five supply determinants to see which ones will shift demand and supply. The demand determinants are known as T-I-P-E-N‚
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