Critique the proposal that Van Leer has prepared for Total. If Total declines the offer‚ should Van Leer hold firm on the price or counter with a reduction in the pric?e First of all‚ the proposal has identified everything that TOTAL was seeking to obtain. These were (1) the best prices at each location based on the overall purchasing volume for the group‚ (2) all quoted prices would be firm for one year‚ with a multi-year proposal including the escalation on cost of raw materials starting at the
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definition of elasticity is what happens to consumer demand for a good when prices increase. As the price of a good rises‚ consumers will usually demand a lower quantity of that good‚ perhaps by consuming less‚ substituting other goods‚ and so on and the demand of complementary product will also be less. The greater the extent to which demand falls as price rises‚ the greater the price elasticity of demand. Conversely‚ as the price of a good falls‚ consumers will usually demand a greater quantity of that
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oppose controls on prices. The reason most economists are usually oppose about price controls is that they distort the allocation of resources. Price ceilings‚ which prevent prices from exceeding a certain maximum‚ cause shortages. Price floors‚ which prohibit prices below a certain minimum‚ cause surpluses‚ at least for a time. For example‚ let’s say that the supply and demand for milk and eggs are balanced at the current price‚ and that the government then fixes a lower maximum price. The supply
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Managerial Economics Assignment Submitted to Professor Amit Sharma 1. When the price of corn was "low‚" consumers in the United States spent a total of $8 billion annually on its consumption. When the price halved‚ consumer expenditures actually DECREASED to $6 billion annually. This indicates that: A. The demand for corn is elastic. B. The demand curve for corn is upward sloping. C. Corn is a Giffen good. D. The demand for corn is inelastic. Solution: C. Corn is a Giffen good
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that sustainable business success and shareholder value cannot be achieved solely through maximizing short term profits‚ but through market oriented yet socially responsible activities of the business. Therefore‚ the social responsibility and non price competition tools practices has become an important part of today’s business agenda‚ which indicate the commitment of the business to behave ethically and contribution towards improving the quality of work and social life of the workforce and their
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Price elasticity of demand (PED) is defined as the responsiveness of the quantity demanded of a good or service to a change in its price. Price Elasticity of Demand Percentage Change in Quantity Demand for product A Percentage Change in Price for Product A So‚ Percentage Change in Quantity Demand for Product A = PED X Percentage Change in Price for Product A Given‚ PED of Books= 2‚ Percentage Change in Price for Books = 10% So‚ Percentage Change in Demand for Books = 2 X 10% = 20%
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describe the rising of chaos. Joan Didion uses words like “revolution” and “missing” to describe the chaos that is sweeping across the United States of America. Yeats and Didion use diction to symbolize the pandemonium in their stories. In “The Second Coming” WB Yeats uses diction to indicate the rising portentous by using “Surely some revelation is at hand.” Joan Didion writes “Those left behind filed desultory missing-persons reports‚ and then moved on themselves” diction to denote the rising confusion
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Economics HL- IB Price elasticity and indirect taxes Q. Using at least one diagram‚ explain why knowledge of price elasticity of demand is necessary for a government when they are considering increasing indirect taxes on certain products. (16th May 2011‚ Economics- Paper 2(HL)‚ Time Zone 2) The government needs to understand price elasticity of demand when setting the price of the commodities and services it provides for the community (like public transport price). It also needs to be able
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Podmolik‚ Mary Ellen. ‘Area’s median home price up 1.7%: Number of homes sold rises 22% from year earlier’‚ Chicago Tribune‚ 20 July 2012. The price elasticity of demand in Chicago real estate market The newsletter reported the important data of Chicago real estate market in June 2012. Generally speaking‚ this market was experiencing great ascending trends during the short term before the data was released. The specific data is summarized in the following graphics. The market of Chicago real
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the material price variance and usage variances for the month. 2. Calculate the labor rate and efficiency variances for the month. 3. How would your answers to Questions 1 and 2 change if you had been told that November’s planned production activity was 4‚000 units of A and 4‚000 units of B? 4. How would your answers to question 1 and 2 change if you had been told that November’s sales were 4‚000 units of A and 3‚500 units of B? SOLUTIONS: 1. (a.) MATERIAL PRICE AND (b.) USAGE
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