Demand elasticity Supply internal external factors influence Economics for Business “Oil prices are high and constantly changing‚ but alternatives fuels are not an evident choice for motorists. Assume that oil begins to run out and that extraction becomes more expensive. Trace through the effects of this on the market for oil and the market for other fuels” This essay will examine the impacts of what diminishing oil supplies and rising extraction costs will have on both the market for fuels and
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dividend of $40 for the current year‚ what is the approximate present value of this stock‚ given at discount rate of 5% and a dividend growth rate of 3%? Answer: P = $40/(0.05 - 0.03) = $40/0.02 = $2‚000 Topic 2: Supply and Demand 1) Suppose that the demand for oranges increase. Explain the long -run effects of the guiding function of price in this scenario. Answer: In the long run‚ the higher price of oranges will signal more firms to enter the orange market‚ as it will seem
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our health‚ jeopardizes our national security‚ and threatens other basic human needs. Some impacts‚ such as record high temperatures‚ rising seas‚ and severe flooding and droughts‚ are already increasingly common (Union of Concerned Scientists‚ 2014). In order to combat air pollution‚ several alternative fuel vehicles have been invented‚ however‚ these new technologies come at a high price for consumers. Consumers that could afford such vehicles are used to conventional fuel‚ and are unwilling
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assembly operations‚ while carefully probing the capabilities of domestic suppliers. Honda has established new auto manufacturing facilities in Mexico and increased exports to Central and South America . Suppliers in the car industry have very little power. In fact quite the opposite is true they are at the mercy of the manufacturer. The importance of avoiding suppliers that fix their own terms because they are the only supplier of the produce. Honda Motors has addressed this situation in rather interesting
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None of the above. Answer: C 4) Suppose the demand for Digital Video Recorders (DVRs) is given by Q=250 - .25p + 4pc‚ where Q is the quantity of DVRs demanded (in 1000s)‚ p is the price of a DVR‚ and pc is the price of cable television. How much does demand for DVRs change if the p rises by $40? A) drops by 10‚000 DVRs B) increases by 16‚000 DVRs C) drops by 2‚500 DVRs D) increases by 4‚000 DVRs Answer: A 5) Consider the demand function Qd = 150 - 2P. The effects of other determinants
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exchange rates are determined 2. The scarcity principle implies that A. people will never be satisfied with what they have B. as wealth increases‚ making choices becomes less necessary C. the prices of scarce goods must rise due to excess demand D. choices must be made and tradeoffs will occur 3. The ’no-free-lunch’ principle is another name for the A. cost-benefit principle B. the scarcity principle C. the ceteris paribus principle D. the marginal (not average) principle
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Harrell should be able to make deductions in excess of rental income on their beach house. This deduction depends on if the 14-day personal use provision was exceeded. If the 14-day provision was exceeded than income should be limited to rental income as the ISR decided in this case. However‚ we have determined that the Harrell’s have not violated the 14-day provision and should therefore be allowed deductions for rental expenses exceeding rental income. Facts: The Harrell’s purchased a beach house
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There are three potential suppliers available to Platinum to replace the existing machinery; JabaKing‚ the existing supplier‚ who enjoys a very close strategic relationship with Platinum‚ Merakuri – a supplier out of South Korea who offers cutting edge technology‚ and Pnutype – a relatively new supplier in the market who offers preferable financing options‚ service and superior technology. In order to arrive at a decision on choice of supplier (or mix of suppliers) I have taken the approach
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Changes in Supply and Demand affecting Wal-Mart Organic products The article that I chose to discuss regarding supply and demand refers to Wal-Mart Stores Inc selling organic food in their stores. Because consumers and our health crazed society have demanded such a product‚ they have left an impact that will not only benefit themselves but Wal-Marts profits as well. By Wal-Mart supplying organic foods to their customers at the "Wal-Mart" price‚ keeps suppliers and competitors on their toes
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The laws of supply and demand are the fundamental concepts behind economics that assist in the understanding of microeconomics and macroeconomics. The simulation involves a hypothetical real estate company that must alter their prices‚ supply‚ and demand based on the different market situations of their region. GoodLife was forced to change their prices and quantity supplied based on several factors like changes in population‚ price ceiling‚ and low rental rates in neighboring towns in order to
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