elasticity of demand is the percentage change in price divided by the percentage change in quantity demanded. F 2. Demand is said to be inelastic when a reduction in price results in a decrease in total revenue. T / F 3. When the price of coffee increases 8%‚ quantity demanded decreases 5%. The elasticity of coffee must be inelastic. (PERCENTAGE OF PRICE IS GREATER THAN THE PERCENTAGE OF QUANTITY BY 1/1/2) T 4. The more substitutes there are for the product the more price elastic the demand for the
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following data. Combination Health Care All Other Goods A 0 100 B 25 90 C 50 70 D 75 40 E 100 0 a. Calculate the marginal opportunity cost of each combination. b. What is the opportunity cost of combination C? c. Suppose a second nation has the following data. Plot the PPC‚ and then determine which nation has the comparative advantage in which activity. Show whether the two nations can gain from specialization
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Microeconomics: week 4 September 22‚ 2011 Effects of Supply and Demand on the Price of Oil Each time you pull up to the pump or open your utility bill‚ you may notice the price of fuel may have changed. There are many factors that can influence fuel prices. The marketplace forces of supply and demand determine the price of fuel. If demand grows or if a disruption in supply occurs‚ there will be upward pressure on prices. By the same token‚ if demand falls or there is an oversupply of product in the
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Supply and demand simulation: Project Atlantis The supply and demand simulation was a simulation of GoodLife Management‚ a property management firm controlling all of the seven apartment complexes in the city of Atlantis. For the 9 year period in the simulation the housing market had many ups and downs because of businesses moving into the area bringing an increased amount of jobs‚ the change in consumer preferences and company expectations‚ and the policy changes induced from the government.
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It is believed that going to school is crucial for children. This brings social and mental benefits to them. However‚ children can be taught at home for certain reasons such as safety and disability. First of all‚ school can increase social awareness for kids. This is because they play with others and do some activities together. For example‚ playing football and making art posters. As a result‚ this will reflect their behaviour outside schools and learn how to deal with people. Another advantage
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assassination of the former Pakistani Prime Minister Benazir Bhutto increased oil prices because stability in Pakistan is important to US policy in the Middle East. Threats to oil workers and facilities in Nigeria have cast a long-term shadow over oil supplies from the world’s eighth largest oil exporter. Suspected militant attacks on Wednesday in Nigeria’s main oil city‚ Port Harcourt‚ heightened concern over the potential for further disruptions in shipments. "With the military and the militant warlords
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Assignment 1 - Economics The demand and supply schedules for gum are given in the table. a. Draw a graph of the gum market‚ label the axes and the curves‚ and mark in the equilibrium price and quantity. b. Suppose that the price of gum is 70¢ a pack. Describe the situation in the gum market and explain how the price adjusts. c. Suppose that the price of gum is 30¢ a pack. Describe the situation in the gum market and explain how the price adjusts. d. A fire destroys some factories that produce
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following functions at X = 3. a. Y = 4 + 3X2 b. Y = 5X + 6X3 c. Y = 6X d. Y = (6X + 3)2 / 4X 2) If a firm’s Total Cost equation is TC = 200 + 3Q + 7Q2: a. What is the equation for the firm’s marginal cost? b. What is the firm’s marginal cost when Q =1? Q= 5? 3) At the Peoria Company‚ the relationship between profit and output is as follows: ( = -40 + 20Q – 2Q2 a. What value of Q
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INTRODUCTION Nowadays‚ the demand of air travelling is increasing quickly leads to the appearance of many low cost carriers which focus on popular class. This had made huge changes in the original service and pricing strategy. Easyjet is one of the most successful low-fare airlines in the World‚ which has a noticeable measure of pricing it product. “Price” is one of the “four Ps” in marketing mix but its role is different from the other Ps: “promotion”‚ “product” and “place”. By studying about
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through customer loyalty‚ quality private goods‚ and knowing the labor market. Monopolistic competition also provides consumers with the greatest benefit of all: diversity in the world of coffee. Supply and demand analysis of Starbucks Price is a factor which affects Starbucks on both the demand and supply side. The price of coffee will determine how many individuals are willing to buy and will buy at a higher price. The company has to keep in mind the maximum price that the customer would be willing
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