1. Compute the price elasticity of demand between these two points. Let quantity demanded = Q‚ Q1= 400 meals/day‚ and Q2= 450 meals/day Let price = P‚ P1= $20‚ and P2= $18 The change in quantity demanded = Q2-Q1 = 450-400= 50 The change in price = P2-P1= $18-$20= -2 The average in demand = (Q2+Q1)/2= (450+400)/2= 850/2=425 The average in price = (P2+P1)/2 = (18+20)/2 =38/2= 19 The percentage change in quantity demand = change in quantity demanded/the average in quantity demand =50/425 = 0.1174 =
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Independence is read to crowds of patriotic Americans. Why is this document so important to the United States of America and the people in it? To answer this question‚ we must first examine why The Declaration of Independence was written in the first place. To start from the beginning‚ when England began sending people to the New World to colonize it‚ the throne took a very relaxed approach. Colonies were left to govern themselves and over
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Supply and Demand‚ Markets‚ Prices and Price Setting Cirilo "Lee" E. Montano Trident University Microeconomics ECO201 Allison Kaminaga‚ Ph.D. December 10‚ 2012 Explain what happens to price and quantity of coffee when the following events occur: 1. An advertising campaign highlights scientific studies that find drinking coffee can help reduce weight gain. a. What do you think would happen? People will buy more coffee‚ drink more coffee‚ and research what coffee will help them lose
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Price Determination under Monopoly Monopoly is that market form in which a single producer controls the whole supply of a single commodity which has no close substitute. From this definition there are two points that must be noted: (i) Single Producer: There must be only one producer who may be anindividual‚ a partnership firm or a joint stock company.Thus single firmconstitutes the industry.The distinction between firm and industry disappearsunder conditions of monopoly. (ii) No Close Substitute: The
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Macroeconomics LP4 Assignment A price ceiling is a sort of price control governments have imposed to control the price when the price is higher than it should be. Sellers try to sell more of their product because the price is high. But buyers do not want to buy at that price. Price ceilings commonly lead to shortages and are typically associated with long lines. When a new toy or video game comes out there is usually some kind of wait‚ whether in line or on a waiting list. When “tickle me
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The impact of the minimum price per unit of alcohol on the on and off trade. The Scottish Government has suggested introducing a minimum price per unit of alcohol to reduce binge drinking. The impact of this on the on and off trade will be researched. The Scottish government has introduced a minimum price per unit of alcohol of £ 0.45. www.bbc.co.uk [online] The proposal is to put the price up for really cheap alcohol‚ with that‚ less people would have access to that‚ for example a two litre-bottle
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Higher education in Ukraine Ukraine today is the most interesting country among the former Soviet Union republics where one can study‚ work and rest‚ get acquainted with the history of the country. Higher education in Ukraine has always been and still preserves high quality of education. Over 18 years of independence the country has built a well-developed‚ competitive and ramified system of national education in European educational area. More and more foreign students choose Ukraine for
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Lisa is regarded as a famous work of art for multiple reasons. There are tons of reasons why one could say that the Mona Lisa is famous but I’m going to try and break it down into the reasons why I believe it has become one of the most famous and iconic pieces of art in the world‚ One of the first reasons why I believe that the painting is famous is because of its very creator‚ Leonardo da Vinci. Leonardo was born on April 15‚ 1452‚ in Anchiano‚ Italy‚ and had passed away on May 2‚ 1519‚ in Clos Luce
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(Summary of book) Markets In Action Price Ceilings A price ceiling is a government regulation of the maximum price that may be legally charged. To see how a price ceiling works‚ we’ll examine its effects in a market for rental housing‚ when it is called a rent ceiling. A Rental Housing Market The demand for and supply of rental housing determine the equilibrium rent and the equilibrium quantity of rental housing available. A rent ceiling tries to change the rent. The effects of a rent
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Johann Gutenberg’s printing press is one of the most influential inventions ever created. Gutenberg was a goldsmith/shopkeeper who invented what is known as the printing press. He completed the printing press by the 1452‚ when he began printing 200 copies of the Bible. He then sold those Bibles at the 1455 Frankfurt book fair. He made it because he wanted money from it. He made the printing press by combining ideas from the wine press and woodcuts‚ which were popular in China. He also created a recipe
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