287KB - NZQA
... instead of ‘affordable’, ‘related good’ rather than ‘complement/substitute’) made specific reference to data (e.g. an increase in price of cherries from $10 to $20, quantity supplied decreased from 110,000kg to 125,000kg per month) made specific reference to the graph (e.g. shift from S1 to S2) show ...
... instead of ‘affordable’, ‘related good’ rather than ‘complement/substitute’) made specific reference to data (e.g. an increase in price of cherries from $10 to $20, quantity supplied decreased from 110,000kg to 125,000kg per month) made specific reference to the graph (e.g. shift from S1 to S2) show ...
Chapter 5
... just grow more oranges (that takes years) inelastic Example 2 Hair Cuts – salon can stay open later or hire more people elastic ...
... just grow more oranges (that takes years) inelastic Example 2 Hair Cuts – salon can stay open later or hire more people elastic ...
Behavior of Firms
... Each firm begins from a long run equilibrium position where profits are zero. Suppose market demand rises in the short run, price will __________ and each firm will ____________ its output. each firm will now earn ________ profits. the __________ profits will attract ______________ firms a ...
... Each firm begins from a long run equilibrium position where profits are zero. Suppose market demand rises in the short run, price will __________ and each firm will ____________ its output. each firm will now earn ________ profits. the __________ profits will attract ______________ firms a ...
Elasticity
... Determinants of Elasticity: 1. Availability of Substitutes. A demand curve for a good becomes relatively more elastic as the number of substitutes for the good increases. For example, there were few substitutes for White-Out when it was first introduced so its demand curve was steep or relatively in ...
... Determinants of Elasticity: 1. Availability of Substitutes. A demand curve for a good becomes relatively more elastic as the number of substitutes for the good increases. For example, there were few substitutes for White-Out when it was first introduced so its demand curve was steep or relatively in ...
Chapter 4 Section 3 What is Elasticity of Demand?
... Proportion of income: big purchases mean more elastic Luxury vs. necessity: necessity is more inelastic, luxury is more elastic. Addictive substances considered “necessity” in this context. Timeframe: the quicker you need it, the more inelastic it is ...
... Proportion of income: big purchases mean more elastic Luxury vs. necessity: necessity is more inelastic, luxury is more elastic. Addictive substances considered “necessity” in this context. Timeframe: the quicker you need it, the more inelastic it is ...
the market forces of supply and demand
... All goods exactly the same Buyers & sellers so numerous that no one can affect market price – each is a “price taker” ...
... All goods exactly the same Buyers & sellers so numerous that no one can affect market price – each is a “price taker” ...
1 Economics 101 Fall 2012 Homework #3 Due Tuesday, November
... 5) When the price of FIM-92, Py, decreases from $3000 to $1500, the demand for ATGM, Qx, also decreases from 6000 to 5000. What is the cross-price elasticity of demand equal to given this information? Are ATGM and FIM-92 substitutes or complements? Use the standard formula for percentage changes to ...
... 5) When the price of FIM-92, Py, decreases from $3000 to $1500, the demand for ATGM, Qx, also decreases from 6000 to 5000. What is the cross-price elasticity of demand equal to given this information? Are ATGM and FIM-92 substitutes or complements? Use the standard formula for percentage changes to ...
Ch 12: Perfect Competition
... Ch. 12: Perfect Competition. Selection of price and output Shut down decision in short run. Entry and exit behavior. Predicting the effects of a change in demand, technological advance, or change in cost. Efficiency of perfect competition ...
... Ch. 12: Perfect Competition. Selection of price and output Shut down decision in short run. Entry and exit behavior. Predicting the effects of a change in demand, technological advance, or change in cost. Efficiency of perfect competition ...
27 – Oligopoly and Strategic Behavior
... Increasing Entry Costs: Any strategy undertaken by firms in an industry with the intent or effect of raising the cost of entry into the industry by a new firm. To sustain a long price war, existing firms might invest in excess capacity so that they may expand output during the price war, thus signal ...
... Increasing Entry Costs: Any strategy undertaken by firms in an industry with the intent or effect of raising the cost of entry into the industry by a new firm. To sustain a long price war, existing firms might invest in excess capacity so that they may expand output during the price war, thus signal ...
ECON101 2015-16 Fall Midterm Answer Key
... If the price falls to 8 TL per pair of shoes, the new consumer surplus becomes the area of X+Y+Z: (308)*120/2 = 1,320 TL. In other words, the additional consumer surplus (Y+Z) is equal to 320 TL. ...
... If the price falls to 8 TL per pair of shoes, the new consumer surplus becomes the area of X+Y+Z: (308)*120/2 = 1,320 TL. In other words, the additional consumer surplus (Y+Z) is equal to 320 TL. ...
Supply and Demand
... 2.2 Supply • The quantity of a good or service that firms supply depends on price and other factors such as the cost of inputs that firms use to produce the good or service. • The supply function describes the mathematical relationship between quantity supplied (Qs), price (p) and other factors tha ...
... 2.2 Supply • The quantity of a good or service that firms supply depends on price and other factors such as the cost of inputs that firms use to produce the good or service. • The supply function describes the mathematical relationship between quantity supplied (Qs), price (p) and other factors tha ...
1. An enterprise sells 1000 units of output at a price of 300 euros per
... 3. Suppose now that the firm is constrained by an authority to behave as in perfect competition. a- Which would be the price? b- Which would be the evolution of margin rate? 4. A firm undertook a market analysis in places A and B. She estimated the price-elasticities of the demands at -2 and -5 on t ...
... 3. Suppose now that the firm is constrained by an authority to behave as in perfect competition. a- Which would be the price? b- Which would be the evolution of margin rate? 4. A firm undertook a market analysis in places A and B. She estimated the price-elasticities of the demands at -2 and -5 on t ...
September Test – 2015 Economics M.M – 100 Time – 3 hr General
... (i) If a poor man can afford now the purchase of low quality of wheat instead of the coarse grains which he was using previously, use of low quality food grains/wheat will be a normal good for the poor man but inferior good for a rich man. (ii) Even a car can also be an inferior good for example whe ...
... (i) If a poor man can afford now the purchase of low quality of wheat instead of the coarse grains which he was using previously, use of low quality food grains/wheat will be a normal good for the poor man but inferior good for a rich man. (ii) Even a car can also be an inferior good for example whe ...
OLIGOPOLY
... 2. The result is that the firms do not have stable demand curves. If Pepsi changes its price, Coka Cola’s demand curve shifts. 3. As a result the method of finding the profit maximising output by comparing the firm’s costs to the firm’s demand curve is complicated or unworkable. Pepsi can decide on ...
... 2. The result is that the firms do not have stable demand curves. If Pepsi changes its price, Coka Cola’s demand curve shifts. 3. As a result the method of finding the profit maximising output by comparing the firm’s costs to the firm’s demand curve is complicated or unworkable. Pepsi can decide on ...
Supply and Demand Questions
... 5. In Singapore, patients have to pay their entire medical bill with their own money from their medical savings account. In the market for health care services this causes a. The demand to increase c. The supply to decrease b. The demand to decrease d. The quantity supplied to decrease 6. In the mar ...
... 5. In Singapore, patients have to pay their entire medical bill with their own money from their medical savings account. In the market for health care services this causes a. The demand to increase c. The supply to decrease b. The demand to decrease d. The quantity supplied to decrease 6. In the mar ...
Answer Key
... 2. The restaurant market is not considered to be perfectly competitive since there are many differences between restaurants including location, service, quality of food, and so on. This is evidenced by the fact that people do show preferences over which restaurants they attend. Therefore, it is an e ...
... 2. The restaurant market is not considered to be perfectly competitive since there are many differences between restaurants including location, service, quality of food, and so on. This is evidenced by the fact that people do show preferences over which restaurants they attend. Therefore, it is an e ...
CONSUMER.PPT
... consumption resulting from a change in the price of one good relative to the price of other goods. • Income effect: The change in consumption resulting from an increase in a consumer’s real income. • Real income: Consumer’s income measured in terms of the goods it can buy. ...
... consumption resulting from a change in the price of one good relative to the price of other goods. • Income effect: The change in consumption resulting from an increase in a consumer’s real income. • Real income: Consumer’s income measured in terms of the goods it can buy. ...
Supply and demand
In microeconomics, supply and demand is an economic model of price determination in a market. It concludes that in a competitive market, the unit price for a particular good, or other traded item such as labor or liquid financial assets, will vary until it settles at a point where the quantity demanded (at the current price) will equal the quantity supplied (at the current price), resulting in an economic equilibrium for price and quantity transacted.The four basic laws of supply and demand are: If demand increases (demand curve shifts to the right) and supply remains unchanged, a shortage occurs, leading to a higher equilibrium price. If demand decreases (demand curve shifts to the left) and supply remains unchanged, a surplus occurs, leading to a lower equilibrium price. If demand remains unchanged and supply increases (supply curve shifts to the right), a surplus occurs, leading to a lower equilibrium price. If demand remains unchanged and supply decreases (supply curve shifts to the left), a shortage occurs, leading to a higher equilibrium price.↑