Chapter 4:3: DEFINING DEMAND:
|
|
- Bryan Austin
- 6 years ago
- Views:
Transcription
1 Chapter 4:3: DEFINING DEMAND:
2 Objectives: Analyze the concepts of the law of demand. Explain how the substitution effect and income effect affect decisions.
3 Gen_32:26 And he said, Let me go, for the day breaketh. And he said, I will not let thee go, except thou bless me.
4 Elasticity of Demand Economists describes the way that consumers respond to price changes as elasticity of demand. Elasticity of demand measures how drastically buyers will cut back or increase their demand for a good when the price rises or falls, respectively. If you buy the same amount or just a little less of a good after a large price increase, your demand is inelastic, or relatively unresponsive to price changes.
5 Elasticity of Demand If you buy less of a good after a small price increase, your demand is elastic. A consumer with highly elastic demand for a good is very responsible to price changes.
6 Calculating Elasticity In order to calculate elasticity of demand, take the percentage of change in the quantity of the good demanded and divide this number by the percentage change in the price of the good. The result is the elasticity of demand for the good.
7 Calculating Elasticity The law of demand implies that the result will always be negative. That is because an increase in the price of a good will always decrease the quantity demanded, and a decrease in the price of a good will always increase the quantity demanded.
8 Price Range The elasticity for demand for a good varies at every price level. Demand for a good can be highly elastic at one price and inelastic at a different price.
9 Values of Elasticity. We have been using the terms inelastic and elastic to describe consumers responses to price changes. These terms have precise mathematical definitions. If the elasticity of demand for a good at a certain price is less than 1, we describe demand as inelastic. If the elasticity is greater than one demand is elastic. If elasticity is exactly equal to 1, we describe as unitary elastic. Equation page
10 Factors Affecting Elasticity: Why is the demand for some goods so much less elastic than for other goods? Rephrase the question and ask yourself, What is essential to me? What goods must I have, even if the price rises greatly? The goods you list might have some traits that set them apart from other goods and make our demand for those goods less elastic. Several different factors can affect a person s elasticity of demand for a specific good.
11 Factors Affecting Elasticity: AVAILABILITY of SUBSTITUTES: If there are few substitutes for a good, then even when its price rises greatly, you might still buy it. You believe you have no good alternatives.
12 Factors Affecting Elasticity: HYPOTHETICAL: if your favorite musical group plans to give a concert, that you want to attend, there really is no substitute for that ticket. You would go to a concert to hear some other band, but that would not be as good. You ve got to have tickets for this concert, and nothing else will do. Under these circumstances a moderate change in price is not going to change your mind. What is your demand?
13 Factors Affecting Elasticity: Similarly, demand for life-saving medicine is usually inelastic. If the lack of substitutes can make demand inelastic, a wide choice of substitute goods can make demand elastic. Examples: brand of apple juice. Sodas, Chips, etc.
14
15 Relative Importance: A second factor in determining a good s elasticity of demand is how much of your budget you spend on the good. If you already spend a large share of your income on a good, a price increase will force you to make some tough choices.
16 Relative Importance: Unless you want to cut back drastically on the other goods in your budget, you must reduce consumption of that particular good by a significant amount to keep your budget under control. The higher the jump in price, the more you will have to adjust your purchases.
17 Relative Importance: o If you currently spend half of your budget on clothes, even a modest increase in the cost of clothing will probably cause a large reduction in the quantity you purchase. o Your demand will be elastic. o If the price of shoe laces doubled, would you cut back on your shoe lace purchases? o Probably not.
18 Necessities versus Luxuries: The third factor in a good s elasticity varies a great deal from person to person but it is important. Whether a person considers a good to be a necessity or a luxury has a great impact on a person s elasticity of demand for that good. A necessity is a good people will always buy, even when the price increases. Parents often regard milk as necessity but steak as a luxury.
19 Change Over Time: When a price changes, consumers often need time to change their spending habits. Consumers do not always react quickly to price increase, because it takes time to find substitutes. Because they cannot respond quickly to price changes, their demand is inelastic in the short term. Demand sometimes become more elastic over time, however because people can eventually find substitutes.
20
21
22 Change Over Time: Consider gasoline, a person might purchase a large vehicle that requires a greater volume of gasoline per mile to run. This person might work at a job many miles away from home and shop at a supermarket that is not local. These factors determined how much gasoline this person demands and one can be changed easily.
23 Elasticity and Revenue: Elasticity is important to the study of economics, because elasticity helps us measure how consumers respond to price changes for different products. Elasticity of demand determines how a change in prices will affect a firm s total revenue, or income.
24 Computing a Firm s Total Revenue: A company s total revenue is defined as the amount of money the company receives by selling its good. This is determined by two factors: The price of the goods, and the quantity sold.
25 Total Revenue and Elastic Demand: The law of demand tells us that an increase in price will decrease the quantity demanded. When a good has an elastic demand, raising the price of each unit sold by 20 percent will decrease the quantity sold by a large percentage.
26 Total Revenue and Elastic Demand: The same process can also work in reverse. If the firm were to reduce the price by a certain percentage, the quantity demanded could rise by an even greater percentage. In this case, total revenues could rise.
27 The elasticity of demand has these following factors: o The availability of substitute goods. o A limited budget that does not allow for price changes. o The perception of the good as a luxury item.
28 The elasticity of demand has these following factors: If these conditions are present, the demand for the good is elastic, and a firm may find that a price increase reduces its total revenue.
29 Total Revenue and Inelastic Demand: Remember that if demand is inelastic, consumers demand is not very responsive to price changes. When demand is inelastic, price and total revenue move in the same direction. An increase in price raises the total revenue and a decrease in price reduces total revenue.
30 Total Revenue and Inelastic Demand: A decrease in price will lead to an increase in quantity demanded even if demand is inelastic. However the percentage of increase in the quantity demanded will be less than the percentage of increase in price, and the firm s total revenue will decrease.
31 Elasticity and Pricing Policies: A firm needs to know whether the demand for its product is elastic or inelastic at a given price. The ways that elasticity or demand can affect a firm s total revenue. If a firm knows that the demand for its product is elastic at the current price, it knows that an increase in price would reduce total revenues. On the other hand, if a firm knows that the demand for its product is inelastic, at its current price, it knows that an increase in price will increase total revenue.
32 Much might be said to the young people regarding their privilege to help the cause of God by learning lessons of economy and self-denial. Many think that they must indulge in this pleasure and that, and in order to do this they accustom themselves to live up to the full extent of their income. God wants us to do better in this respect. {MYP 299.1}
33 Waste not your pennies and your shillings in purchasing unnecessary things. You may think these little sums do not amount to much, but these many littles will prove a great whole. If we could, we would plead for the means that is spent in needless things, in dress and selfish indulgence. Poverty in every shape is on every hand. And God has made it our duty to relieve suffering humanity in every way possible. {AH 383.2} The Lord would have His people thoughtful and caretaking. He would have them study economy in everything, and waste nothing. {AH 383.3} The amount daily spent in needless things, with the thought, "It is only a nickel," "It is only a dime," seems very little; but multiply these littles by the days of the year, and as the years go by, the array of figures will seem almost incredible. {AH 384.1}
34 Every week you should lay by in some secure place five or ten dollars not to be used up unless in case of sickness. With economy you may place something at interest. With wise management you can save something after paying your debts. {AH 396.2} I have known a family receiving twenty dollars a week to spend every penny of this amount, while another family of the same size, receiving but twelve dollars a week, laid aside one or two dollars a week, managing to do this by refraining from purchasing things which seemed to be necessary but which could be dispensed with. {AH 396.3}
35 Discussion Question Try to find ways to save money by listing five things that you feel is unnecessary that you normally buy and explain the reason why it is unnecessary.
Ch. 7 outline. 5 principles that underlie consumer behavior
Ch. 7 outline The Fundamentals of Consumer Choice The focus of this chapter is on how consumers allocate (distribute) their income. Prices of goods, relative to one another, have an important role in how
More informationDemand- how much of a product consumers are willing and able to buy at a given price during a given period.
Ch. 4 Demand Ch. 4.1 The Demand Curve (Learning Objective- explain the Law of Demand) In your world- What are the goods and services that you demand? What happens to your buying when the price goes up
More informationChapter 6 Elasticity: The Responsiveness of Demand and Supply
Economics 6 th edition 1 Chapter 6 Elasticity: The Responsiveness of Demand and Supply Modified by Yulin Hou For Principles of Microeconomics Florida International University Fall 2017 The Price Elasticity
More informationPrinciples of MicroEconomics: Econ102
Principles of MicroEconomics: Econ102 Price Elasticity of Demand: The responsiveness of the quantity demanded to a change in price, measured by dividing the percentage change in the quantity demanded of
More informationChapter 4: Understanding Demand
SCHS SOCIAL STUDIES What you need to know UNIT TWO 1. What a competitive market is and how it is described by the supply and demand model 2. What a supply curve shows 3. The difference between a movement
More informationFigure 4 1 Price Quantity Quantity Per Pair Demanded Supplied $ $ $ $ $10 2 8
Econ 101 Summer 2005 In class Assignment 2 Please select the correct answer from the ones given Figure 4 1 Price Quantity Quantity Per Pair Demanded Supplied $ 2 18 3 $ 4 14 4 $ 6 10 5 $ 8 6 6 $10 2 8
More informationChapter 2 Market analysis
Chapter 2 Market analysis Market analysis is concerned with collecting and interpreting data about customers and the market so that businesses adopt a relevant marketing strategy. Businesses carry out
More informationChapter 6. Elasticity
Chapter 6 Elasticity Both the elasticity coefficient and the total revenue test for measuring price elasticity of demand are presented in this chapter. The text discusses the major determinants of price
More informationMultiple choice questions 1-60 ( 1.5 points each)
NAME: STUDENT ID: Final Exam ECON 101, Section 2 summer 2004 Ying Gao Instructions Please read carefully! 1. Print your name and student ID number at the top of this cover sheet. 2. Check that your exam
More informationLesson-9. Elasticity of Supply and Demand
Lesson-9 Elasticity of Supply and Demand Price Elasticity Businesses know that they face demand curves, but rarely do they know what these curves look like. Yet sometimes a business needs to have a good
More informationDemand. How do we decide what to buy? Chapter. on the go. Essential Question, Chapter 8. Section 1 Understanding Demand
Chapter 8 Demand Essential Question, Chapter 8 How do we decide what to buy? Section 1 Understanding Demand Section 2 Shifts in the Demand Curve Section 3 Elasticity of Demand To on the go To study anywhere,
More informationChapter 4. Elasticity. In this chapter you will learn to. Price Elasticity of Demand
Chapter 4 Elasticity In this chapter you will learn to 1. Explain the meaning of price elasticity of demand and how it is measured. 2. Describe the relationship between demand elasticity and total expenditure.
More information1.2.3 Price, Income and Cross Elasticities of Demand
1.2.3 Price, Income and Cross Elasticities of Demand Price elasticity of demand The price elasticity of demand is the responsiveness of a change in demand to a change in price. The formula for this is:
More informationReading Essentials and Study Guide
Lesson 3 Cost, Revenue, and Profit Maximization ESSENTIAL QUESTION How do companies determine the most profitable way to operate? Reading HELPDESK Academic Vocabulary generates produces or brings into
More informationInterpreting Price Elasticity of Demand
INTRO Go to page: Go to chapter Bookmarks Printed Page 466 Interpreting Price 9 Behind the 48.2 The Price of Supply 48.3 An Menagerie Producer 49.1 Consumer and the 49.2 Producer and the 50.1 Consumer,
More informationMarginal Costing Q.8
Marginal Costing. 2008 Q.8 Break-Even Point. Before tackling a marginal costing question, it s first of all crucial that you understand what is meant by break-even point. What this means is that a firm
More informationMARKET STRUCTURES. Economics Marshall High School Mr. Cline Unit Two FC
MARKET STRUCTURES Economics Marshall High School Mr. Cline Unit Two FC Price Discrimination Our previous example assumed that the monopolist must charge the same price to all consumers. But in some cases,
More informationUnderstanding Price Elasticity: It s No Stretch!
Understanding Price Elasticity: It s No Stretch! Lesson by Lesley Mace, senior economic and financial education specialist, Federal Reserve Bank of Atlanta, Jacksonville Branch Lesson description An important
More informationIntroduction to Agricultural Economics Agricultural Economics 105 Spring 2016 First Hour Exam Version 1
1 Name Introduction to Agricultural Economics Agricultural Economics 105 Spring 2016 First Hour Exam Version 1 There is only ONE best, correct answer per question. Place your answer on the attached sheet.
More informationStudent Activities. Lesson Four. Shopping Wisely 04/09
Student Activities $ Lesson Four Shopping Wisely 04/09 comparing choices Compare your choices for buying soft drinks and clothing items using the charts below. Soft Drink One Can vending machine brand
More informationWhy Do So Many Online Businesses Fail?
Why Do So Many Online Businesses Fail? Why do online businesses fail? This question isn t easy to answer. More often than not, there are multiple factors that prevent online businesses from turning a profit,
More informationCopyright 2010 Pearson Education Canada
What are the effects of a high gas price on buying plans? You can see some of the biggest effects at car dealers lots, where SUVs remain unsold while sub-compacts sell in greater quantities. But how big
More informationMEDIA LITERACY STUDENT GUIDE. Copyright 2014 USA WEEKEND Magazine. All rights reserved. USA WEEKEND is a Gannett Co., Inc. property.
MEDIA STUDENT GUIDE Copyright 2014 USA WEEKEND Magazine. All rights reserved. USA WEEKEND is a Gannett Co., Inc. property. Information is everywhere. We take it in whether we want to or not. Some of the
More informationFor each of the questions below, show all work and include an explanation of your method of solution.
N-Q Ice Cream Van Alignments to Content Standards: N-Q.A.1 Task You are considering driving an ice cream van during the summer vacation. Your friend, who knows everything tells you that It s easy money.
More informationExam 3 Practice Questions
Exam 3 Practice Questions 1. The price elasticity of demand is a measure of: a) how quickly a particular market reaches equilibrium. b) the change in supply associated with lower prices. c) the percent
More informationTeacher's Guide. Lesson Four. Shopping Wisely 04/09
Teacher's Guide $ Lesson Four Shopping Wisely 04/09 shopping wisely websites websites for shopping wisely The internet is probably the most extensive and dynamic source of information in our society. The
More informationMicro Chapter 7 study guide questions
Micro Chapter 7 study guide questions Multiple Choice Identify the choice that best completes the statement or answers the question. 1. A 15 percent increase in the price of beef reduces the quantity of
More informationThe following content is provided under a Creative Commons license. Your support will help
MITOCW Lecture 6 The following content is provided under a Creative Commons license. Your support will help MIT OpenCourseWare continue to offer high quality educational resources for free. To make a donation
More informationMerchandise Forecasting and Budgeting
Chapter - 3 Merchandise Forecasting and Budgeting ============================================================= The Process of Merchandise Planning Customers visiting a retail shop, very often, know what
More informationSocial Media Is More Than a Popularity Contest
Capturing Attention, Building Relationships, and Making Sales in a Digital World Social media doesn t sell cars is still a common perception in the automotive industry. The truth? It doesn t, directly
More informationShape Up Your Spending
Family and Consumer Sciences Financial Fitness Series: Shape Up Your Spending Judith R. Urich, Ph.D., CFP Family Resource Management Specialist Arkansas Is Our Campus Visit our web site at: http://www.uaex.edu
More informationChapter 4:2: SECTION 2 SHIFTS IN DEMAND CURVE:
Chapter 4:2: SECTION 2 SHIFTS IN DEMAND CURVE: Objectives: We will study the factors that create changes in demand that can cause a shift in the demand curve. Give an example of how a change in demand
More information2007 Thomson South-Western
Elasticity... allows us to analyze supply and demand with greater precision. is a measure of how much buyers and sellers respond to changes in market conditions THE ELASTICITY OF DEMAND The price elasticity
More informationStarting Your Own Business
Grade Five Starting Your Own Business Overview Students listen to several chapters from The Toothpaste Millionaire, by Jean Merrill, to learn about starting a business and earning a profit. They complete
More informationBlack Friday. The Friday After Thanksgiving
Black Friday The Friday After Thanksgiving Learning Objectives: Consider the occurrence of Black Friday Research and debate the idea that Americans are programmed to shop. Opening Bell Work: Reply to quote
More informationDepartment of Urban Studies and Planning Microeconomics Fall, Answers to the First Midterm
Department of Urban Studies and Planning Frank Levy 11.203 Microeconomics Fall, 2006 Answers to the First Midterm 1) (25 points). At different times, federal, state and local governments have intervened
More informationChapter 6 Elasticity: The Responsiveness of Demand and Supply
hapter 6 Elasticity: The Responsiveness of emand and Supply 1 Price elasticity of demand measures: how responsive to price changes suppliers are. how responsive sales are to changes in the price of a related
More informationEcon 101: Principles of Microeconomics
Econ 101: Principles of Microeconomics Ch. 3: Supply and Demand: A Model of a Competitive Market Fall 2010 Herriges (ISU) Chapter 3: Supply and Demand Fall 2010 1 / 37 Outline 1 The Demand Curve Building
More informationIntroduction to Agricultural Economics Agricultural Economics 105 Spring 2017 First Hour Exam Version 1
1 Name Introduction to Agricultural Economics Agricultural Economics 105 Spring 2017 First Hour Exam Version 1 There is only ONE best, correct answer per question. Place your answer on the attached sheet.
More informationEconomics: New Ways of Thinking Ancillary Sampler
Economics: New Ways of Thinking Ancillary Sampler Thank you for your interest in EMC Publishing s Economics: New Ways of Thinking! By now you have probably discovered why we were so excited to offer our
More informationThe E-Myth Revisited Michael E. Gerber
The E-Myth Revisited Michael E. Gerber Four Ideas 1. The E-Myth is that small businesses are started by entrepreneurs risking capital to make a profit. This is not so 2. The Turn-Key Revolution is changing
More informationTopic 4c. Elasticity. What is the difference between this. and this? 1 of 23
Topic 4c Elasticity What is the difference between this and this? 1 of 23 Defining and Measuring Elasticity (I) Price elasticity of demand Ø The price elasticity of demand is the ratio of the percent change
More informationChapter 6 Lecture - Elasticity: The Responsiveness of Demand and Supply
Chapter 6 Lecture - Elasticity: The Responsiveness of Demand and Supply 1 The Price Elasticity of Demand and Its Measurement We define price elasticity of demand and understand how to measure it. Although
More informationFEEDBACK TUTORIAL LETTER
FEEDBACK TUTORIAL LETTER 1 ST SEMESTER 2017 ASSIGNMENT 1 [] MAY 2017 1 COURSE: COURSE CODE: TUTORIAL LETTER: 01/2017 DATE: 03/ 2017 Dear Student Thank you for submitting your first assignment on time.
More informationMultiple Choice Identify the letter of the choice that best completes the statement or answers the question.
Final day 2 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. 1. What determines how a change in prices will affect total revenue for a company?
More informationA CEO s perspective. The successful non-executive board member is passionate and engaged without stepping over the critical line
John Pettigrew, National Grid CEO The successful non-executive board member is passionate and engaged without stepping over the critical line In Search of the Extraordinary Executive 10 keys to becoming
More information1. T F The resources that are available to meet society s needs are scarce.
1. T F The resources that are available to meet society s needs are scarce. 2. T F The marginal rate of substitution is the rate of exchange of pairs of consumption goods or services to increase utility
More informationFin 345: Lesson 2 (Part 3) Instructor Glenn E. Crellin Slide #1. Slide Title: Fin 345 Lesson 2 (Part 3)
Fin 345: Lesson 2 (Part 3) Instructor Glenn E. Crellin Slide #1 Slide Title: Fin 345 Lesson 2 (Part 3) -Fin 345 Lesson 2 (Part 3) -Understanding Real Estate Markets -Floyd & Allen -Real Estate Principles,
More informationElasticity and Its Applications PRINCIPLES OF ECONOMICS (ECON 210) BEN VAN KAMMEN, PHD
Elasticity and Its Applications PRINCIPLES OF ECONOMICS (ECON 210) BEN VAN KAMMEN, PHD Introduction This is the first of 4 chapters that comprise the middle of this course. These chapters are extensions
More informationMindset Of The Millionaire Traders
Mindset Of The Millionaire Traders Windsor Advisory Services Mindset Of The Millionaire Traders The world s top traders may all have different methods for making money but they all tend to share the same
More informationSupply and Demand. The Basis of Microeconomics
Supply and Demand The Basis of Microeconomics Learning Targets I can explain how the forces of supply and demand impact a market economy and what variables affect these forces. (Including a discussion
More information2, 1 EE CONOMIC SYSTEMS
2, 1 For use with textbook pages 31 38 EE CONOMIC SYSTEMS KEY TERMS economic system The way in which a nation uses its resources to satisfy its people s needs and wants (page 31) traditional economy A
More informationElasticity and Its Applications. Copyright 2004 South-Western
Elasticity and Its Applications 5 Copyright 2004 South-Western Copyright 2004 South-Western/Thomson Learning Elasticity... allows us to analyze supply and demand with greater precision. is a measure of
More informationTeacher's Guide. Lesson Four. Comparison Shopping 04/09
Teacher's Guide $ Lesson Four Comparison Shopping 04/09 comparison shopping websites websites for comparison shopping The internet is probably the most extensive and dynamic source of information in our
More informationSupply and Demand. Objective 8.04
Supply and Demand Objective 8.04 Supply and Demand Pages 258-259 259 copy bold terms and give a definition or description of each. Page 261 Copy the questions Worksheet A-2A 1. Surplus When the amount
More informationMultiple Choice Part II, A Part II, B Part III Total
SIMON FRASER UNIVERSITY ECON 103 (2007-2) MIDTERM EXAM NAME Student # Tutorial # Multiple Choice Part II, A Part II, B Part III Total PART I. MULTIPLE CHOICE (56%, 1.75 points each). Answer on the bubble
More informationECO 610: Lecture 2. Theory of Demand; Elasticity; and Marketing and Consumer Behavior
ECO 610: Lecture 2 Theory of Demand; Elasticity; and Marketing and Consumer Behavior Theory of Demand; Elasticity; and Marketing and Consumer Behavior: Outline Demand Theory and Marketing Research Households
More informationMillennials are crowdsourcingyouhow companies and brands have the chance to do
millennial pulse 2017 SPECIAL REPORT Millennials are crowdsourcingyouhow companies and brands have the chance to do what Millennials think they can t do themselves Be the crowd. Millennials are counting
More informationAmherst College Department of Economics Economics 111 Section 3 Fall 2012 Monday, September 17 Lecture: Elasticity
Amherst College epartment of Economics Economics 111 Section 3 Fall 2012 Monday, September 17 Lecture: Elasticity Market emand and Market Supply Curves Market demand curve: How many cans of beer would
More informationECO 100Y L0201 INTRODUCTION TO ECONOMICS. Midterm Test #1
epartment of Economics Prof. Gustavo Indart University of Toronto October 26, 2007 ECO 100Y L0201 INTROUCTION TO ECONOMICS SOLUTIONS Midterm Test #1 LAST NAME FIRST NAME INSTRUCTIONS: STUENT NUMBER 1.
More informationFundamentals of Markets
Fundamentals of Markets Daniel Kirschen University of Manchester 2006 Daniel Kirschen 1 Let us go to the market... Opportunity for buyers and sellers to: compare prices estimate demand estimate supply
More informationLesson 18: Writing, Evaluating, and Finding Equivalent Expressions with Rational Numbers
Lesson 18: Writing, Evaluating, and Finding Equivalent Expressions with Rational Student Outcomes Students create equivalent forms of expressions in order to see structure, reveal characteristics, and
More informationTraditional vs. KPI Behavior Management Pay Plans
Traditional vs. KPI Behavior Management Pay Plans Presented by: Ray Branch President The KEEPS Corporation Dealer s Edge July 17, 2014 www.keepscorp.com Notes: 2 Notes: 3 Notes: 4 Notes: 5 Notes: 6 Notes:
More informationCONSUMER NEEDS AND WANTS. Unit 1
CONSUMER NEEDS AND WANTS Unit 1 CONSUMER NEEDS AND WANTS How many times have you asked your parents for something and they have said no, you don t need it or have you ever asked yourself when you are considering
More informationNAME DATE CLASS. In the first column, answer the questions based on what you know before you study. After this lesson, complete the last column.
NAME DATE CLASS Lesson 1: Gross Domestic Product ESSENTIAL QUESTION Why and how do people make economic choices? GUIDING QUESTIONS 1. Why is Gross Domestic Product important to a nation? 2. Why is GDP
More informationEdexcel (B) Economics A-level
Edexcel (B) Economics A-level Theme 1: Markets, Consumers and Firms 1.3 Introducing the Market 1.3.3 Price determination Notes Equilibrium price and quantity and how they are determined This is when supply
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
HW 2 - Micro - Machiorlatti MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) What is measured by the price elasticity of supply? 1) A) The price
More informationRational Numbers in Mathematics. Lecture 2.1: Fractions INTRODUCTION 2.0
Rational Numbers in Mathematics INTRODUCTION 2.0 In this lesson, we will focus on the exploration of rational numbers in all their forms and operation on rational numbers. We will explore fractions and
More informationAnytime Adviser New Car Buying Coach
Anytime Adviser New Car Buying Coach Welcome. This interactive guide offers you strategies for getting the best deal on a new car. Let's begin. Interested in a little guidance to negotiate your best deal
More informationWith Great Convenience Comes Great Responsibility. Decoding the fulfilment needs of today s retail customer
With Great Convenience Comes Great Responsibility Decoding the fulfilment needs of today s retail customer understanding convenience In an always on world, consumers value convenience above everything
More informationEcon Test 2B Dr. Rupp Tuesday, March 3, 2009 Pledge: I have neither given or received aid on this exam Signature
Econ 2113 - Test 2B Dr. Rupp Tuesday, March 3, 2009 Name Pledge: I have neither given or received aid on this exam Signature Multiple Choice Identify the letter of the choice that best completes the statement
More informationP.O. Box 12135, Costa Mesa, CA Phone: Fax:
P.O. Box 12135, Costa Mesa, CA 92627 Phone: 800.553.8814 Fax: 877.577.5677 Dear Buzz Bite Vending Distributor, September 26, 2008 Vroom Foods, Inc. has always operated with a simple business strategy based
More informationChapter 2 Marketing. Different types of markets
Chapter 2 Marketing Marketing is the management process involved in identifying, anticipating and satisfying customer requirements profitably. Source: The Institute of Marketing. There are many different
More informationDemand and Supply: Part II
Demand and Supply: Part II As you may recall, there are a number of things that can have an effect on demand and supply curves. What are some of them? Some of the following could have an effect on demand
More informationMath 1314 Lesson 8 Business Applications: Break Even Analysis, Equilibrium Quantity/Price
Math 1314 Lesson 8 Business Applications: Break Even Analysis, Equilibrium Quantity/Price Three functions of importance in business are cost functions, revenue functions and profit functions. Cost functions
More information1 of 14 5/1/2014 4:56 PM
1 of 14 5/1/2014 4:56 PM Any point on the budget constraint Gives the consumer the highest level of utility. Represent a combination of two goods that are affordable. Represents combinations of two goods
More informationThe Retail Customer Experience Which elements of the shopping experience matter most?
The Retail Customer Experience Which elements of the shopping experience matter most? September 2015 When it comes to shopping behavior, price is always a key motivator. However, to sustain a customer
More informationRESEARCH NOTE IMPROVING ANALYTICS DEPLOYMENTS WITH IBM PARTNERS
Document L127 RESEARCH NOTE IMPROVING ANALYTICS DEPLOYMENTS WITH IBM PARTNERS THE BOTTOM LINE In analyzing deployments of IBM Business Analytics Software, Nucleus has found that midsize organizations adopting
More informationECO 211 Microeconomics Yellow Pages ANSWERS. Unit 2
Fall 2012 ECO 211 Microeconomics Yellow Pages ANSWERS Unit 2 Mark Healy William Rainey Harper College E-Mail: mhealy@harpercollege.edu Office: J-262 Phone: 847-925-6352 Price Elasticity of Demand Calculate
More informationPricing Concepts. Essentials of 6 Marketing Lamb, Hair, McDaniel CHAPTER 19. Designed by Eric Brengle B-books, Ltd.
Pricing Concepts CHAPTER 19 Designed by Eric Brengle B-books, Ltd. Essentials of 6 Marketing Lamb, Hair, McDaniel Prepared by Deborah Baker Texas Christian University THE IMPORTANCE OF PRICE Discuss the
More informationAfter studying this chapter you will be able to
3 Demand and Supply After studying this chapter you will be able to Describe a competitive market and think about a price as an opportunity cost Explain the influences on demand Explain the influences
More informationPERCENTS - Teacher Notes Unit 6-7 th grade
PERCENTS - Teacher Notes Unit 6-7 th grade Percents are special fractions whose denominators are. The number in front of the percent symbol (%) is the numerator. The denominator is not written, but understood
More informationSTAYING ON BUDGET: LEADER'S NOTES. in partnership with
STAYING ON BUDGET: LEADER'S NOTES The Scout Association Registered Charity Numbers 306101 (England and Wales) and SC038437 (Scotland). introduction One of the most important aspects of managing your money
More informationExam 1 Version A A = 4; A- = 3.7; B+ = 3.3; B = 3.0; B- = 2.7; C+ = 2.3; C = 2.0; C- = 1.7; D+ = 1.3; D = 1.0; F = 0
BA 210 Exam 1 Version A Dr. Jon Burke This is a 100-minute exam (1hr. 40 min.). There are 8 questions (12.5 minutes per question). The exam begins exactly at the normal time that class starts. To avoid
More informationWISCONSIN SCHOOL OF BUSINESS TITANIUM. Markstrat Simulation
WISCONSIN SCHOOL OF BUSINESS TITANIUM Markstrat Simulation Contents Introduction: Executive Summary... 2 Recap: First 3 Periods... 3 Period 0... 3 Period 1... 4 Period 2... 5 Lessons Learned... 6 Customer...
More informationNegotiation and Selling Against Lower-Priced Competition
Negotiation and Selling Against Lower-Priced Competition Learning Objectives/Outcomes: To identify how and when to present price To avoid common mistakes that invite price resistance To effectively manage
More informationFrom contact to close
From contact to close Using lead nurturing to grow your real estate business from your friends at Introduction WHAT IS LEAD NURTURING? Put simply, lead nurturing is crafting a relationship with potential
More informationYOUR LAST MAILING YOUR WEBMASTER YOUR ACTIVE CUSTOMER. But your results are not everything they could be.
YOUR LAST MAILING WENT OUT ON TIME AND ON BUDGET. But your results are not everything they could be. YOUR WEBMASTER GAVE YOUR SITE A HOT NEW LOOK. 321 W. Lake Street, Suite F Elmhurst, Illinois 60126 P
More informationEcon 101, section 3, F06 Schroeter Exam #2, Red. Choose the single best answer for each question.
Econ 101, section 3, F06 Schroeter Exam #2, Red Choose the single best answer for each question. 1. Which of the following is consistent with elastic demand? a. A 10% increase in price results in a 5%
More informationWORKED FAN LAW EXAMPLES
Page 1 WORKED FAN LAW EXAMPLES Fan Laws The empirical means very basic :-) FAN LAWS are as follows:- Q 1 = RPM 1 Q 2 RPM 2 Basically this equation says that if fan RPM increases by 10% then the flowrate
More informationUnit I The Principles of Economics
Economics Chapters 1-2 & 4-6 Duke Chapter 1 Unit I The Principles of Economics Explain the difference between a need and a want. Explain the difference between goods and services. Scarcity - Find three
More informationMore Bang for Your Buck! EPISODE # 303
More Bang for Your Buck! EPISODE # 303 LESSON LEVEL Grades 6-8 KEY TOPICS Wants vs. Needs Comparison Shopping Bartering LEARNING OBJECTIVES 1. Learn the difference between wants and needs. 2. Understand
More informationChapter 22 Making Consumer Decisions
Chapter 22 Making Consumer Decisions Unit 8 Buying Goods and Services Date Section 22.1 Consumer Choices Section Objectives Identify four decisions that consumers make when they buy goods and services.
More informationMarket Structures. Perfect competition Monopolistic Competition Oligopoly Monopoly
Market Structures The classification of market structures can be arranged along a continuum, ranging from perfect competition, the most competitive market, to monopoly, the lease competitive: Perfect competition
More informationPRICING. Quantity demanded is the number of the firm s product customers wish to purchase. What affects the quantity demanded?
PRICING So far we have supposed perfect competition: the firm cannot affect the price. Whatever the firm produces is sold at the world market price. Most commodity businesses are highly competitive: regardless
More information3rd Party Management: Opportunity or Cost
3rd Party Management: Opportunity or Cost A Research Report on the State of 3rd Party Management by Dr. Kevin McCormack Dr. Marcos Paulo Valadares de Oliveira Dr. Peter Trkman Simplify the Complexity of
More informationLECTURE NOTE 2 UTILITY
LECTURE NOTE 2 UTILITY W & L INTERMEDIATE MICROECONOMICS PROFESSOR A. JOSEPH GUSE In the last note Preferences we introduced the mathematical device of a preference relation. Let it be said first that
More informationSpeech to the Bell Telephone System s General Sales Conference January-February 1929
Speech to the Bell Telephone System s General Sales Conference January-February 1929 Page, A. W. (1929, January - February). Coordination of Sales and Advertising Activities. Presented at the Bell Telephone
More informationOUTCOME-BASED BUSINESS MODELS IN THE INTERNET OF THINGS
OUTCOME-BASED BUSINESS MODELS IN THE INTERNET OF THINGS EDY LIONGOSARI VIDEO TRANSCRIPT Tell me a little bit about yourself and your background in IoT. I m Edy Liongosari, I appreciate this opportunity
More informationExploring Economics Project Ideas
Exploring Economics Project Ideas Unit 1 Project Ideas What would you do with five hundred dollars? Explain your reasons (see Lesson 1). Explain the ways that your household is involved in economics (jobs
More information