Price and Quantity Adjustments for Australian Tourism and Hospitality Products
Price and Quantity Adjustments for Australian Tourism and Hospitality Products.
EXECUTIVE SUMMARY:
This report is aimed to provide knowledge about the fundamental microeconomics which is demand and supply. Through the research of books and online information, the following report demonstrates the information about the change in supply and demand by price and non-price determinants. These would be illustrated through the analysis of three different scenarios. In addition, the report also takes a look at price elasticity of demand as it has important effect on the total revenue. It is suggested that sellers should response differently at different situation of price elasticity of demand and the change of demand and supply.
TABLE OF CONTENTS
I.INTRODUCTION page 5
II.DEMAND AND SUPPLY page 5-8
a.Impact of decrease in the price of tourism products in the United States on the market for Australian tourism products page 5-6
b.The impact on the market for hotel rooms if the price of airline flights increases page 6-7
c. The influence on the restaurant meals of the imposition of 20% service tax on each meal price page 7-8
III.PRICE ELASTICITY OF DEMAND page 8-12
a.What is price elasticity of demand? Page 8-9
b.Types of price elasticity of demand page 9-12
c.Effect of price elasticity of demand on sellers page 12
IV.CONCLUSION page 12-13
BIBLIOGRAPHY page 13 TABLE OF FIGURE
Figure 1 page 6
Figure 2 page 7
Figure 3 page 8
Figure 4 page 10
Figure 5 page 10
Figure 6 page 11
I. INTRODUCTION:
In microeconomics, supply and demand are one of the most important aspects. The law of demand and supply explains how the world of microeconomics operates from day to day. Supply and Demand Law demonstrates the relation between price and quantity when there is change in price or change by other factors. This report will look at the basic
EXECUTIVE SUMMARY:
This report is aimed to provide knowledge about the fundamental microeconomics which is demand and supply. Through the research of books and online information, the following report demonstrates the information about the change in supply and demand by price and non-price determinants. These would be illustrated through the analysis of three different scenarios. In addition, the report also takes a look at price elasticity of demand as it has important effect on the total revenue. It is suggested that sellers should response differently at different situation of price elasticity of demand and the change of demand and supply.
TABLE OF CONTENTS
I.INTRODUCTION page 5
II.DEMAND AND SUPPLY page 5-8
a.Impact of decrease in the price of tourism products in the United States on the market for Australian tourism products page 5-6
b.The impact on the market for hotel rooms if the price of airline flights increases page 6-7
c. The influence on the restaurant meals of the imposition of 20% service tax on each meal price page 7-8
III.PRICE ELASTICITY OF DEMAND page 8-12
a.What is price elasticity of demand? Page 8-9
b.Types of price elasticity of demand page 9-12
c.Effect of price elasticity of demand on sellers page 12
IV.CONCLUSION page 12-13
BIBLIOGRAPHY page 13 TABLE OF FIGURE
Figure 1 page 6
Figure 2 page 7
Figure 3 page 8
Figure 4 page 10
Figure 5 page 10
Figure 6 page 11
I. INTRODUCTION:
In microeconomics, supply and demand are one of the most important aspects. The law of demand and supply explains how the world of microeconomics operates from day to day. Supply and Demand Law demonstrates the relation between price and quantity when there is change in price or change by other factors. This report will look at the basic
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