goods Market is defined as a group of buyers and sellers of a certain goods or services. Demand is the willingness and ability to buy goods in a set period of time at a certain price‚ ceteris paribus. Supply is the willingness and ability to sell goods in a set period of time at a certain price‚ ceteris paribus. The correlation of price and demand‚ and price and supply are known as demand relationship and supply relationship‚ respectively. The relationship between supply and demand resulting in
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quantity which people are willing and able to buy at different prices‚ in a specified time period‚ ceteris paribus Demand Analysis:background • Willing and able: not just what people want‚ but also what they can afford to pay for • Different prices: prices are allowed to vary to see how quantity demanded will change • Specified time period: demand for a given period of time. Note: Ceteris paribus: Latin phrase that means all other things remaining constant. Law of Demand When price increase‚
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The Basic Economic Problem What Economics is really about Scarcity Economics is a social science that studies the allocation of scarce resources Scarcity – an unlimited demand for limited resources There simply isn’t enough to go around What are some of the resources that you have? Economic Roles In the economy‚ there are two roles that are played out PRODUCER – also called manufacturers‚ suppliers‚ or sellers. CONSUMER – also called buyers or users Which are you? From the Producers’ Perspective
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1.Economics is best defined as the study of A) financial decision-making.B) how consumers make purchasing decisions.C) choices made by people faced with scarcity.D) inflation‚ unemployment‚ and economic growth.Points Earned: 0.4/0.4Correct Answer(s): C 2.Scarcity can best be defined as a situation in whichA) there are no buyers willing to purchase what sellers have produced.B) there are not enough goods to satisfy all of the buyers’ demand.C) the resources we use to produce goods and services are
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`` Microeconomics - Meaning Scope Features Uses Limitations Post : Gaurav Akrani Date : 11/10/2010 08:36:00 PM IST No Comments Labels : Economics‚ Study Notes Study of Economics - Micro & Macro Economics The study of economics is divided by the modern economists into two parts viz. Micro economics and Macro economics. This division is shown in the figure / chart above. Micro economics and Macro economics‚ both the terms were used in 1933 by Prof. Ragnar Frisch from Oslo University of Norway
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INTRODUCTION DEFINITION OF TERMS Managerial Economics Is a branch of economics that applies microeconomic analysis to specific business decisions. It bridges economic theory and economics in practice. Managerial economics provides a set of tools‚ techniques‚ methodologies‚ guidance and insights that can help in making better and value-adding decisions in business and for analyzing decision problems and developing criteria for choosing the best possible solution to problems. Consumer Behavior Is the
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Economics Definition 1) Scarcity- the limited nature of society’s resources 2) Economics- the study of how society manages it’s scarce resources 3) Efficiency- the property of society getting the most it can from it’s scarce resources 4) Equality- the property of distributing economics prosperity uniformly among the members of society 5) Opportunity cost- whatever must be given up or forgone to obtain some item 6) Rational people- people who systematically and purposefully
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MKC- Pelsmacker – Chapter 6 : Budgets Chapter objectives: * Understand how communications budget may influence communications effectiveness. * Get an overview of theoretical and practical marketing communications budgeting methods. * Optimise share-of-voice decisions. * Indentify factors that influence budgeting decisions. * Decide upon a communications budget for a new product or brand. This chapter discusses the elemets a marketer should consider when making budget allocations
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THE PRODUCTION PROCESS :THE BEHAVIOR OF PROFIT-MAXIMIZING FIRMS THE BEHAVIOR OF PROFIT-MAXIMIZING FIRMS Production : The process by which inputs are combined‚transformed‚and turned into outputs. Firm : An organization that comes into being when a person or group of people decides to produce a good or services to made a perceived demand Three decisions that all firms must make: 1. How much output to supply 2. How to produce that output 3. How much of each input to demand a) PROFITS AND ECONOMIC
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and other promotional techniques to reduce elasticity. INCOME ELASCITIY OF DEMAND: In economics‚ income elasticity of demand measures the responsiveness of the demand for a good to a change in the income of the people demanding the good‚ ceteris paribus. It is calculated as the ratio of the percentage change in demand to the percentage change in income. For example‚ if‚ in response to a 10% increase in income‚ the demand for a good increased by 20%‚ the income elasticity of demand would be 20%/10%
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