An oligopoly describes a market situation in which there are limited or few sellers. Each seller knows that the other seller or sellers will react to its changes in prices and also quantities. This can cause a type of chain reaction in a market situation. In the world market there are oligopolies in steel production‚ automobiles‚ semi-conductor manufacturing‚ cigarettes‚ cereals‚ and also in telecommunications. Often times oligopolistic industries supply a similar or identical product. These
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Q: Determining the demand for a product is often the responsibility of the strategic marketer. (a) Define and describe the “demand curve”. (b) Assess what information may be helpful to the strategic marketer in order to determine demand. (c) Discuss the factors that may create a fluctuation in demand. The demand curve is the graph depicting the relationship between the price of a certain commodity and the amount of it that consumers are willing and able to purchase at that given price.
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services are determined in markets B. private firms and households respond to taxes and subsidies C. people make choices in the presence of scarcity and the results of those choices. D. interest rates and exchange rates are determined 2. The scarcity principle implies that A. people will never be satisfied with what they have B. as wealth increases‚ making choices becomes less necessary C. the prices of scarce goods must rise due to excess demand D. choices must be made
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Literature Review Demand and supply have been generalized to explain macroeconomic variables in a market economy. The Aggregate Demand-Aggregate Supply model is the most direct application of supply and demand to macroeconomics. Compared to microeconomic uses of demand and supply‚ different theoretical considerations apply to such macroeconomic counterparts as aggregate demand and aggregate supply. The AD-AS or Aggregate Demand-Aggregate Supply model is a macroeconomic model that explains price
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Electricity tariff hike from April Published on Tuesday‚ 12 March 2013 11:57 The Chairman of the Public Utilities Commission (PUC) Dr. Jayatissa De Costa has said that the public opinion regarding the proposed tariffs will also be taken into consideration before the price hike is introduced. According to the CEB proposal‚ a home using 40 units of electricity will have to pay Rs.384 instead of the previously paid sum of Rs. 244. 95. Under the new proposal‚ 0-30 units
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1. Suppose there are 100 consumers with identical individual demand curves. When the price of a movie ticket is $8‚ the quantity demanded for each person is 5. When the price is $4‚ the quantity demanded for each person is 9. Assuming the law of demand holds‚ which of the following choices is the most likely quantity demanded in the market when the price is $6? Explain and show calculations‚ While the question asks of the choices given what the quantity demanded will be‚ there are no choices
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growth rate of 3%? Answer: P = $40/(0.05 - 0.03) = $40/0.02 = $2‚000 Topic 2: Supply and Demand 1) Suppose that the demand for oranges increase. Explain the long -run effects of the guiding function of price in this scenario. Answer: In the long run‚ the higher price of oranges will signal more firms to enter the orange market‚ as it will seem more profitable than some other markets. As firms enter‚ supply increases‚ causing the price to fall relative to the short-run price and
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is discrimination against them in other areas of the city. Rents paid are a very high percent of peoples’ incomes. (a) Would the demand for apartments in this area be relatively inelastic or relatively elastic? State why. (b) Would the supply of apartments in this area be relatively inelastic or relatively elastic? State why. 1 (c) Draw the demand and supply curves as you have described them‚ showing the initial equilibrium price and quantity. Label carefully. (d) Now assume the government creates
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3/23/13 Monopoly of Indian Railways : IIM Case Study | MBA Projects Home Download Projects Projects Contact Project Help! Ads by Google ► Railway ► Rail ► India ► Monopoly Want to save on Tax? sundarammutual.com A Doosra Advantage of tax benefits Only with Sundaram Mutual Funds MBA Projects Help for Management Projects‚ MBA Projects and Reports Search 639 RSS Entries Download Projects Management Marketing Ads by Google ► India Seven ► Safety Rail ► Trains
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The demand curve that an individual firm faces is called the residual demand curve: the market demand that is not met by other sellers at any given price. The firm ’s residual demand function‚ Dr(p)‚ shows the quantity demanded from the firm at price p. A firm sells only to people who have not already purchased the good from another seller. We can determine how much demand is left for a particular firm at each possible price using the market demand curve and the supply curve for all other firms in
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