Week 2 : Demand‚ Supply and Elasticity - Quiz Top of Form Time Remaining: 1. (TCO 2) A demand curve (Points : 1) shows the relationship between price and quantity supplied. indicates the quantity demanded at each price in a series of prices. graphs as an upsloping line. shows the relationship between income and spending. 2. (TCO 2) Which of the following will not cause the demand for product K to change? (Points : 1) A change in
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(1) Identify who formalized the concept of elasticity and explain the concept. The economist Alfred Marshall formalized the concept of elasticity; he introduced this concept in the law of supply and demand. The actual concept is a little confusing to me‚ what I get from the concept is that we use elasticity when we want to see how one thing changes when we change something else. How does demand for a good change when we change its price? How does the demand for a good change when the price of
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State the factors affecting the price elasticity of demand? The type of product will affect the price elasticity of demand i.e. a necessity such as petrol will have a inelastic demand as it is a must have for consumers so a change in price will cause only a minor change in price whereas if a product is not a necessity for consumers it will have an elastic demand meaning a small change in price could lead to a greater change in quantity demanded The proportion of the consumers income spent on a product
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the life only exist in there. The island name is ”Gulangyu” which is translated by Chinese. The first thing I want to introduce is store there. There are many kinds of store with their particular feeling. At first‚ I want to describe a milk tea store which is named by a cat called “Zhang Sanfeng”. Even thought we can not see that cat any more‚ people will still go there to have a rest. When you walk into the store‚ you will find a neat row of white chair‚ which the cat’s photo printed on.
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formula to calculate the critical Price Elasticity of demand which is just sufficient to maintain the contribution to overheads and profits. This will be greater than that required to maintain revenue. A common issue in business and in business studies is whether a firm should change the prices at which products are offered. The calculations begin with estimates of the reaction of customers to the new prices. This reaction is represented as Price Elasticity of Demand (PED)‚ the ratio of the proportionate
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becomes too expensive. For example‚ if Capri Sun juice pouches are cheaper than Kool Aid juice pouches‚ you may buy the Capri Suns instead‚ or if margarine is cheaper than butter you may buy the margarine. Define “Price Elasticity of Demand.” Give an example. "Price Elasticity of Demand" is the quantity demanded of a product when the price increases of a product. Most the time the number is negative since normally the demand does down on a product with increase of price. An example is gas prices
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If the cross-price elasticity between ketchup and hamburgers is -2.5‚ a 2 percent increase in the price of ketchup will lead to a: A. 5 percent drop in quantity demanded of ketchup. B. 5 percent drop in quantity demanded of hamburgers. C. 5 percent increase in quantity
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Since the discovery of Tea in 2737 B.C in China‚ and after the Europeans learnt about tea in 1589‚ drinking tea has spread throughout the world and today it is a widely consumed beverage. Tea production in Sri Lanka is of high importance to the Sri Lankan economy and the world market. Sri Lanka is the world’s fourth largest producer of tea and the industry is one of the country’s main sources of foreign exchange and a significant source of income for labourers‚ with tea accounting for 15% of the
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Introduction Tea is the second most popular drink in the world‚ after water. For a number of developing countries it is also an important commodity in terms of jobs and export earnings. Tea production is labour intensive and the industry provides jobs in remote rural areas. Millions of livelihoods around the world depend on the production of tea. For a number of tea exporting countries‚ including world champion exporters Kenya and Sri Lanka‚ tea is a critical source of foreign income. However‚ as
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Marketing Plan: Lipton Ice Tea Industry Analysis In 2005‚ the tea industry reached the $1.7 billion category and it is expected to continue growing indefinitely (Mintel 2005). Market analysts believe the tea industry will continue to boom and is not expected to reach saturation level in the near future. The favorable movement in the tea industry can be attributed to two major factors: a) consumers need for convenience and time-saving services; and b) the positive press given to tea. American lifestyle and
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