Answer all questions. Extract 1: Coffee prices on the rise Coffee prices hit a record 14-year high this month‚ and it’s only a matter of time before coffee lovers will have to pay more in stores and coffee shops. A series of bad news has affected the market for coffee – bad weather in South America is threatening crops; Brazil and Vietnam are talking about hoarding their stocks; and US stockpiles are reportedly at 10-year lows. Moreover‚ the current behavior of prices reflects uncertainties concerning
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is NOT a factor of production? a) land b) labour * c) a financial asset d) capital Q5 An economic model indicates that a rise in income will result in consumers purchasing fewer fast food meals‚ ceteris paribus. “Ceteris paribus” means a) other relevant factors like consumer incomes must be held constant b) consumers need for food remains the same regardless of price * c) the theory is widely accepted but cannot be accurately tested
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1a) Price elasticity of demand (PED) measures the degree of responsiveness of the quantity demanded of a good to a given change in price of the good itself‚ ceteris paribus. It is found by taking the percentage change in quantity demanded of good X divided by the percentage change in the price of good X. The numerical value of the price elasticity of demand is always negative due to the inverse relationship between quantity demanded and price as stated in the law of demand. When we interpret
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able to purchase at all possible price in a given time of period. 2. The law of demand is ‘as the price of a product falls‚ the quantity demanded for the product will usually increase‚ ceteris paribus.’ a. Shows a relationship between price and the quantity demanded for a product b. Follows term ceteris paribus (all other things being equal) in the graph bellow‚ the only changing determinant is the price‚ assuming that all the non price determinants of demand to be unchanged
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Executive Summary This research provides statistical analysis for gross monthly sales in 60 stores using five key measures within a 10km vicinity: number of competitors‚ population in ‘000’s‚ average population income‚ average number of cars owned by households‚ and median age of dwellings. These quantitative variables are the key determinants‚ which will provide substance for descriptive statistics and the multiple linear regression model. This research reports mainly on statistical analysis
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IN THIS CHAPTER YOU WILL 4 THE MARKET FORCES OF S U P P LY A N D D E M A N D Chapter Over view Learn what a competitive market is Examine what determines the demand for a good in a competitive market Examine what determines the supply of a good in a competitive market CONTEXT AND PURPOSE Chapter 4 is the first chapter in a three-chapter sequence that deals with supply and demand and how markets work. Chapter 4 shows how supply and demand for a good determines both the quantity produced
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Chapter 21: International Finance Multiple Choice Questions EXCHANGE RATES: THE GLOBAL LINK 1. The exchange rate is the: A) Opportunity cost at which goods are produced domestically. B) Balance-of-trade ratio of one country to another. C) Price of one country’s currency expressed in terms of another country’s currency. D) Amount of currency that can be purchased with 1 ounce of gold. Answer: C Type: Complex Understanding Page: 437 2. An exchange rate is: A) Always fixed
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gasoline‚ because you need to buy it regardless of the price. This relationship holds true as long as "all other things remain equal." That part is so important that economists use a Latin term to describe it -- ceteris paribus. The "all other things" that need to be equal under ceteris paribus are the other determinants of demand. In addition to price‚ they are prices of related goods or services‚ income‚ tastes or preferences‚ and expectations. For aggregate demand‚ the number of buyers in the market
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H1/H2 Scarcity‚ Choice & Opportunity Costs Ace Responses Scarcity‚ Choice & Opportunity Costs H1/H2 Scarcity‚ Choice & Opportunity Costs Ace Responses Scarcity‚ Choice & Opportunity Costs - Table of Contents S/No Questions Question Type 1 : Essay Type Questions for Resource Allocation 1 Explain what is meant by the basic problem of scarcity [10] Question Type 2 : Opportunity Costs 1 You have just obtained your GCE A-Level results. You qualify to enter the University. If you study in the
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CHAPTER THREE DEMAND‚ SUPPLY AND EQUILIBRIUM DEMAND Definition of demand Demand refers to the quantity of a commodity1 that consumers are willing and able to purchase at any given price over some given period of time. The quantity demanded is the amount of a product people are willing to buy at a certain price; the relationship between price and quantity demanded is known as the demand relationship. Three important aspects that must be mentioned in the definition of demand are 1. Quantity
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