Assignment 1 - Economics The demand and supply schedules for gum are given in the table. a. Draw a graph of the gum market‚ label the axes and the curves‚ and mark in the equilibrium price and quantity. b. Suppose that the price of gum is 70¢ a pack. Describe the situation in the gum market and explain how the price adjusts. c. Suppose that the price of gum is 30¢ a pack. Describe the situation in the gum market and explain how the price adjusts. d. A fire destroys some factories that produce
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INTRODUCTION Nowadays‚ the demand of air travelling is increasing quickly leads to the appearance of many low cost carriers which focus on popular class. This had made huge changes in the original service and pricing strategy. Easyjet is one of the most successful low-fare airlines in the World‚ which has a noticeable measure of pricing it product. “Price” is one of the “four Ps” in marketing mix but its role is different from the other Ps: “promotion”‚ “product” and “place”. By studying about
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Which is better? Bottled water or tap water? Well to answer that question I decided to do an experiment. In general there are many reasons why you should not drink bottled water. Bottled water uses many resources and creates huge amounts of waste. It is estimated that it takes over 25 million gallons of petroleum to produce 1 billion plastic water bottles. To put that into perspective‚ Americans consume about 50 billion plastic water bottles every year‚ and that is not counting soda bottles! It also
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The market supply and demand curve above shows the milk price support problem. In order to solve the milk surpluses in the market‚ the government should take the steps to increase the market demand to the milk products by exploring overseas markets. For instance‚ the government should export the milk surpluses abroad. This would cut the cost of storage for milk products and encourages the local dairy farmers continue in dairy business. b. The small dairy farmers would prefer the proposal 4
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different b) will want to trade if they are on the contract curve c) will not want to trade if their consumption bundles are not Pareto-efficient d) will only want to trade if they are not at their endowment e) may want to trade if the price ratio is not equal to one answer a If MRSA is not equal to MRSB‚ the two consumers will be able to arrange a mutually beneficial trade. Mutually beneficial trade will not occur only when the allocation of resources among A and B is already efficient
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But It’s Just a Bottle of Water… by Lindsey May‚ Jessica Kotke‚ and Charles R. Bomar Department of Biology University of Wisconsin—Stout Part I—Moving In On the first Mega-Store trip on move-in day at Midwest University‚ Sally and her mom picked up groceries for the dorm. Sally’s mom insisted on getting bottled water for her daughter because of her firm belief that bottled water was safer and cleaner than tap water. Back at the dorm‚ however‚ Sally’s new roommate‚ Jane‚ a sophomore Environmental
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The controversy concerning bottled water and tap water has been around ever since I can remember. Think about it‚ if you were walking down the street and someone offered you a cup of water from one hand and a bottle in the other‚ which would you take? Which is safer? Which is more portable? Which is more tasteful? Here are three main reasons why bottled water is not as bad as you think. Not so surprisingly‚ bottled water is one of the first things to clear the shelves in lieu of any type of natural
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February 11‚ 2011 But It’s Just Bottled Water Part I-Moving In 1. Should Sally’s mother buy the bottled water? Why or why not? There were many facts provided in this paper to support why people should not buy bottled water. They included arguments against the quality of bottled water‚ information on the harmful effects of bottled water on the environment‚ and the negative implications of water extraction. Sally’s mother should not buy the bottled water at the Mega-Store. She had
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system of a particular country is the way in which its people‚ businesses and government make choices. Demand is the amount of a product consumers are willing and able to purchase at any given time. However‚ supply is the amount of a product that is available at any given time. The following diagram shows the relationship that demand has with supply: The above diagram shows that where the demand and supply intersects‚ indicates the quantity which suppliers wish to market equals the quantity which
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Week I Quiz Results/Answers ECO561 1. Revenue increases when * producer surplus increases 2. An increase in the price of an inelastic good * increases revenues 3. Price elasticity of Demand increases when * people become less price sensitive over time 4. The purpose of a market in a market system is to * bring buyers and sellers into contact 5. By specializing in the production of one good‚ a company is able to benefit from economies of scale which increases its revenue. Which
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