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PART A: “There is constantly a shift in supply and demand curves and markets are never at equilibrium. As a result, there is no purpose of the concept of equilibrium.” Do you agree/disagree with this statement. PART B: Resorts give discounts to individuals who book in advance and stay over a weekend. Individuals who book at the last minute and do not stay over a weekend usually pay full price. Explain the difference between the two groups’ demand for resorts and the resorts’ pricing decisions? Ensure that you define any key terms used in your discussion.

Price discrimination is the practice of selling the same good at more than one price when the price differences are not justified by cost differences. Evaluate the following statement: "Price discrimination is possible only if no one can easily resell the good." None of these choices True, because this prevents the low-price segment of the market from reselling to the high-price segment False, because it doesn't matter whether consumers can resell the good or not False, because allowing for resale is more efficient Which of the following kinds of price discrimination occurs when each customer in a single market is charged the maximum price he or she is willing to pay? Second-degree price discrimination Third-degree price discrimination This is not an example of price discrimination Perfect price discrimination

George has been selling 7,000 T-shirts per month for $7.00. When he increased the price to $9.00, he sold only 6,000 T-shirts. Which of the following best approximates the price elasticity of demand? -0.6769   -0.6154   -0.3077   -0.5538     Suppose George's marginal cost is $4 per shirt. Before the price change, George's initial price markup over marginal cost was approximately    . George's desired markup is    .   Since George's initial markup, or actual margin, was   than his desired margin, raising the price was

Fill in the following table with degrees of competition, the price elasticity of demand and the implications of the degree of competition and the price elasticity on the price of the product at each stage of the product life cycle. Stages of the product life cycle Introduction Growth Maturity Decline Degree of competition Price elasticity Price of the product

What is price discrimination?  Explain how the theories of elasticity, if used, can help suppliers make decisions on product prices.

The elasticity of Supply is an important concept in Microeconomics as it relates to a business's ability to adjust its production and its production facility in response to market developments. Think of some examples of products and businesses that would have various degrees of Elasticity of Supply and share them here.  For example, what would be the Elasticity of Supply for an original piece of art? What does this imply for the adjustment in this market to a change in Demand?  How would you describe the Elasticity of Supply for a product such as peaches, plums, and other tree fruit? Consider first a brief period, such as weeks, and next a much longer period such as five years. How does the time horizon influence market adjustment when there is a change in Demand?

Take a look at the three factors that affect elasticity in section 6.3, on pages, 205-207. - Availability of Substitutes - Percentage of Consumer's Budget - Time Period of Adjustment Explain how each of the factors would or would not affect the price elasticity of demand for a good or service that your company (or a company for which you have an interest) produces?

Calculating Price Elasticity

In dynamic pricing environment where prices change regularly the decision to open or close different price point is based one :  variable cost  demand forecast  scheduling  breaken point  supply forrca

QUESTION 1 Firms A, B, and C were all selling 1,000 cups of coffee per day at $3.50 per cup, but in the following week they all changed their prices. This gave their managers some information about the elasticity of demand in their local market, though they have to be careful to recognize that other factors might also have affected demand. The table below shows the change in sales as a result of their new prices; they made no other changes. Complete the table by calculating the revenue, cost of goods sold (COGS), and gross margin for each firm. Firm Baseline A B C Price per Cup $3.50 $3.00 $4.00 $2.50 Cups Sold 1,000 1,140 830 1,500 Revenue $3,500 $0 0 0 COGS @ $0.35 per Cup $350 $0 $0 $0 Gross Margin $3,150 $0 $0 $0 Coffee prices are going up, and Firm B is trying to decide whether to pass on to customers a cost increase of 10¢ per cup-to $0.45 per cup. What will be their new gross margin if they don't pass on the cost increase and demand remains unchanged? $ 0 What will be their new…

Before economic reforms were implemented in the countries of Eastern Europe, regulation held the price of bread substantially below equilibrium. When reforms were implemented, prices were deregulated and they rose dramatically. As a result, the quantity demanded for bread dramatically fell and the quantity supplied for supplied rose sharply. Change in Demand Increase Decrease Did not Change Indeterminate Change in Supply Increase Decrease Did not Change Indeterminate

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The federal government imposes a $5 tax per game on the manufacturers of the electronic games. Graphically show what will happen.   Make sure you label the initial P and Q and the resulting P and Q.Label axes clearly. What happens to the equilibrium price of electronic games?  What happens to the equilibrium quantity?

According to the CEO of Turing Pharmaceuticals, what would he have done to the price of Daraprim if he could do things all over again? 1. increase the price even more 2. lower the price so that more people could afford it 3. wait to see what the competitor did 4. ask the government for a tax exemption

What is most likely the reason?

explain how and when demand and supply have changed (shifted) for online shopping. Provide examples of historical or current events where market demand and market supply for online shopping have shifted significantly, and state the factors that you believe have caused the shift in supply and/or in demand.

The data in the table shows the price and quantity supplied for exercise balls. Using the Midpoint Method, what is the price elasticity of supply from point C to point D? Note: Remember to take the absolute value of the result and round to the nearest hundredth. If using a calculator, rounding should be done at the end of your calculation. Provide your answer below: Point Price $30 A B C D E $32 834 $3 $38 Quantity 10,000 10, 100 10,200 10,300 10,040

Question # 4 As the lockdown around the traveling destinations of the world began to ease and there is an increase in the demand for tourism services. Following is the demand schedule for the two traveling destinations Turkey and Malaysia. Price Quantity Demanded Turkey Quantity Demanded Malaysia 150,000 65,000 50,000 300,000 48,000 55,500 450,000 30,000 58,000 Using the midpoint formula calculate the price elasticity of demand when price increased from 150,000 to 300,000. Also explain and illustrates if the demand is elastic or inelastic. Find the cross-price elasticity of demand if the price of turkey package increased from 300,000 to 450,000. Explain if the two goods in question are substitute and complements. With the reference to your answer in part (a), suppose you are asked as a manager of traveling company to ensure maximum revenue generation for your firm in Turkey. Justify how you would increase the firm revenues.

Refer to Example 10.3 - 'Markup Pricing: Supermarkets to Designer Jeans' a. Why do small convenience stores which are often open 24-7 typically charge higher prices than supermarkets?  b. Why are designer label jeans typically more expensive than 'mass-market' jeans?

In the market for alcoholic beverages, a business called Drive-thru Bottle Shop offers a variety of different bottled wines to their customers. They stock many brands, some being very well-known, with others less well known. Answer the following questions:a. If a wine has significant brand recognition and customer loyalty, then the point price elasticity of demand at a given price for this wine would elastic than the point price elasticity be of demand of a similar wine where the wine maker has little brand recognition and customer loyal, ceteris paribus. Type L for Less, M for More or E for Equally. b. The demand for a particular wine sees customers purchase 6,000 bottles of wine when the price is $7.99 per bottle, and only 5,000 bottles when the price was increased to $8.49 by the Drive-thru Bottle Shop management. What is the price elasticity of demand using the mid-point formula? Answer to the nearest two decimal places. C. Assume the Drive-thru Bottle Shop is trying to maximise…