Eco 365 Week 6 Assignment

a. Say we are already suffering the long-run consequences of the policies of the remote or recent past.

Elasticity of demand is the relationship between the demands for a product with respect to its price. Generally, when the demand for a product is high, the price of the product decreases. When demand decreases, prices tend to climb. Products that exhibit the characteristics of elasticity of demand are usually cars, appliances and other luxury items. Items such as clothing, medicine and food are considered to be necessities. Essential items usually possess inelasticity of demand. When this occurs prices do not change significantly.

Explain two (2) ways in which you applied the use of marginal cost and benefit to your decision to pursue a college degree.

Elastic demand or “elasticity means the extent to which the quantity demanded changes when there’s a change in the price of a good” (Thinkwell, 2013). A product is considered elastic when the change in price increases the percentage change in quantity demanded. When

During week one meet with staff and providers to discuss the research that supports my change project. Also, randomly talking with patients to get their input and what they feel would meet their learning needs. Meeting with the stakeholders from my clinic. Reaching out to the IT department and meeting with the finance department.

I will always try to communicate with others so that I can solve problems and help people to the best of my abilities. Communicating helps for me to connect to the other players problems or situation. If someone needs help to report someone, I will do it straight away and help him get passed his or hers problem. Sometimes, the players will not be getting help from the staff members. I would love to reduce that problem and will answer there questions safe and soundly no matter who it is.

Thank you for coming in last week. I have looked at your portfolio, and have some initial observations. These are not specific recommendations, but rather investment issues to think about, based on your specific situation.

Why is it that a profit maximizing businessman would always raise prices when facing an inelastic demand curve but might or might not raise price when facing an elastic demand curve? Explain and justify your answers in detail.

When I started perusing chapter six, Understanding Key Cost Connections, I as of now had thought that the costing of products was necessary keeping in mind the end goal to make a benefit. Be that as it may, I had just ever considered expense from the viewpoint of a client and as a little entrepreneur with the little learning of bookkeeping. I enjoyed Warren Smorgasbord's quote, "Expense is the thing that you pay, quality is the thing that you get". As a client, I consistently grumble about the expense of things however I am set up to pay more for a few items since I get more esteem and in light of moral reasons. Case in point, I will pay more for quality shoes and morally angled fish. Eighteen years back, as a first-time little entrepreneur,

Therefore the demand for the low-calorie microwavable food is inelastic. An increase in the price of the food will cause a decrease in quantity demanded. Income elasticity of the goods calculated is 1.08, which means that the good selected is a luxury good. Changes in income could also affect the demand of this product. The cross price elasticity is 0.005. Therefore the two goods can be considered as neutral goods. The advertisement elasticity is 0.08. This indicates that advertisement has an important impact on the sales of the product. Lastly, the microwave ovens elasticity is 0.05. This is a direct correlation as sales of microwave ovens increase; demand for of low-calorie microwavable food also increases.

E., & Gould, J. P., 1966). Furthermore, the members are price takers and do not have the power to influence price changes. We now understand that perfectly competitive markets are very rare and that in reality our product exists in a different type of market. The four types of markets are: Monopoly, Oligopoly, Monopolistic competition, and perfect competition. Our company has gained enough power in the market to influence price and allow it to choose its own optimal price. This means that establishing an equilibrium where QD = QS does not necessarily apply. Perhaps our company has developed an innovation that makes the quality of our microwave meal much better than our competitors or we have developed a process than drastically lowers the cost of processing the ingredients for our product. Regardless of the reason, our company now has a competitive advantage and we must take advantage of it in order to become dominant in our industry.

Additionally, Sally is withdrawing $34,000 from her savings account that pays 4% interest/year to purchase the furniture and equipment; she will quit her current job that pays $25,000 per year. She expects total revenues from the new business in the first year to be $70,000. Calculate the following:

Elasticity is a measure of the responsiveness of demand to changes in the price of a good or service. In the case of Steam Scot, when the price rises from 4 to 5, demand falls from 60,000 to 40,000 units. The original equilibrium market price of 4 pounds resulted in demand of 60,000 units and this generated revenue of 240,000 pounds. When the prices increased to 5 pounds the resulting demand is 40,000 units, and this generates total revenue of 200,000 pounds. When market price changes from 4 pounds to 5 pounds 40,000 pounds of revenue are lost in this indicates an elastic price elasticity of demand.

How we calculate our prices will affect the impact we will have for sales and marketing. We will have to look at the elasticity demand for our cable service because lowering cost will generate more total revenues (Kotler & Keller, 2012, pg.392). According

Elasticity in the demand can be defined as how the consumers respond to a change in the price of an object. A substitute is a good that can be used in exchange of another good. The iPhone entered the cell phone market. This market has multiple brands, types, and pluses in the cell phones that make them adapt to the customer’s needs. There is a phone waiting for any type of consumer, with any kind of purchasing power, or any kind of need. Because the iPhone was incurring into this market filled with substitutes, it was going to face an elastic demand. Although the