Romanian Government

Museums have long served a purpose as cultural staples. For every museum, big and small, careful consideration is used in selecting its contents. When securing new items for a museum, it is most important to consider public appeal, educational value, and cost-effectiveness.

“The Cross-price elasticity of demand measures the rate of response of quantity demanded of one good, due to a price change of another good” (Economics.about.com,

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

The first factor is the availability of substitute goods, which are goods that can be utilized instead of the original good. If there is a substitute good available, the demand is likely to change more because people can buy different products. On the contrary, if an item has few substitute goods, it may not gain or lose customers. In Canada, Nike shoes have lots of substitute goods like Adidas

Elasticity of demand is gauged by the percentage of change in demand when the price of an item varies. If the change in the quantity demanded is greater than 1 the demand is elastic.

In Steven Lubar’s book, Inside the Lost Museum: Curating, Past and Present, the recurring idea that museums are “more than the sum of their parts” plays a critical role in the overall argument (329). Lubar notes many aspects that make up a museum, the collection, for example is an essential part of any museum, but the community, as well as the experiences of the patrons create a lasting museum experience. Additionally, Lubar aptly utilizes real-world examples, contemporary and historical, highlighting the work of individuals in museums and establishing a connection between past and current events. Central to this narrative is the example of the lost Jenks Museum. Lubar uses this museum to argue that museums of the past can educate museum goers

A negative cross elasticity of demand in complementary goods means that the increase in price of one good, an example being potato chips, will decrease the demand for the complementary product that goes with it, the dip.

Elasticity of demand is a variation in price depending on the demand of a good or service. Items like vehicles, appliances, jewelry, and electronics will sell less at full price than they do when there is a drop in price. When producers and retailers drop the price enough for the market to take notice, people react in deciding to purchase the good or service. This reaction and sensitivity to the market is known as Elastic demand.

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.

There are opportunities though, and they are good opportunities. I was able to identify three that they should pay attention to and really hit hard on. In today’s economy, people aren’t wanting to spend a lot of money. The recession is making people be a lot more conscious about money. Good news, the museum is free. If marketed properly, this could be a huge way to gain new visitors. Plus, art museums have sophisticated connotations that make people feel smart when they go to them. What better way to spend the day than to go somewhere that is free and feel sophisticated? Another opportunity is that new exhibits could attract younger demographics, pending on the exhibit. This could be tricky though because they want to attract everyone, but older crowds are interested in things that younger generations aren’t. They have to be able to balance the attractions so everyone can relate to it and want to view it.

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.

Elasticity of demand represented as “Ed” is defined as a “measure of the response of a consumer to a change in price on the quantity demanded of a good” (McConnell, 2012). Determinants for elasticity of demand would include the substitutability of a good, proportion of a consumer 's income spent on a good, the nature of the necessity of a good and the time a purchase is under consideration by the consumer. Furthermore, elasticity of demand is calculated with this formula:

When the price of a good rises the quality demanded falls, if we think about how much does it falls. To figure out by how much it falls we must calculate the price elasticity of demand which is calculate by how responsive demand is to rise in price. Also, the price elasticity of supply measures the responsiveness of quantity supplied to a change in price.

According to the American Alliance of Museums, community engagement in museums includes the use of this facility as “a center where people gather to meet and converse and an active, visible player in civic life, a safe haven, and a trusted incubator of change” (Long 141). Different museums

Elasticity of demand is shown when the demands for a service or goods vary according to the price. Cross-price elasticity is shown by a change in the demand for an item relative to the change in the price of another. For substitutes, when there is a price increase of an item, there is an increase in the demand for another item. When viewing complements, if there is an increase in the price of an item, the demand for another item decreases. Income elasticity is shown when there is a change in the demand for a good relative to a change in income. This concept is shown in how people will change their spending habits when their income levels change. For