Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Chapter 12, Problem 20APA
(a)
To determine
How the advance in TV technology will influence the markets for streaming services, and Blu-ray discs and players in the short run and in the long run and illustrate it.
(b)
To determine
How the market for streaming services, and the Blu-ray discs and players will influence the market for 4K HD TVs.
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DBS Farms is a producer and retailer of farm products. DBS main products are Mangoes, Pawpaw and Pineapples. The current price of the Mangoes per Kilogram is GHS 50, the Pawpaw/Kg is GHS 80 and the Pineapple is GHS 40. This year the DBS Farms sold 10,000 kgs of Mangoes, 20,000 kgs of Pawpaw and 1 million kgs of Pineapples. In an attempt to improve revenue, the managers of the firm have decided to increase all prices by 10%. Market research has suggested that the price elasticity of demand for each product is: Mangoes: -1.5; Pawpaw: -2.5; Pineapples: -0.6. You have been asked to evaluate the planned price increases. a. Comment on the planned price changes. b. Would a 10% price reduction have been better for some or all of the products?
Similar to previous health pandemics, at the outset of the COVID-19 pandemic the demand for protective goods such as masks, gloves and sanitisers increased markedly around the globe resulting in retailers making super profits. In addition, the sales of personal protective equipment (PPE), cleaning and fumigation contractors surged up as their demand increased. According to data released by Monfils LLC, an international research firm based in the Italy, face mask sales grew by a year-on-year increase of 400% in April 2020. However, in December of 2020, the price of face masks fully retraced back to its pre-COVID-19 level.1.1 With the aid of diagrams, evaluate the change in the market structure between March 2020 and December 2020 as well as other factors that could have influenced the price increase of face masks in March 2020.1.2 Critically discuss how price elasticity of demand of face masks was affected, including its impact on revenue at the outset of the pandemic relative to later…
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Chapter 12 Solutions
Macroeconomics
Ch. 12.1 - Prob. 1RQCh. 12.1 - Prob. 2RQCh. 12.1 - Prob. 3RQCh. 12.1 - Prob. 4RQCh. 12.2 - Prob. 1RQCh. 12.2 - Prob. 2RQCh. 12.2 - Prob. 3RQCh. 12.3 - Prob. 1RQCh. 12.3 - Prob. 2RQCh. 12.3 - Prob. 3RQ
Ch. 12.4 - Prob. 1RQCh. 12.4 - Prob. 2RQCh. 12.5 - Prob. 1RQCh. 12.5 - Prob. 2RQCh. 12.5 - Prob. 3RQCh. 12.6 - Prob. 1RQCh. 12.6 - Prob. 2RQCh. 12.6 - Prob. 3RQCh. 12.6 - Prob. 4RQCh. 12 - Prob. 1SPACh. 12 - Prob. 2SPACh. 12 - Prob. 3SPACh. 12 - Prob. 4SPACh. 12 - Prob. 5SPACh. 12 - Prob. 6SPACh. 12 - Prob. 7SPACh. 12 - Prob. 8SPACh. 12 - Prob. 9SPACh. 12 - Prob. 10APACh. 12 - Prob. 11APACh. 12 - Prob. 12APACh. 12 - Prob. 13APACh. 12 - Prob. 14APACh. 12 - Prob. 15APACh. 12 - Prob. 16APACh. 12 - Prob. 17APACh. 12 - Prob. 18APACh. 12 - Prob. 19APACh. 12 - Prob. 20APACh. 12 - Prob. 21APACh. 12 - Prob. 22APACh. 12 - Prob. 23APA
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