Microeconomics

Price Elasticity of Supply * Price Elasticity of Supply: * The degree of price elasticity of supply depends on how easily - and therefore quickly - producers can shift resources between alternative uses. Unlike PED, there is no Total Revenue Test for Price Elasticity of Supply. * Because there is a direct relationship between Price & Total revenue, they always move together. DETERMINANT OF PRICE ELASTICITY OF SUPPLY: TIME! THREE PERIODS: Market period--> short run --> long

Discuss And Illustrate The Economic Justification For Establishing A Warehouse Storage has always been an important aspect of economic development. For manufacturers, strategic warehousing offered a way to reduce holding or dwell time of materials and parts. On the outbound side of manufacturing, warehouses can be used to create product assortments for customer shipment. An important charge in warehousing is maximum flexibility. Ideally a warehouse will simultaneously provide economic and service

"The social economy beyond the local: Developmental possibilities, Problems and policy considerations" CED Contents Introduction 2 Social Economy beyond the Local and the CED role in the Economy 3 Social Economy 3 Social Concerns about the Economy 4 Community Economic Development (CED) 5 Historical Perspective of Community Economic Development (CED) 6 Approaches to Community Economic Development (CED) 7 Theories of Economic Development 8 Neoclassical theory 9 Linear stages

Theory by Root 1. Product Factors According to (Root, 1998), companies with highly differentiated products has an advantage over its competitors on how it choose its pricing strategies. Even if the price is high, there will still be demand for it. However, if the product is weakly differentiated, the company will have to resort to setting a lower price for the product to sustain interest from the market (Root, 1998). In the example of Apple’s IPhone, the product is highly distinctive so they are

Companies do not have the freedom to merge and acquire as they please do. All have to meet the requirements and essentially be approved by regulatory bodies. In the context of regulations, antitrust laws and security laws are commonly referred to by regulator to determine whether a merger or acquisition should be allowed or rejected. Antitrust laws prohibit mergers and acquisitions that impede competition. The point is very simple where antitrust is referred to as competition. The goal is to increase

The NFL uses a diversified pricing strategy making it possible for fans with different budgets to attend games. The National Football League offers club seating with cushion seats, extended leg room and gourmet food for those customers willing to pay the premium. While offering normal seating with traditional food stands for those customers who aren't able to afford such a premium. This is very similar to other professional sports companies, as most have them adopted a similar strategy due to its

Hunter-gatherers consume less energy per capita per year than any other group of human beings. Yet when you come to examine it the original affluent society was none other than the hunter's - in which all the people's material wants were easily satisfied. To accept that hunters are affluent is therefore to recognise that the present human condition of man slaving to bridge the gap between his unlimited wants and his insufficient means is a tragedy of modern times. There are two possible courses

Another theory, which explains the gains from trade, is specific-factors model. It is similar to the Ricardian Model, but it is more complicated since it takes into account two more factors of production: land and capital. This model assumes there is two-country world, in which only two goods are traded. It is assumed that labour and capital are used in the manufacturing industry. Moreover, labour and land are used in the agricultural industry. Specific-factors model is short run model, because the

Does a reduction in trade barriers cause a country to move closer to its production possibilities curve or does it cause the production possibilities curve to shift outward? Reduction in trade barriers causes a country's production possibilities curve to move outward because of limited resources. Lets the Europe for an example, It has a population is close to 731 million and it is rich in skilled labor. It has big economies such as France, England and Germany but it does not have much raw materials

Since Blinkie’s Donut Emporium offers several different products, we decided to calculate the price elasticity of demand for their main product sold; donuts. Elasticity is determined by the percentage change in quantity demanded divided by the percent of change in the product price. The initial quantity demanded, being 5,000 sales a month later turned into 4,500 sales a month in response to the price change from $1 to $1.50. A $.50 cent increase in price led to a decrease in total quantity of donuts