...The Giffen Indifference By: Brett Dowling October 20, 2012 100 100 Price ($) Price ($) Indifference Map: Bananas vs. Everything Else Indifference Map: Bananas vs. Everything Else Qev Qev Demand Graph: Bananas Demand Graph: Bananas Qb Qb 60 60 50 50 40 40 20 20 12 12 5 5 2 2 Units Units 12 12 2 2 5 5 5 5 10 10 20 20 In order to understand and create a Giffen Good indifference curve, one first must examine the elements Relating a Demand Schedule to an Indifference Curve This demand graph depicts a survey relating the price of Bananas to the number of Bananas the sample would be willing to buy at that price. From this demand curve, we are able to create an indifference curve showing the maximizing relationships between the quantity of bananas we could buy (Qb) and the quantity of everything else we could buy (Qev), assuming one unit of everything else costs $1 and the budget is $100. How does this happen? When Qb = 2, the consumer would be willing to pay $20 for each banana, according to the demand curve. That means that $60 will be left over for everything else. Hence, a coordinate on the curve A of (2, 60) is formed as a point which maximized utility within the budget constraint. If the price of bananas were to be reduced to $10, then according to the demand curve, the consumer would be willing to buy 5, or $50 worth of bananas, and therefore $50 of everything else. This creates a new indifference curve, B, because the price change...
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...Song Title: Drink to That All Night Singer: Jerrod Niemann Album: High Noon Lyrics Pullin' up now and the parkin lot’s full Gonna ride that cow with a Dallas bull Everybody in the ATL is comin DJs got those speakers thumpin Got a black ford not a white mercedes Walkin in the front door checkin out the ladies My buddy says hey boys I'm buyin The hottest girl in here's givin me the eye and Everybody knows, its gonna be one of those I can drink to that all night That's the stuff I like That's the kind of party makes you throw your hands up high Bout to tie one on talkin gone gone gone Turnin all the wrongs into right I can drink to that all night Workin on the sweet thing sittin on a bar stool Doin shots of Jack girl gonna take it old school Singin hell yeah to every song their playin Do ya wanna dance? Baby I'm just sayin Everybody knows, its gonna be one of those I can drink to that all night That's the stuff I like That's the kind of party makes you throw your hands up high Bout to tie one on talkin gone gone gone Turnin all the wrongs into right I can drink to that all night I can drink to that all night Take your cup fill it up You can't raise it high enough Take your cup fill it up You can't raise it high enough Everybody knows, its gonna be one of those I can drink to that all night That's the stuff I like That's the kind of party makes you throw your hands up I can drink to that all night That's the stuff I like ...
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...Economics November 25, 2013 Monopoly For does who did not know, google is a monopoly. A monopoly is A situation in which a single company or group owns all or nearly all of the market for a given type of product or service. They are usually the only company with no competition which leads to high prices and inferior goods. Google is now taking advantage of its monopoly position, searching to charge companies using placement in Google Shopping. This would cause high prices for consumers. According to Consumer Watch Dogs, they say ““Google used classic monopolistic tactics to largely clear the field of competitors and then changed its business model to maximize its profits by charging merchants for placement,” said John M. Simpson, Consumer Watchdog’s Privacy Project Director. “Merchants then charge consumers more for the product to cover their payment to Google.”In their studies they compared prices on the same item on 3 competing shopping engines. These 3 were ; Shopzilla, Pricegrabber, and Nextag. Checking prices for 14 items this month, Consumer Watchdog found Google listings as much as 67 percent higher. Some suggested that Google’s business tactics enabled by its monopoly position only damage competing services. Consumer Watchdog said Google hurts consumers in two ways. “Universal Search populates the top of the results page mainly with results from Google’s own services. This moves the Internet giant closer to an ecosystem where real consumer choice no longer...
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...WEEK ONE Homework. Answer all questions, a through f. On questions c, d, e and f show your math. If you do not show your math you do not receive points. The general demand function for a good, Good A, is… QD = 800 – 5*P + 0.02*M + 6*PR + 3*T + 5*PE + .4*N Where QD = quantity demanded of Good A per month P = the price of Good A M = average household income PR = the price of a related good, we’ll call it Good B T = a consumer taste index PE = the price consumers expect to pay next month for Good A N = the number of buyers in the market a. Is Good A a normal good or an inferior good? How do we know exactly? Good A is a normal good, and we know this because the sign on the coefficient in front of the income variable M is positive. (If the equation read QD = 800 – 5*P - 0.02*M … then it would be an inferior good.) The positive sign means that as income (M) increases, so too does the quantity demanded of this good. b. Are Good A and Good B complements or substitutes? How do we know exactly? Goods A and B are substitutes, and we know this because the sign on the coefficient in front of the “Price of Related Good” variable, PR, is positive. (If the equation read QD = 800 – 5*P + 0.02*M - 6*PR… then they would be complements.) The positive sign means that as the price of the OTHER good, Good B, increases the quantity demanded of this good, Good A, increases. This is because as the price of the other good, Good B, increases people are shifting...
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...price level. QUESTION TWO Inferior goods are those goods which when income increases the level of demand decreases and when income level decreases the demand for those commodities increases. While normal goods are those goods which when income increases the demand increases and as income falls the demand too decreases. Beans will be classified as inferior goods because an increase in income, the demand of beans decreases. Tuxedos will be classified as normal goods because an increase in income increases demand for the tuxedos. Used cars will be classified as inferior goods this is because as income of people increases, the demand for this cars decreases. Used clothing are classified as inferior goods because as income increases the demand for the used clothes decreases. Computers are classified under normal goods because an increase in income leads to an increase in demand for computers. Books reviewed in The New York Times are classified as inferior goods because as the income of people increases the demand falls while a decrease in the level of income leads to an increase of these books. Macaroni and cheese fall under the inferior goods as income increase leads to decrease in demand of Macaroni and cheese, while a fall in the level of income leads to the increase in demand of the same. Calculators are normal goods because when income increases the demand increases, then when income falls the level of too falls. Cigarettes are classified as inferior goods because an increase...
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...good rises, the real income of consumers will fall, as they will not be able to buy the same baskets of goods as before. Consumers can react to the change in one of two ways; if the good is a normal good they will buy less but if it is an inferior good, they will buy more. These changes in quantity demanded caused by a change in real income is known as the income effect of a price change. For a normal good, the income and substitution effect work in the same direction. A rise in price leads to a fall in quantity demanded because the relative price of the good has risen. It also leads to a fall in quantity demanded because there is a reduction in real income. So an increase in price leads to a decrease in quantity demanded and vice versa. For an inferior good, the income and substitution effect work in the opposite directions, an increase in price will lead to a fall in quantity demanded because the relative price of the good has risen. But it leads to a rise in quantity demanded because consumer’s real incomes have fallen. However the substitution effect outweighs the income effect because overall it is still true for an inferior good that a rise in price leads to an overall fall in quantity demanded. A giffen good is a special sort of inferior...
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...The Driving Force Behind Consumer Choice Choice is determined through thought, from direct influences verbally, physically, and visually. So, by means of these three ways, a person could be guided in a direction where other people use these ways to direct a decision to an individual. Consumers fall prey to the market tricks of the corporate world. This essay will examine the phenomenon on what exactly triggers the motive to consume. Later, an examination of the strategies used by companies will give a detailed image of what the driving force is in consumer choice. The public argues that they make decisions for themselves with no outside thought, this paper argues against that and how companies use action to change a response in their favor. Factors such as product quality, people sponsorships, brand recognition, and the media are the most significant methods on consumer purchasing habits. The overall argument that will be demonstrated through this paper is what exactly creates the idea in a person’s mind to purchase a product or service. Throughout the course of this literary discussion, there will be points made for and against for each of the previously stated tactics, but to clearly define this topic is an art of its own. One of the major contributors towards consumer decision is that of sponsorships. An endorsement can bring brand value and brand recognition to a company. With increased attention, there is more incentive in any regular people to recollect that information...
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...درآمدی معین و قیمت های مشخص می توان خریداری کرد. تعادل مصرف کننده (Consumer Equilibrium) تعادل مصرف کننده، به وضعیت یا موقعیتی گفته می شودکه مصرف کننده با میزان معینی از مصرف کالاها در هر دوره زمانی مشخص با توجه به قید بودجه خود به حداکثر مطلوبیت یا رضایتمندی دسترسی پیدا کند.تعادل مصرف کننده هنگامی برقرار می شود که منحنی بی تفاوتی و خط بودجه با یکدیگر مماس گردند. به عبارت دیگر شیب (یا قدرمطلق شیب) منحنی بی تفاوتی و خط بودجه برابر شوند. منحنی درآمد – مصرف (Income-Consume Curve ) منحنی درآمد مصرف، مکان هندسی نقاط تعادل مصرف کننده است، زمانی که نسبت قیمتها ثابت بماند و تنها درآمد دچار تغییر شود. منحنی انگل (Engle Curve) منحنی انگل، تابعی است که مقدار تعادلی خریداری شده از یک کالا را به سطح درآمد پولی ربط میدهد. کالای پست (Inferior Good) کالایی است که با افزایش درآمد میزان مصرف آن کالا کاهش می یابد. کالای نرمال (Normal Good) کالایی است که با افزایش درآمد میزان مصرف آن کالا افزایش می یابد. منحنی قیمت- مصرف (Price-Consume Curve) مکان هندسی نقاط تعادل مصرف کننده است، زمانی که نسبت قیمتها تغییر یافته و درامد بدون تغییر باقی می ماند. منحنی تقاضا (Demand Curve) ارتباط بین مقدار تقاضای کالای خاص توسط فرد و قیمت آن محصول، به شرط ثابت بودن سایر شرایط...
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...virtually negligible in C, but cost of gas is still important to answer the question as the health of your vehicle isn't as valuable anymore) A. Income effect - you have less money to do these things, no substitution has occurred. B. Income effect (definite) and substitution (plausible, not definite) - the relative price between cooking your own food and eating out may have changed since eating out you have to add a higher % of the cost of a meal to gas. C. income effect - you have less money to maintain your vehicle and the overall cost incurred from keeping your vehicle maintained has increased. D. substitution effect and income effect - public transportation is seen as an inferior good (as real income rises, its use decreases). Any decrease in income will produce more consumption of an inferior good. Also the relative cost has changed between two substitutible products therefore this is also a substitution effect. E. Substitution effect and income effect Same as D F. Substitution effect and income effect: poorly defined...did you take a vacation at home? Is away mean far away or even a few miles away? or just forego vacation altogether. I'll answer both ways; Vacation is a luxury good that will decrease as income goes down....
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...INTERNAL RESEARCH ASSIGNMENT Name of the candidate: ASIF EKBAL Enrolment no. : 08715903912 Course: MBA 1ST Yr. Batch: 2012 Subject: MANAGERIAL ECONOMICS Subject code: MS105 Topic of assignment: UNIT 1 Subject Teacher’s name: MS MAMTA RANI Research Assignment Q.1) “Inferior goods are not those goods in case of which the law of demand fails, inferior goods are those goods in case of which income effect is negative or these are the goods the demand for which decreases when income increases Yes, law of demand fails in case of GIFFIN GOODS. It is in the case of these goods that there is (A) Inverse relationship between income and demand (B) Positive relationship between price and demand.” In the light of above statement explains the following statement with the help of an example: “WHILE ALL GIFFIN GOODS ARE INFERIOR GOODS, ALL INFERIOR GOODS ARE NOT GIFFIN GOODS” Solution:- Demand may be defined as desire backed by adequate purchasing power. Benham therefore says – “the demand for anything at a given price, is the amount of it which will be bought per unit of time at that price.” Law of Demand: - The Law of Demand states that when the price of a commodity rises, there occurs a fall in the amount purchased. Conversely, when the price of a commodity falls, the amount purchased increases. From the Law of Demand it follows...
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...In microeconomics, the theory of consumer choice relates preferences (for the consumption of both goods and services) to consumption expenditures; ultimately, this relationship between preferences and consumption expenditures is used to relate preferences to consumer demand curves. The link between personal preferences, consumption, and the demand curve is one of the most closely studied relations in economics. Consumer choice theory is a way of analyzing how consumers may achieve equilibrium between preferences and expenditures by maximizing utility as subject to consumer budget constraints. Preferences are the desires by each individual for the consumption of goods and services that translate into choices based on income or wealth for purchases of goods and services to be combined with the consumer's time to define consumption activities. Consumption is separated from production, logically, because two different consumers are involved. In the first case consumption is by the primary individual; in the second case, a producer might make something that he would not consume himself. Therefore, different motivations and abilities are involved. The models that make up consumer theory are used to represent prospectively observable demand patterns for an individual buyer on the hypothesis of constrained optimization. Prominent variables used to explain the rate at which the good is purchased (demanded) are the price per unit of that good, prices of related goods, and wealth of the...
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...Price Theory Assignment 1 – Consumer Theory Click Link Below To Buy: http://hwaid.com/shop/price-theory-assignment-1-consumer-theory/ Answers are in Image Format Suppose that Sally’s preferences over baskets containing petrol (good x), and food (good y), are described by the utility function U (x, y) = xy + 100y. The marginal utilities for this function are, MUx = y and MUy = x + 100. Use Px to represent the price of petrol, Py to represent the price of food, and I to represent Sally’s income. Question 1: Find Sally’s petrol demand function, and Sally’s food demand function. (8 Marks) Question 2: From Sally’s perspective, is food a normal good, an inferior good, or neither normal nor inferior? Briefly explain with reference to your answer to question 1. (2 Marks) Question 3: Suppose that the price of petrol is $2 per litre, the price of food is $5 per kilogram, and Sally’s income is $400. What quantities of food and petrol does Sally consume? What level of utility does Sally receive from this consumption basket? (3 Marks) Question 4: Suppose that, as in question 3, the price of petrol is $2 per litre, the price of food is $5 per kilogram, and Sally’s income is $400. Now suppose that the government is considering two alternative policies to improve Sally’s welfare. Policy 1: Place a $0.4 per litre subsidy on petrol, reducing the price of petrol to $1.6 per litre. Policy 2: Give Sally a voucher that can be used to purchase food (but not petrol). What...
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...Substitution Effect. y O1 O3 0 O2 x • The move O1 to O3 shows the net substitution effect. • For strictly convex preferences… • Net substitution effect is negative: (Δx*/Δpx)|Δwelfare=0 < 0 • x and y are net substitutes: (Δy*/Δpx)|Δwelfare=0 > 0 4 The Net Income Effect for Normal Goods. y O1 O3 O2 0 x • The move O3 to O2 is the net income effect. • It isolates the effect of enhanced purchasing power, factoring out the net substitution effect, caused by the price change. • In the example above, good x is normal, and so the net income effect reinforces the net substitution effect. 5 The Net Income Effect for Inferior Goods. y x*2b < x*1 < x*2a < x*3 O2b O2a O1 0 O3 x • Moving from O3 to O2a or to O2a are net income effects associated with x being an inferior good. • If O2a is the new optimum, then x obeys the law of demand. • If O2b is the new optimum, then x is a Giffen good. 6 Deriving a Demand Schedule. y M/px1 M/px2 O1 O2 O3 M/px3 0 px px1 x px2 px3 0 d x*1 x*2 x*3 A (negatively inclined) individual demand curve / schedule. Shows the level of x in...
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...A CASE STUDY ON EXPLORATORY LAPAROTOMY WITH ADHESOLIYSIS, RIGHT HEMICOLECTOMY WITH PRIMARY END-TO-END ANASTOMOSIS ________________________________ In Partial Fulfillment of the Course Requirement In Surgical Nursing ________________________________ Presented to: The Faculty of Cebu Doctors’ University College of Nursing _____________________________ Submitted by: xxxxxxxxxxxxxxxxxxxxxxx Phi 2nd generation Class 2009 30 September 2008 TABLE OF CONTENTS I. Introduction ……………………………………………………………………. 3 II. Objectives ……………………………………………………………………... 5 III. Nursing Assessment……………………………………………………………. 8 A. Personal History Patient’s Profile Family and Individual Information Level of Growth and Development Normal Development at Particular Stage The Ill Person at Particular Stage of Patient B. Diagnostic Results…………………………………………………... 16 C. Present Profile of Functional Health Patterns ……………………. 17 Health Perception / Health Management Pattern Nutritional – Metabolic Pattern Elimination Pattern Activity / Exercise Pattern Cognitive / Perceptual Pattern Rest / Sleep Pattern Self – perception Pattern Role Relationship Pattern Sexuality – Reproductive Pattern Coping – Stress Tolerance Pattern Value –...
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...Centers for Disease Control and Prevention (CDC), an estimated 248,000 blood stream infections are reported per year (CDC, June 2010), and mortality rate of 12%-25 %( CDC, 2011) .This dangerous lethal medical complication can be prevented by proper management of the catheter insertion and strict aseptic technique during care. Even though CDC has recommended standard catheter associated blood stream infections (CA-BSI) prevention strategies, the study shows areas of variability in the surveillance. A central line is an intravascular catheter that terminates at or close to the heart or in one of the great vessels which is used for infusion, withdrawal of blood, or hemodynamic monitoring. The Aorta, pulmonary artery, superior vena cava, inferior vena cava, brachiocephalic veins, internal jugular veins, subclavian veins, external iliac veins, common iliac veins, common femoral veins, and the umbilical artery/vein in neonates are considered to be the commonly used great vessels for the purpose of reporting the central line blood stream infection (CLBSI). Central line plays a crucial role in medical practice, especially in intensive care unit, during major surgery, resuscitation, reliable hemodynamic monitoring, and vascular access for dialysis patients....
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