...Price Elasticity of Demand Example Questions Review: First, a quick review of Price Elasticity of Demand from lecture on 02/19/09. The definition, of Price Elasticity of Demand (PED) is: Price Elasticity of Demand = Percentage Change in Quantity Demanded = %ΔQD Percentage Change in Price %ΔP In order to calculate the PED we need two points on the demand curve, (QD1 , P1 ) and (QD2 , P2 ) . We use the midpoint formula, so: QD2 − QD1 ⎛ QD2 ⎜ ⎜ PED = ⎝ P2 ⎛ P2 ⎜ ⎝ + QD1 ⎞ ⎟ ⎟ 2 ⎠ − P1 + P1 ⎞ ⎟ 2 ⎠ Once we have calculated the PED between two points on the demand curve, we can say if demand between those points is “elastic,” “inelastic” or “unit elastic”: • • • Demand is “elastic” at a certain point if PED < -1 Demand is “inelastic” at a certain point if 0 > PED > -1 Demand is “unit elastic” at a certain point if PED = -1 There are a number of factors that can determine if a demand curve will be more elastic, or more inelastic (we will talk more about these factors on Tuesday, 02/24/09): Four Factors Affecting PED: 1. 2. 3. 4. Availability of close substitutes Necessities vs. luxuries Definition of Market Amount of time 1 When calculating different elasticities it is very important to keep in mind, what information you need to calculate a certain elasticity and what information you have available. Also, sometimes there is information that is not relevant to certain elasticities. Be sure you are aware of what information is necessary and what information...
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...with the use of performance enhancing drugs, commonly referred to as PEDs, is Major League Baseball, or the MLB. The issue of PEDs in the MLB has been a long-lasting one, and several of the most famous names in baseball, such as Barry Bonds, Mark McGwire,...
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...PED Price Elasticity Demand When price Quantity demanded When price Quantity demanded We have to Study not the direction of the change but the degree of the change If the price Quantity demanded markedly : Elastic = High response If the price Quantity demanded not markedly ( Low response ) Elastic = low response this is very important in Pricing Strategy In Elastic case : Reduce the price as long as it is still profitable In Inelastic case : Raise the price as long as It is accept Socially In Inelastic will not stay inelastic forever ; either turn into elastic or the demand will decreases Price changes with change in elasticity What is PED? Definetion of PED ? Calculation of PED , Degree of elasticity ? Importance of PED ? Pricing policy Determinant of PED ? Important or not ? Is there a substitute or not ...
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...About 30% of college and professional athletes use anabolic steroids, as do 10 to 20% of high school athletes. For instance, athletes are getting stripped of their titles and money. Therefore, the use of performance enhancing drugs is cowardly in sports. PEDs can threaten athletes health in many ways. First off, PEDs can harm athletes ability to have children in the future it also stunts growth along with hair loss. Eventually, it can cause bad acne but more importantly it can cause heart disease, liver tumors, and enlargement of the heart muscle. Finally, it can cause aggressive mood swings and deepening of the voice. PEDs would eventually cause unusually greasy skin and bad stretch marks. In the end, using performance enhancing drugs is...
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...Even though athletes would perform at a much higher level than others, over dosing and using consistently during each sporting event could lead to lifelong health problems. It is not worth risking your life by taking PEDs just so you can perform better, because we only get one chance at life. If we can continue to educate others on the effects of PEDs, they might see just how much of a problem these drugs can be. Even though I have not played on a sports team where I would be able to witness others using PEDs, after looking at all of the side effects for both males and females, I was shocked to see how much could potentially occur after using. All drugs in some way can have negative effects on our bodies, possibly resulting in a life threatening situation. If drug use is reduced for purposes other than medical reasons, there would be a decrease in these...
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...performance enhancing drugs be acceptable in professional sports? This is a debate that has been going around for years. In my opinion you should be able to use performance enhancing drugs (PEDs) in professional sports. Why not? At this point, hearing someone was caught using PEDs barely raises and eyebrow, so why not responsibly use our resources? In my opinion there is a difference between drug use and abuse. Scientists could use all the time that they use for testing people to show people and to find out how to use PEDs responsibly and safely. In sports, all athletes have different ways for training, diets, and gear. All athletes do things different from the other competitors yet we don’t consider that cheating. 20 out...
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...which are banned. It is easy to see the positive effects of using these performance-enhancing drugs with athletes becoming faster, bigger, and stronger; however, these athletes and there spectators don’t realize why these performance enhancing drugs are actually illegal, especially college students who are the major risk takers. Attached to the natural benefits of these drugs that make athletes feel closer to achieving their dream of winning are health risk, reputation risk, and loads of other negative effects of using PEDs. Enrolled in the University of North Texas, the authors of this paper have created a blog in order to appeal to the athletes here at UNT in order to help educate them on the exact reasons why these performance-enhancing drugs are illegal and to help persuade them against using them. In addition to reading and learning about the negative effects of PEDs, we have also included a pledge onto the page that athletes can sign to pledge not to use PEDs. Audience The main audience that we are trying to appeal here is the athletes of the University of North Texas. Athletes who excel in their respective sport and have made it to the collegiate level can attribute their success to their athletic ability and hard work. While college provides an opportunity for...
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...One study that was done analyzed the rate at which a clean player would start using PEDs after being traded to a team that was clean or to a team with players using the drugs. The clean players were 7.30 times more likely to start using when traded to a team with players already using PEDs (Murray, Rijt, and Shandra, 2013). This points to peer influence or the new social environment, and what appears acceptable in the environment, of the player impacts the decision on whether or not to use. Other evidence that peers have an influence is the testimony at the BLACO grand jury trial of Jason and Jeremy Giambi who stated the success of Barry Bonds, who is rumored to have taken steroids, was the reason they were drawn to steroids (Murray et al., 2013). Players saw success across the league in players such as Canseco, Bonds, Rafael Palmeiro, Mark McGwire, and Roger Clemens, which influenced decisions on PED...
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...to lose three million dollars out of his eight million salary. As an MLB spokesman shares with CNN that Braun is welcome to return after his suspension, as long as he’s making positive decisions that benefit Major League Baseball, whether it’s on field or off the field. Many professional athletes use PEDs to bulk up, build more muscles, and endurance; however, using PEDs nonstop can result in side effects like strokes, heart attacks, and death when used incorrectly. For the last couple of years, professional athletes from different sports have been caught for the use of PEDs or any other type of steroids, the players, usually a well-known person like Lance Armstrong and Alex Rodriguez. Although, the aid of performance enhancing drugs may provide entertainment to sports they also betray the values of sportsmanship; as well as give an unfair advantage over those who choose not to use PEDs. Many professional athletes know that taking steroids is bad for their health even if only used for a short period of time; however some do it anyway for money. It’s clear that professional athletes who sign bigger contracts make more money and this will likely cause them to turn to the use of PEDs. For example, Alex Rodriguez who is the highest paid baseball player makes 27 million...
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...The Ethics, Effects, and Fairness of PEDs Despite being banned in many leagues and competitions, steroids are still used to gain an edge over other competitors. Athletes use steroids without any regard to the ethics that accompany the intake of drugs. There are many reasons why competitors should, in fact, follow the rules set in place and stop using steroids completely. Performance enhancing drugs (PEDs) should completely stop being used in competitions or leagues. First of all, anabolic steroids are known to be bad for your health. PEDs have unpleasant, undesirable side effects. The United States Anti-Doping Agency lists the symptoms of using PEDs, which include ”liver damage, stunted growth, increased aggressiveness, leukemia, anemia,...
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...advertising goals are to inform, influence and remind. In contemporary society, advertising is regarded as having two functions, persuading customers and informing them (Santilli, 1983) According to Marcnerlove and Kenneth J. arrow (1962), the present and future demand of a product is affected by advertising expenditure and henceforth, the future revenue of the firm. Basic economic theory suggests that all firms are profit maximisers and in our analysis, we assume that firms only advertise when they have an incentive of getting better returns. This is where we introduce the Dorfman-Steiner condition, which states that the advertising-to-sales ratio equals the ratio of the advertising elasticity of demand (AED) to negative price elasticity (PED) (Feichtinger, 1992). According to Dorfman-Steiner, advertising intensity is great if the price-cost margin is high, thus intensity is explained by profitability. Concentration of industries also affect the level of advertising; unconcentrated industry firms where products are differentiated will advertise as long as it is profitable for them to do so. The relationship between concentration and advertising is roughly quadratic: intensity of advertising may rise with concentration levels, but decline once it reaches moderate levels (Martin, 1979). The data for the graph has been gathered by calculating the number and size of advertisements of different firms on a particular day in the STAR Magazine followed by categorizing them under their...
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...Since then, they have only had a limited list of minor problems with players trying drugs to better their performance. The NBA is known to be the true sport of the three big sports such as; football, basketball and baseball. Being the true sport it is meaning that everyone plays fair in the league and has no concerns about people trying to cheat. Compared to football and baseball where the use of PED is a major problem. The question critics want to know is, what can football and baseball do to be more like the...
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...athletes use. “The most common type of steroids that athletes use are anabolic steroids, or synthetic versions of the male hormone, testosterone” (Quinn). This particular PED increases the rate of protein synthesis in a cell. This means that there is an increased production of protein which leads to building more muscle. The steroid primobolan is a steroid commonly used by baseball players. It is the steroid that Yankees third basemen, Alex Rodriguez, took during his early playing career which later suspended him for breaking the illegal substance policy in major league baseball. This particular drug is heavily favored by athletes because it helps an athlete maintain a leaner look and improves the efficiency of muscle contractions. Steroids are also illegal to be taken unless they are prescribed by a doctor. Performance enhances that carry testosterone are illegal throughout the United States. Therefore, in sports, it is not only against the illegal substance policy, but also against the law unless they are prescribed. Players in baseball have been using steroids for many years. The steroids are commonly spread around the locker room from one player to another. A recent study by Peter Sullivan, a sports journalist, concluded that out of the three major U.S. sports, Major League baseball has the highest total of PED users. At 2.5%, baseball is the “poster child” when it comes to illegal steroid use. Players use steroids because they help them get stronger, workout longer, and they...
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...|A Report on | |Elasticity and Related Problems | |A Report on | |Elasticity and Related Problems | Course Title: Microeconomics Course Code: F – 106 Submitted To: Lubna Rahman Lecturer Department of Finance University of Dhaka Submitted By: |Serial No. | | | |Name | | | |ID No. | | | | | | | |01. | | | |Md. Tanvir Ahmed Chy ...
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...papillomavirus in three pivotal clinical trials, according to data presented in Tampa at the annual meeting of the Society of Gynecologic Oncologists.****rewrite in your own words. Comparison of 4,696 vaccinated women with 4,759 women in placebo groups showed reductions of 19% in colposcopy, 22% in cervical biopsy, and 42% in excisional therapy at an average follow-up of 3.3 years after the first dose of the quadrivalent vaccine (Gardisil/Silgard) against human papillomavirus (HPV) types 6, 11, 16, and 18. (Macneil, 2008) The end-of-study data reported came from three large efficacy trials sponsored by Merck & Co., maker of the vaccine. All told, the studies randomized 18,150 women aged 16-26 years to the vaccine or a placebo. Participants had cervicovaginal sampling and Pap smears on their first day in the studies and were followed with Pap smears every 6-12 months for up to 48 months. Median follow-up was 4 years from day 1.****what the study is The most dramatic reduction was 43% in high-grade squamous intraepithelial lesions (HSILs) seen on Pap smears. Although the drop was substantial, the numbers were small with only 41 cases in the placebo group and 24 among vaccinated women. Low-grade squamous intraepithelial lesions (LSIL) declined by 14%, occurring in 864 vaccinated women vs. 1,000 women on placebo. Other reductions in abnormal Pap tests included: * A drop of 16% in atypical squamous cells of undetermined significance that were high-risk positive (meaning positive...
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