a) Explain the basic economic concepts using the production possibilities curve(PPC) Let us assume that a JASMINE produces two products- trucks and boats. The PPC for trucks and boats shows the limits to the production of these two goods, given the total resources available to produce them. The basic economic concepts are: Scarcity, choices and opportunity cost. Point on A, B, C shows the first basic concept of CHOICES. If JASMINE is using its resources in an efficient way, then it is not
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Essay one. Economics is the study of human behavior as a relationship between ends and scarce means which have alternative uses. This definition is according to Robinson. While Marshall defined economics as a study of mankind in an ordinary business of life thus it inquires how he gets income and how he uses it. This definition clearly defines that economics is about studying wealth and mankind. The two definitions have various implications among them, is that human beings have needs which
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refers to a decrease or increase in demand due to change in non-price factors affecting demand. Therefore, it is referred to as a shift in demand (Forstater and Mathew 57). For instance, tea and coffee are close substitutes, if there is a decline in the price of a substitute (coffee); demand for the other good (tea) will decline as indicated in the graph below. D0 indicate the initial demand curve for tea, however, after a decline in the price of coffee, the demand curve shift to D1.
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the price elasticity demand and income elasticity demand of tobacco products the factors affecting each of these and the externalities caused by this product. Further, to explore further into the tobacco market, this blog post will discuss the theory of Rational Addiction, which contributes greatly to tobacco consumption. A. Elasticity of tobacco products Before analysing the elasticity of the tobacco market, it is important to know the fundamentals of elasticity. To start, elasticity refers
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4 ELASTICITY Topic: Calculating Elasticity Skill: Conceptual Price Elasticity of Demand 4) Topic: The Price Elasticity of Demand Skill: Conceptual 1) The slope of a demand curve depends on A) the units used to measure price and the units used to measure quantity. B) the units used to measure price but not the units used to measure quantity. C) the units used to measure quantity but not the units used to measure price. D) neither the units used to measure price nor the
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Chapter 4 Elasticity 4.1 Price Elasticity of Demand 1) A price elasticity of demand of 2 means that a 10 percent increase in price will result in a A) 2 percent decrease in quantity demanded. B) 20 percent decrease in quantity demanded. C) 5 percent decrease in quantity demanded. D) 2 percent increase in quantity demanded. E) 20 percent increase in quantity demanded. Answer: B Diff: 2 Type: MC Topic: Price Elasticity of Demand 2) The price elasticity of demand is a units-free
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com/featuredstory/524551/solar-survivor/) Right now the solar power industry can only exist and be competitive due to government subsidies. The main goal is to reduce costs to as lower as possible, in order to see the industry survive on it’s own feet and be able to have a competitive price when compared to other sources
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TERM PAPER FIRST SEM MBA MANAGERIAL ECONOMICS “Kinds Of Elasticity Of Demand” “Factors Influencing Elasticity Of Demand” GROUP 2 ROLL NO | NAME | 7 | PRAVEEN KUMAR K L | 8 | PRAVEEN R | 9 | PRITHVI LINGH HONNESH | 10 | PRITHVI P M | 11 | PRIYA DARSHINI B A | 12 | PRIYANKA JAHAGIRDAR | ------------------------------------------------- ABSTRACT From the managerial point of view, the knowledge of nature of relationship between
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TYPES OF ELASTICITY Elasticity is a term widely used in economics to denote the “responsiveness of one variable to changes in another.” In proper words, it is the relative response of one variable to changes in another variable. The phrase “relative response” is best interpreted as the percentage change. The quantity of a commodity demanded per unit of time depends upon various factors such as the price of a commodity, the money income of consumers, the prices of related goods, the tastes of the
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1. Elasticity of Demand measures sensitivity of the demand for a good to a price change. If the price of a good matters little, a change in the price of that good will have a small impact on one’s willingness to sell or buy and this would indicate an inelastic situation. However, if a small change in prices causes substantial changes in one’s willingness to buy or sell, the good is said to be elastic. McConnell, Brue, and Flynn (2012) note that when demand is elastic a decrease in price will
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