microwavable food depends on the price of the good, its competitive good, advertisement expenditure and income of the consumer. From the demand function and the elasticities calculated, it is found that the market for the low calorie microwavable food belongs to a monopolistically competitive market. A monopolistic competitive is characterized by a fair number of buyers and sellers. Therefore people can switch to another brand if a particular brand charges a high price. But a monopolistic competitive
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different one, say monopoly. This implies that the organization/firm is the only producer in the market and meets all customers’ needs. Two vital factors that can lead to such a change include; withdrawal of a competitor and increase or decrease in price of products (Slack & Lewis, 2003). The above change will influence business operations in various ways. For instance, there will be increased output since the market share
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a massive change in prices when buying a house in Australia, this is due to many different factors, which have had a big impact on the economy itself. One of the main reasons why prices have been going up is because of the population growth. As we know as the demand increases, price also increases. Recently we have seen a change in people willing to buy a house, they are mostly aged between 22 to 42 years old and in most cases, they can not afford to buy a house because prices in Australia those days
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different one, say monopoly. This implies that the organization/firm is the only producer in the market and meets all customers’ needs. Two vital factors that can lead to such a change include; withdrawal of a competitor and increase or decrease in price of products (Slack & Lewis, 2003). The above change will influence business operations in various ways. For instance, there will be increased output since the market share
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Factory has reduced the price of its popular Sundae from $2.25 to $1.75. As a result, the firm’s daily sales of these sundaes have increased from 1500 a day/ to 1800 a day. Compute the arc price elasticity of demand over this price and consumption quantity range. The arc price elasticity can be computed with the formula of arc elasticity. After the calculation we are getting that the arc price elasticity will be equal to 0.72 which is less than 1, that means that the price is inelastic. 4. The
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goods of one common goal, to sell their products. To cater to this rapidly changing market many large scale retailers are findings ways to make their product more appealing to the public in hopes of gaining market share over their competition. As prices rise, customers are forced to buy substitutes of well-known brand names or alter their preferences. This results in the phenomenon known as monopolistic competition. Monopolistic competition is defined as the result of many firms competing for the
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By: Hriskesh Ashokan, 42522490 Describing and illustrating changes in the international cocoa/chocolate market over the last 20 years. Hriskesh Ashokan 42522490 The aim of this essay is to apply the economic concepts I have learnt, to depict changes that have taken place in the international cocoa/chocolate market over the last 20 years. Given the criteria that we are only allowed up to five articles to cite references, most of my figures will be limited to those portrayed in my sourced articles
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consumers get a closer shave, moisturize skin, and reduce razor burn. Razors and shaving cream are complementary products because the price of razors has an inverse correlation with the demand for shaving cream. When the price of razors rises, the demand for shaving cream will decrease. Since the products are complements, this is known as cross elasticity. Cross elasticity occurs when the increased cost of one product
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should not be restricted. Economics assume that people, usually, are the best judges of themselves. Economist have also come to the conclusion that consumers tend to drink less alcohol, and have fewer alcohol-related problems, when alcoholic beverage prices are increased or alcohol availability is restricted. A possible solution to the alcohol abuse problem could be limiting which stores are able to sell the alcohol products. It is very easy to obtain alcohol and if it was not as easy to
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profits while capitalizing on the price insensitivity of buyers. A Penetration strategy would not be beneficial because with a lower price and a higher production cost, our profit margins will be negatively affected and our performance objective will not be reached. o (20% – 22%) / 22% = .268 [ < 1 i.e. Price Inelastic] ($.79 - $.59) / $.59 o (15% – 20%) / 20% = .988 [ < 1 i.e. Price Inelastic] ($.99 - $.79) / $.79 Vital-Aid will be sold at the manufacturer price of $0.53 and the MSRP of $.79 per
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