Question.3122 - Disc question 1: Think about a product that you have purchased recently (e.g. soda, diapers, takeout meals, milk, shoes, manicure/pedicure, video game, etc.). Explain how the law of demand affected your purchase. Give specific examples of how the determinants of demand and supply affect this product (T-I-P-E-N and P-R-E-S-T). What happens to the demand curve and the supply curve when any of these determinants change? Give examples of scenarios that would cause a change in demand versus a movement along the same demand curve and supply curve for this product. Discuss the new equilibrium price and quantity that result from these changes. Can you demonstrate some of these changes graphically? Disc question 2: Think of another good that you have purchased recently (or you could continue with the good you selected in TDA I). Be specific (e.g. is it breakfast cereal in general or Cheerios cereal specifically). If the price of this item increases, how would this affect the quantity of the good that you consume? Is the Demand for this good Price elastic or Price inelastic? Justify your classification by talking about the determinants of elasticity as they apply to this product. Say price is on the rise for this product and you are the manager of a store, would you be thrilled to be selling this product? Under what circumstances would you want to own a business that sells this product? In other words, how does an increase in price for this good affect your Total Revenue? Using specific examples, relate the concepts of Cross Elasticity and Income Elasticity to this product.
Answer Below:
Disc xxxxxxxx Think xxxxx a xxxxxxx that xxx have xxxxxxxxx recently x g xxxx diapers xxxxxxx meals xxxx shoes xxxxxxxx pedicure xxxxx game xxx Explain xxx the xxx of xxxxxx affected xxxx purchase xxxx specific xxxxxxxx of xxx the xxxxxxxxxxxx of xxxxxx and xxxxxx affect xxxx product xxxxxxxxx and xxxxxxxxx What xxxxxxx to xxx demand xxxxx and xxx supply xxxxx when xxx of xxxxx determinants xxxxxx Give xxxxxxxx of xxxxxxxxx that xxxxx cause x change xx demand xxxxxx a xxxxxxxx along xxx same xxxxxx curve xxx supply xxxxx for xxxx product xxxxxxx the xxx equilibrium xxxxx and xxxxxxxx that xxxxxx from xxxxx changes xxx you xxxxxxxxxxx some xx these xxxxxxx graphically xxxxxxxx Few xxxx back x had xxxx a xxxxxxxx of xxxx for xxxxx were xxxx substitutes xxxxxxxxx for xxx same xxxx different xxxxx ranges x purchased xxx one x was xxxxxx comfortable xxxx and xxxx tried xxxx a xxxxx I xxxxxxx to xxxxxxxx this xxxxxxx my xxxxxx was xxxxxx as x am xxxx the xxxxxxxx demanded xxxx along xxx curve xx higher xxx this xxxxxxx However xx I xxx some xxxx coupon xxx could xxxx got xxxx soda xxx that xxx demand xxxxx would xxxxx to xxx right xxx I xxxxx expect xxx price xxx following xxxx to xxxxxxxx At xxx price xx the xxxxxxxx which x bought xxx but xxxx it xxxxx be xxxx I xxxxx have xxxxx but xxxxxx the xxxx of xxxx increment xxxxx decrease xxx to xxx of xxxxxxxxxxx marginal xxxxxxx The xxxxxxx for xx soda xxxxx not xx the xxxx as xxx the xx one xx a xxxxxx if xxx price xxxxxxxxx to xxxx week xx quantity xxxxxxxx shall xxxx to xxxx question xxxxx of xxxxxxx good xxxx you xxxx purchased xxxxxxxx or xxx could xxxxxxxx with xxx good xxx selected xx TDA x Be xxxxxxxx e x is xx breakfast xxxxxx in xxxxxxx or xxxxxxxx cereal xxxxxxxxxxxx If xxx price xx this xxxx increases xxx would xxxx affect xxx quantity xx the xxxx that xxx consume xx the xxxxxx for xxxx good xxxxx elastic xx Price xxxxxxxxx Justify xxxx classification xx talking xxxxx the xxxxxxxxxxxx of xxxxxxxxxx as xxxx apply xx this xxxxxxx Say xxxxx is xx the xxxx for xxxx product xxx you xxx the xxxxxxx of x store xxxxx you xx thrilled xx be xxxxxxx this xxxxxxx Under xxxx circumstances xxxxx you xxxx to xxx a xxxxxxxx that xxxxx this xxxxxxx In xxxxx words xxx does xx increase xx price xxx this xxxx affect xxxx Total xxxxxxx Using xxxxxxxx examples xxxxxx the xxxxxxxx of xxxxx Elasticity xxx Income xxxxxxxxxx to xxxx product xxxxxxxx Here x shall xxxx example xx takeout xxxxx We xxx used xxx the xxxxxxx meals xxx consume xx more xxxx times x week xxxxxxxx the xxxxx has xxxxxxxxx from x packet xx a xxxxxx As x result xx this xxx quantity xxxxxxxx by xx has xxxx down xxx we xxx to xxxxxxx max xxxxx the xxxxxxx meal xxxx means xxx price xxxxxxxxxx of xxx product xx elastic xxxx reason xxxxxx this xx there xxx many xxxxxxxxxxx available xxx the xxxxxxx meal xx can xxxxxx take x burger xx a xxxxxxxx Since xxx price xxxxxxxxxx for xxxxxx for xxxx product xx elastic xxx slope xx our xxxxxx curve xxxxxxxx negative xx close xx and xxx elasticity xx also xxxxxxxx but xxxxx to xx a xxxxxxx of xxx store x would xxx like xxx price xxxxxxxx on xxxx cereal xxxxxxxx it xxxxx like xx I xxx the xxxxxxx of xxx store x obviously xxxxx not xxxx the xxxxx increase xx this xxxxx decrease xx sales xxx this xxxxxxx Incase xxx price xxxxxxxxxx was xxxxxxxxx I xxxxx be xxxx than xxxxx if xxx price xxxxx have xxxxxxxxx But xxxx rsquo x not xxx scene xxx price xxxxxxxx from xx the xxxxxx would xxxx but xxx majorly xxx elasticity xxxxx be xxxxx to x and x would xxxxxxxx be x monopoly xx case xx price xxxx the xxxxx revenue xxxxx increaseMore Articles From Economics
.ico)
.ico)
.ico)
.ico)
