Induced demand

problem of detecting and deterring deviation from the agreement. Firms can only observe the market price, but do not know the actual production level of another firm. Unexpected fall in prices may account for deviation from the colussive output or bad demand shock. So firms can deter deviation only by threatening to set Cournout quantities, which are above monopoly quantities, during a period of a price below agreed one. The equilibrium of the model is that firms want to maximise their profits…

1.0 The Warehouse Layout and Design According to Thomas L.Freese, nowadays the strategic of warehousing is changing rapidly. It is because, the number of shipments is creasing while the number of inventory is decreasing. Therefore, now the warehouse layout and design is different if compare to the past, such as now we need bigger assembly areas for the shipment, picking ares and pick slot but smaller the storage areas. (Freese, 2000, p. 1) 1.1 The Important of Warehouse Layout and Design The…

4.2.4 Effect of Feed flow rate (Fgr) on Product Distribution An increase in the flow of gas oil means an increase in the velocity of the gas oil feed, also a decrease in the residence time of the gas oil in the riser; hence a rise in the conversion of gas oil and yields of the products is expected(Akpa et al. 2010). When the flow rate of gas oil is increased, there is an increase in the heat inflow into the reactor, rate of cracking reactions are high, feed also spends less time in the reactor…

1. Analyze Deo market and Dry Idea's Place in it. What drives the category from the consumer behaviour point of view? The US market for underarm products have grown to 506 million units, consisting over $1 billion in sales by the year 1983. The categories of the product were: • Deodorants – consisting of 25% sales and provided for only anti-odour protection • Antiperspirants– consisting of75% sales and provided effective deodorancy and protected against perspiration wetness There were four…

3.0 Hypothesis I assume that as the solution is treated with higher amount of fertilizer, the Spirulina cells will reproduce better and survive for longer time as there will be higher amount of nutrients supplied. Therefore, it is assumed that the Spirulina-concentration of the trials treated with 1.0mL fertilizer will be higher than those treated with 0.5mL or 0.0mL. Although wastewaters contain elements which are vital for the Spirulina growth, as it contain other unknown substances as well,…

The neoclassical economic model gives an exceptionally fulfilling clarification of why parties are willing to join hands and enter into a contracts. Parties enter into contracts with their own free will without any coercion. Hence each party will enter into a contract only if its anticipated benefits are greater than the expected costs. For example assume that a house owner offers to pay a painter $5,000 to paint her home. The house owner must expect the value of the benefits she receives from…

For example, if apples are in high demand the stores may increase their prices to get a better profit. The common misconception is that these companies increase their prices of goods and services because they want more money, but in fact it’s because of the consumer that there is a rise in prices. The definition of the market economy is: a capitalistic economic system in which there is free competition and prices are determined by the interaction of supply and demand. Jay Richards breaks down…

of scale that limit their costs of production and are large enough to efficiently supply the country with mail. Since a monopoly is the only seller of a good in the market, the demand curve is the market demand curve. Therefore a monopoly has a downward sloping demand curve, in contrast to the horizontal sloping demand curve of a firm in a competitive market. (Mankiw,…

factors: stronger economy in the U.S, continued demand for housing, and slow growth in supply or low inventory level. There is a slow growth of supply because some sellers were just hesitant to sell their property since they are often outbid, turned down for loans or they just could not find what they want. With the new developments in the market, not only the locals but also international buyers, particularly Chinese investors, would have a greater demand for housing. The new housing developers…

ones that would not have been discovered without separation of work. Division of labor, in turn, makes the society more well off as they are producing more goods all together. But the richer society can only take place in a large population, where a demand for specialized services is abundant. This increased production capacity does allow individuals to acquire a variety of goods without producing everything on their own, but comes with consequences and externalities to the working…