Price elasticity of supply

Ivory is a hard creamy-white substance, typically used to make jewelry and other ornaments, that composes elephant tusks. Due to the high price of ivory killing elephants for their tusks has become quite a lucrative business which has resulted in the African elephant being brought to the brink of extinction. The prohibitionists dominate the ivory trade debate, however is a ban on ivory trade really all that beneficial. I argue that an ivory trade ban is in fact counterintuitive and brings with…

The curves and show the supply and demand of Poland. Prior to joining the customs union, Poland had to pay a tariff in order to trade with EU countries, indicating that Poland traded at a price of P1. From figure 1 we can infer that at this price of P1, Poland would produce at Q2 and consume at Q3, where the price level meets the supply and demand curve respectively. Therefore, Poland would import Q3 – Q2. However, as Poland becomes…

Introduction It can be easily expected from a company to offer a static price for their goods and services, but how does static pricing maximize profits? Currently, companies who make sales online are able to collect data on their current and potential customers regarding their demographics and track their search and purchase history. With the collected data, companies can produce a price that may match the dollar value of certain customers – this is called Dynamic Pricing. Dynamic Pricing is…

product. (Business Jargons, 2017) Oligopolistic market has high barriers for entry. One main reason for this is economies of scale. Oligopoly can produce large scale of products at a low average cost, thus these firms can sell the products for a lower price and yet gain an increased profit. However this can be a disadvantage for the consumers as their choice would be limited if there are fewer firms. (Business Jargons, 2017) An example of oligopoly can be the service provided by Bahaadharu,…

combination of characteristics between monopoly and perfectly competitive market: * Many sellers. Many firms competing for the same group of costumers. * Product differentiation. Each producer offers products that are not the same. Instead, being a price taker, each producer follows the downward sloping curve. * Free entry. Firms can enter or exit without any restriction. According to economics, a monopoly is a firm that produces a product for which there are no close substitutes and in…

IPHONE - SUPPLY, DEMAND AND FUTURE OUTLOOK 3 party Windows only programs which were buggy at best. Once Apple allowed its products to play nic ely with the rest of the computing world it unknowingly opened up the doors to future products, specifically the iPhone. The iPod was not Apple 's first foray into handheld devices but its success helped pave the way for the iPhone and build their digital media player and associated iTunes online digital store into market power houses. At some…

By the simplest and most basic economics, a price artificially raised tends to cause more to be supplied and less to be demanded than when prices are left to be determined by supply and demand in a free market. The result is a surplus, whether the price that is set artificially high is that of farm produce or labor. Making it illegal to pay less than a given amount does not make a worker’s productivity…

non-proportional and indirect relationship between quantity theory of money and prices. He formulates the missing link between the in the old theory old money that failed to exert the influence quantity of money on the interest rate, which in turn reacts upon the output and employment. Keynes’ theory of money revolves around the fundamentals of how money affects income via the interest rate. For example, an increase in the money supply lowers the interest rate, and the lower interest rate in…

In this diagram, SX is the supply curve and DX is the demand curve of commodity X in a large nation. When there is no trade, point E represents the point of equilibrium (the intersection between SX and DX). When there is no tax imposed on commodity X, PX is equal to £1.00; the nation consumes 200X, which is represented on the diagram by the distance AB. Out of that, 40X is domestically produced (distance AC) whilst 160X is imported (CB). In this essay, I will use this diagram to elaborate on how…

Ghagat’s costs per part include $10 for labor, $10 for other costs, and a markup of $5. The contract between Rich Manufacturing and Ghagat states that a minimum of 50,000 units must be purchased, however up to 100,000 parts can be purchased at this price. Due to contract negotiations between Bhagat and the union, Bhagat announced an increase…