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Q2. What is an inferior good? If the price of an inferior good falls what can we say about the quantity consumed? Explain Definition Consumer’s demand for goods depend upon the level of income. Inferior goods are defined as goods for which quantity demanded decreases with an increase in consumer’s income and quantity demanded increases with a fall in consumer’s income. This happens when the goods have relatively expensive substitutes available whose demand increases when the consumer becomes…

amount of subscribers for Netflix verse Hulu. Figure 3 shows that despite the price increase of 12.5% in 2015, the amount of subscribers still increased. The figures above are evidence that the price increase did not have a significant impact on consumer responsiveness. This concludes that the price elasticity of demand is not sensitive; meaning that the change in price did not affect the change in demand. The change in price does not affect the demand because the supply Netflix offers is highly…

compare the supply and demand of a product because it demonstrates how the demand was effected when the supply started dropping. The law of supply is described by stating that for a higher price a company is willing to produce more of a product (Sexton, 2013). Therefore, if a company is offered a lower price for a product, a smaller amount of the product will be produced, and, apparently, lower amounts of the vaccine were produced. Therefore, when the demand began to increase, the supply…

supplied. On the macroeconomic, the concepts can be classified price ceilings and price elasticity, the both have a significant impact on the apartment market in Atlantis as a whole. The microeconomic factor in the simulation displayed that a change in the demand curve or supply curve would cause significant changes to the economic setting. For example, in Atlantis, when a change of supply in the quantity of apartments increased, the price of rental decreased in demand at an equal rate.…

a. Consumer surplus: Consumers are willing to pay a certain amount for a good or service. The variance in that price is considered consumer surplus. When the price is less than they are willing to pay, the amount (or quantity) of that good or service increase. When the price is higher than they are willing to pay, the amount (or quantity) of that good or service decreases. An example of consumer surplus is as follows: Consumers are willing to pay $1.00 for tuna fish. Tuna fish is…

MBA 540 Mid-term Exam 1. (10 pts.) Stella Ann Freeman is having a difficult time deciding whether or not to purchase a new car. How would understanding the concept of opportunity costs help her make a decision? According to Brickley, et al. (2016), the “opportunity cost of using a resource for a given purpose is its value in its best alternative use.” To help Stella make a decision on purchasing a new car, she would need to make a marginal analysis as to narrow down what her best option for…

Elasticity is how sensitive supply or demand are to a change in price. A product is elastic if the price change causes a big change in quantity demanded. A product is inelastic is the price change causes a small change in the amount demanded. There are three questions you can ask to determine the elasticity of a product. Can the purchase be delayed? Are adequate substitutes available? Does the purchase use a large portion of income? Can the purchase be delayed? If the consumer’s need for the…

To: Bipul Chakraborty From: Sajal Nazir, Consultant Re: Tata Steel Zoological Park Problem Statement: This report will assist Bipul Chakraborty, the new Director of the Tata Steel Zoological Park, in determining how the triple bottom-line framework can be incorporated into the business model; where the zoo can become a profitable and self-sufficient business venture, while also meeting its conservational, environmental and social objectives. Key Issues: The zoo is facing a profitability…

demand which includes price elasticity of demand, income elasticity of demand, and cross elasticity of demand (McConnell, Brue, & Flynn, 2012). There is also elasticity of supply. Elasticity can vary among products because there are some goods that may be more essential to one consumer rather another consumer. Price elasticity plays an important role in the lives of consumers. The price elasticity of demand is the sensitivity of the demand for a product when its price changes (McConnell,…

2.4 MPA theories 2.4.1 Yerkes-Dodson law In a nutshell, the Yerkes-Dodson law operates in the following manner: when arousal increases from low to moderate levels in an individual, the individual’s performance quality will be greater. If the arousal levels reach a point that is to high, performance quality decreases. Figure 1: Hebbian’s Version of the Yerkes-Dodson Curve (Dodson & Yerkes 2014) Optimum arousal is an adaptive anxiety which facilitates better performance (Lehmann et al.…