Sol Price

seller to sell his products at a given price. Supply can be influenced by many reasons and these are called the determinants of Supply. 1. Price – Price is the main factor that influences demand. In fact price and supply have a direct relationship. If the price of a product increases, supply increases simultaneously. This is because the seller wants to produce more and more and enhance his profit maximization by selling more items. In our example if Netflix’s price increases by 20%, Netflix…

to a change in price. Price elasticity of demand demonstrates how much of a product is demanded by the consumer when the price increases or decreases. When this occurs, if the quantity demanded changes very little, this is called an inelastic good. However, if the quantify demanded shows significant change, the good is considered elastic. Price elasticity is a useful tool for business to determine pricing of their product. Factors affecting Price Elasticity of Demand and Cross Price Elasticity…

The Free Markets and its Effect “A free market is a system in which the prices for goods and services are determined by the open market and consumers, in which the laws and forces of supply and demand are free from any intervention by a government, price-setting monopoly, or other authority.” In the video,” From the Expert” an illustration is presented of an apple tree and the height of the apples needed for harvesting. The video goes to show how picking the lower hanging apples yield a…

Positive correlation: If the increase or decrease in one variable affects the increase or decrease in another variable, we say that the two variables are positively correlated. Negative correlation: If the increase or decrease in one variable affects the decrease or increase in another variable, we say that the two variables are negatively correlated. Correlation coefficient: It studies about the degree of the relationship between the two variables. Or it studies about the strength of the two…

demand states: as price increases, Qd decreases and as prices decreases, Qd increases. The relationship is negative therefore the demand curve is a downward curve with a negative slope. If a carpet costs 10kwd, there is 20Qd. When the prices decreases to 5KWD, Qd increases to 40. When price increases to 15KD, Qd for carpets decreases to 10. Supply is the quantity supplied of goods and services at a given time. Supply has a positive relationship between price and Qd. When price increases, Qd…

sellers are willing to supply a good at different prices, as the price goes up the supply will increase and as the price goes down the supply will decrease. The supply curve shifts because of changes in costs or technology innovations, these changes can shift the supply curve in quantity supplied. The first scenario the orange growers have higher cost due to a hurricane, which wiped half of the orange supply produced for the year, that would make the price go up for the same quantity supplied of…

ISOQUANTS DEFINITION Isoquant (derived from quantity and the Greek word iso, meaning equal) is a contour line joining the set of all points at which a quantity of output is produced while varying quantities of two and/or more inputs. An indifference curve mapping helps us to arrive at the utility-maximization of consumers, the isoquant mapping deals with the cost-minimization of producers. Isoquants are ideally drawn alongside isocost curves in capital-labour graphs, showing the technological…

Research question: How does the mass (grams[±0.1g]) on one side of a pulley affect the mass (grams), and create equilibrium? Hypothesis: If the differences in masses (grams{±0.1g}) on each side of the pulley increases, then the mass in the middle of the two pulleys will be required to increase, because they will have to balance out each other’s mass to establish equilibrium. If the mass (grams{±0.1g}) on a side of a pulley decreases, then the mass in the middle of the two pulleys will be…

reality, products would be outrageous prices where only a very few could afford halting the economy to a standstill. As said in Cocktail Party Economics “The real enemy of money is inflation, especially deadly hyperinflation strain, inflation can take a perfectly reasonable bank note or bill and make it virtually worthless.” (pg.62). Trying to measure inflation, staticians use the consumer price index. The CPI gather serval commonly used items and measure the prices between years to determine…

How Does OSHA Raise Penalties 82% and We Don’t Notice? The two year Budget Agreement that president Obama signed in November 2 under closed doors, surprisingly included provisions that authorized Occupational Safety & Health Administration raised the penalties by as much as 50% to a new historic high level of 82%. This was the first time the penalty was being raised since Bush senior’s tenure in office, 15 years ago. In spite of the increase, Statistics indicate that OSHA fines are still…