Transportation demand management

there are many buyers and sellers, there are few barriers to entry and firms are price takers, their demand curve is perfectly elastic. Moreover, as foie gras has few substitutes it´s Price Elasticity of Demand (PED) is inelastic. Similarly, in the short run, it´s Price Elasticity of Supply…

ceiling price influence economy Price control is a big thing in our daily life, and it affects everyone. From the necessary products to the luxury product, everything can have price control. Normally, the market can control by itself, as a certain demand can match a certain supply to let the product have a biggest profit and let the consumer benefit because the consumer surplus is maximum. However, the market price may be too low or too high, the government will have to show up control prices,…

past, sugar was considered to be an important but scarce commodity, one that only the rich and powerful could afford. Today, the advancements of technology combined with the increase of disposable income has resulted in an exponential demand for sugar. This demand is met with increased supply, and sugar related products is now used in almost all food related products. This over exposure of sugar, particularly in the form of sugary drinks, is damaging to the health of individuals, disrupts the…

If entrepreneurs can create products that consumers demand, they can make a large amount of profit and become extremely successful. The reason for this is that since consumers have the ability to earn their own money and spend it however they would like, they buy whatever goods and services they want in whatever…

Freakonomics can be seen as the study of economics based on the principle of incentives. In the movie, Steven Levitt and Stephen Dubner gives multiple examples of how incentives govern our thoughts and actions and its role in economics. The first example explored was the unlikeliness of a house agent to wait to sell a client house for a higher price. The simple reason is the low incentive. If the agent was to wait another week to sell the house for a price that is only 10k higher, they would get…

good job of debunking this “labor fallacy”. From Wheelan’s explanation, I learned that every new job does not necessarily come at the expense of a job lost somewhere else. When new people enter the workforce, they create new demand within the economy thereby creating demand for other new jobs. This helped me to be able to better understand and explain why immigration can be a benefit to the job market rather than a detriment to American…

Competitive force – one can notice that Delanghe became superior in his filed of agriculture. This could be seen in various awards, which were obtained including Lifetime Achievement Award, Red Delicious apples, and Kent County Agricultural Fame. These awards prove that Delanghe’ product exceeded expectations of the buyers and turned to be more innovative that their competitors. In such business, where the product is demanded and the quantity supplied is high, the only way to be competitive is…

the profit margins so as to appropriately set their prices. The formula for full costing model is (Total Production cost+ Selling and administration cost + markup)/number of units to sell. The pricing model is usually applied when there is a known demand and when there is specific requirement by customers. Full-Cost Price model is a model that has been developed against the modern economics model of Average-Cost-Pricing. In this model, price is set based on the average-cost principle.…

can choose to give more chips at the same price, drop the price of chips, or keep the price the same in case of future price rises. 3. Supply and demand Two of the most important factors affecting your price are supply and demand. 10. Supply. The amount of a product or service that businesses provide at a given time and a given price. 11. Demand. The amount of a product or service customers are willing and able to buy at a given time at a given…

Pareto optimality is a tool used by normative welfare economist who measures welfare in terms of preference satisfaction. This tool is used for assessing social welfare, resource allocation and to analyze public policy. It was a principle proposed by Italian economist and sociologist, Vilfredo Pareto in order to make high levels of inequality justifiable. An allocation is said to be a Pareto improvement if no alternative allocation could make at least one person better off while not making…