Reference no: EM132189801
Price changes can have a significant impact on the overall economy of a nation. A product experiencing price change can lead to an exponential change in the prices of related products.
The price of oil provides a good example of this concept. As oil prices increase, the price of gasoline also increases.
As almost all products rely on gasoline, either in the production process or in the distribution process, the prices of these products also increase.
As prices increase and incomes of consumers remain steady, spending decreases and products or services that have an elastic demand suffer. This assignment looks at some products you may be familiar with and allows you to analyze how price changes impact the overall economy.
Tasks:
Consider the last product or service you purchased for more than $50, excluding gasoline.
If the price of that product or service went up by 10% overnight, how would you adjust your behavior in the short term?
How would you adjust your behavior in the long term?
If you decide not to buy this product again, what will you buy instead?
Analyze who will be more sensitive to price changes in what kind of products.
What are some of the strategies that firms engage
: Why does adding value to the firm and creating returns for shareholders in the short run and long run matter?
|
Major cost drivers are rentals for the hall-catering costs
: Major cost drivers are rentals for the hall, catering costs, permits, transportation, lodging arrangements, on site staffing costs etc.
|
Analyze business growth overview dataset
: Analyze the Week 1 Business Growth Overview dataset. This is a marketing report generated by an analyst for the Senior Vice President (SVP) of Marketing.
|
Why are cartels among firms usually kept secret
: In the United States, why are cartels among firms usually kept secret? What is "competitive" about a monopolistically competitive market?
|
How would you adjust your behavior in the long term
: The price of oil provides a good example of this concept. As oil prices increase, the price of gasoline also increases.
|
Quantity theory of money implies that inflation equals
: According to Irving Fisher, when velocity and output are fixed, the quantity theory of money implies that inflation equals money growth.
|
What should her conclusion state
: What role does the margin of error play in determining how many individuals should be sampled if we desired a margin of error plus or minus .000001?
|
What is an oligopoly
: 1) What is an oligopoly? 2) Do you think an oligopoly is inevitable in this industry?
|
Reasons for restricting trade might be valid and when
: In your opinion, which reasons for restricting trade might be valid and when? What method do you think would be most effective and appropriate for each?
|