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Income Elasticity of different consumer goods Commodities Coefficient of income elasticity Impact on expenditure Necessities
Autonomous Expenditure Also called Exogenous expenditure, is any expenditure that is taken as a constant or unaffected by any economic variables within our theory. For instan
price output determination under monopoly explain
Calculate point elasticity of demand for demand function Q=10-2p for decrease in price from Rs. 3 to 2
MONOPOLISTIC PRACTICES The following practices may be said to characterize monopolies. Exclusive dealing to supply and collective boycott Producers agree to supply onl
a. Explain why the demand for a particular brand is more elastic than the demand for all cigarettes. If Lucky Strike raised its price by 1% in 1918, was the price elast
Explaination of the Marris Model
The gap between theory and practise and the role of managerial economics: We have noted above that application of theories to the process of business decision making contributes a
Suppose market demand and supply are given by Qd = 100 – 2P and QS = 5 + 3P. If a price floor of $20 is set, what will be the size of the resulting surplus?
Merits of direct taxes a. They satisfy the principle of equity as they are easily matched to the tax payers capacity to pay once assessed. b. They satisfy the principles
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