Remember that supply is a schedule of how many units suppliers are willing to offer at different prices. When costs fall, the supply curve increases or shifts to the right. Since changes in producer costs is not a demand factor, there would be no impact on demand. | | | | Points Received: | 10 of 10 | | Comments: | | | | 2. | Question : | (TCO A) Ceteris paribus, coffee Brand X and coffee Brand A are substitutes in consumption.
1. Question : (TCO A) There is an increase in the cost of labor for producing bicycles. (4 pts.) What happens to bicycle supply? (6 pts.)
Distinguish between a Change in Supply and a Change in Quantity Supplied. List and explain the factors that will shift a supply curve. Use demand and supply curves to determine the equilibrium price and quantity of a good. Use demand and supply curves to show the effect changes in supply and/or demand have on the price and quantity of a good. • Define Price
Moving to a 10 oz. aerosol can and using suggest retail price of $4.25 bringing the price per ounce to $.43 making it much more competitively priced with in the market. (See appendix C for average and high/low shaving product pricing). 3. Cost of Goods Sold for the 10oz.Soft and Silky shaving gel ($.29) is significantly less than its competitors Gillette and S.C. Johnson (See Appendix C-Pricing) 4.
Horizontal mergers are businesses, which are quite close in the sense of the goods or services they make. Example of horizontal merger would be coca-cola and and pepsi. The aim of a horizontal merger is to gain more market share and become price setters rather than price takers. They can also reduce their costs when getting together. Another type of merger is vertical, its when companies which produce different goods but in the end are finished with a product using powers of both companies.
The functional areas that would be affected are the production department and the financial department. The production department would be affected because the amount of Ribena they have to make would have would decrease. It would affect the financial department because if less people are buying then less money will be coming into the business. This may affect the RSPCA because more people will be donating to them. More people will donate because if you live alone you will have more money and time to donate and/or volunteer.
Other fixed and variable costs are 40 per cent which allows 10 per cent profit per dollar. An increase in marginal costs will affect marginal revenue. Fortunately for the Snack Cart, the marginal cost does not greatly impact marginal demand. Dedicated customers are willing to pay the price in order to have their favorite products available in the manner they have grown accustom. The purchase price of supplies and products does not fluctuate so significantly that marginal revenue is affected unless there are weather-related events which create a decrease in supply.
Explain your answer. The cross price elasticity with soda is considered to be rather high (3) therefore, if the price of soda drops, I think the demand of beer will stay the same. This elasticity measures the rate of response of quantity demanded of one good, due to a price change of another good. These two goods are not substitutes in my eyes. I think the demand of beer will decrease and the demand of soda will increase.
olEvaluate the case for cutting public expenditure rather than raising taxes as a means of reducing fiscal deficits. (30) A fiscal deficit is when the government spends more than it receives in tax revenue. There are many benefits of cutting expenditure rather than increasing taxes. Firstly this will avoid any tax evasion and avoidance. This is because when taxes are increased a smaller amount of income is retained giving people the incentive to declare lower incomes to the HMRC so that they fall into a lower tax bracket.
Obama’s plans to make jobs through stimulus have failed. Everything in our economy is high: Utility bills, health premiums, and gasoline prices. Obama’s own plan to tax the small business owner more instead of giving him a break during these tough economic times. His TRILLION DOLLAR DEFFICIT will slow our economy; take away jobs and causes the wages to stall. His plan to raise taxes on small business won’t add jobs, it will eliminate them.