This website uses cookies to ensure you have the best experience. Learn more

Egt1 Task 1 Essay

1395 words - 6 pages

EGT Task 1

A. Demand of a unit is inelastic when the price is one and the increase to price makes the revenue higher. Elastic demand occurs when the price is higher than one and with the fluctuation of prices increase and decreases total revenue will incline or decline. A good example would be when the demand measurement is changed as when a company lowers the price products to boosts or increase sales.

B. The cross elasticity of demand measures how sensitive consumer purchases of one product (say, X) are to a change in the price of some other product (say, Y). We calculate the coefficient of cross elasticity of demand Exy just as we do the coefficient of simple price elasticity, ...view middle of the document...

3. Income elasticity measures what affect a change in a purchaser’s income has on the demand of all products. Analysts use income elasticity as a tool to measure the demand of certain products according to the state of the economy. For example, during a downturn in the economy, less money will be spent on higher priced, or more elastic goods, such as cars and houses.
Part D:
1. The availability of substitutes would tend to be more elastic if there are more close substitutes available for a specific product. If few close substitutes are available for a specific product, that product will tend to be more inelastic.
2. The share of a consumer’s income devoted to a good will tend to be more or less elastic relevant to the percentage of the consumer’s budget that the particular good requires. The consumer will pay more attention to a price increase on elastic purchases such as automobiles because it is a large part of their income. The consumer will pay less attention to a price increase on inelastic purchases such as candy bars because it is a small part of their income.
3. A consumer’s time horizon affects elasticity much in the same way as their income. The more time you have to search for products, the more elastic the purchase as you have time to find a large variety of suitable substitutes. The less time you have to search for products, the more inelastic the purchase, because you do not have the time to search out a large variety of alternatives.
Part E:
1. If there are more close substitutes available for a product, for example sodas, the demand will be more elastic because as prices rise for a particular brand of soda, people will switch to a comparable brand that costs less. If there are few close substitutes available for a product, for example insulin, the demand will be more inelastic because people will pay whatever price for insulin because there are no close substitutes. The logical impact to business decision making is that if the demand is elastic, price and total revenue move in opposite directions. For example, if the soda maker lowers its price on sodas, its total revenue will increase as more people will purchase the cheaper sodas. However, if the demand is inelastic, price and revenue move in the same direction. If the insulin manufacturer raises its price on insulin, its revenue will also rise because the same people will still need the insulin and there are no close alternatives for the consumer.
2. An automobile purchase will be more elastic because it is a large part of a consumer’s budget. Candy bars, on the other hand, will be inelastic because they represent a very small percentage of the consumer’s budget. The logical impact to business decision making is that the more elastic the product, the more competitive the pricing will have to be because the consumer will be looking for the cheapest price because the item represents such a large part of their budget. The more inelastic the...

Other assignments on Egt1 Task 1

Hospitals Paper

6014 words - 25 pages 6,665 in 1923. There were so many hospitals because most of them had a limited number of beds, most fewer than 50, and less than 200 had 200 beds or more (Arndt, Bigelow, 2007). Hospitals were left with a hard task in their early beginnings of overcoming what had become the reputation of hospitals at the time. Imagine the cleanliness and sterilization techniques that people knew about at the time. They didn’t exactly promote healing. Starr said this

Course Syllabus Essay

2610 words - 11 pages : Main Building, Room#: 2216 or Math. Dept. | |Office Hours |Date & Time: Tu, Th 1-4pm; 6:15-7:00pm | | |Location: Main Building Room#: 2216 or Math Dept | |Catalog


1477 words - 6 pages Boeing Management Planning Heather Oetzel MGT 330 October 22, 2012 Joe Cheng Abstract Boeing is known as “the world’s leading aerospace company and the largest manufacturer of commercial jetliner and military aircraft combined ("The Boeing Company: About Us", 2012). Every company uses different types of management techniques including how the planning function of management is used. Planning allows organizations to develop how the

Assisted Suicide

1015 words - 5 pages Should physician-assisted suicide be legal? While I believe if one chooses to end his or own life through physician assistance for reasons that they chose, the choice should be up to the individual. Physician-assisted suicide should be at one's discretion. “Assisted Suicide, also called Voluntary Euthanasia, is currently a contentious issue in many countries. Because Euthanasia is legal in a few modern democracies: the Netherlands, Belgium

Tanglewood Case 1

797 words - 4 pages ? Tanglewood should look for people with a person/job fit since the jobs are not loosely defined or anything. Which kind of KSAOs should Tanglewood look for? Tanglewood wants to employee people with general KSAOs because they can be used anywhere in the store since they are capable of learning on the go and be flexible. This way Tanglewood can task employees with their current job and even future jobs they might obtain down the line. As noted in the


1391 words - 6 pages . Корпоративните измами са най-ужасяващите престъпления. Всяка година заради пари смъртта си намират около 16 000 човека или 1/3 от общия брой на годишно загиналите, които са 56 000. За съжаление, все още няма закони за тези престъпления и големите фирми определят какво ще се случва на пазара и по какъв начин. Друг е въпросът дали ще изберат да бъдат честни към своите потребители, или да изграждат лъжи, които в случая с Форд водят до множество

The Penis

1052 words - 5 pages The short story ”The Penis” is written by Hanif Kureishi. The short story is about a penis, which has been separated from its owner Doug, who we hear from later on. At first though we hear about a guy called Alfie who was “a cutter – a hairdresser – and had to get to work”. He is having breakfast with his wife, when she asks him what he did last night, and if he had a good time last night? Alfie can not remember what he did last night, he then

Managed Care Paper

543 words - 3 pages and Dilemmas for Social Workers Practicing in Managed Care Environment, Critical Strategies: Psychotherapy in Managed Care, (2000) Vol. 1 Issue 1, p. 87 Case Management Society of America; retrieved 27 August 2012


439 words - 2 pages The life expectancy is lower; so people are not kept alive with drugs for decades in a virtual sleep state. There is less state education; so kids don't have it drilled into them that their only goal in life is to make money, at the cost of 'everything' else. The health care is less; so diseases, usually brought by Westerners, kill many more than they do in countries where drug companies can make a fortune from selling medicines that aren't

Chapter 6 International Business

7113 words - 29 pages Subsidies Learning Objectives 1. Describe the policy instruments used by governments to influence international trade flows. 2. Understand why governments sometimes intervene in international trade. 3. Articulate the arguments against strategic trade policy. 4. Describe the development of the world trading system and the current trade issues. 5. Explain the implications for managers of developments in the world trading system

Scope And Goals

279 words - 2 pages Introduction: Kudler Fine Foods is a specialty food store based in San Diego, California with its three locations in La Jolla, Del Mar, and Encinitas. Kudler Fine food prides itself on offering fresh and organic products that are carefully selected from local farmers and around the world. The organization has recently taken the initiative to start a Frequent Shopper Program to market and increase sales. This program will offer the customers a

Similar Documents

Egt1 Task 1 Essay

3703 words - 15 pages Economics and Global Business Communications Name Course Instructor Date Competency 309.1.1: Marginal Analysis A.1. Profit maximization is the desire and target of all trading companies that operate in various industries, in different markets (Taylor & Weerapana, 2012). They must first of all produce products for sale to achieve the same. This production results into various financial

Mgt216 Essay

714 words - 3 pages The first ethical issue presented in the ethics game simulation was whether to warn consumers about the contaminated product and what information to provide consumers about the contaminant. The second ethical issue was whether to sell a product that does not meet U.S. safety requirements in a foreign market that has lower safety restrictions. G-BioSport was not required to meet prior approval from the Federal Drug Administration before they

Economy Effect Of Marijuana Essay

277 words - 2 pages Modern American History by Alan Renga 2nd Mid Term! You will be given 3 Short Essay questions and 20 Multiple Choice questions deriving from this list! 80 points total! The 1920s Warren Harding then Calvin Coolidge Tea Pot Dome 1st Red Scare Immigration Restriction, Sacco and Vanzetti Langston Hughes, Marcus Garvey, KKK Prosperity, advertising Prohibition, Al Capone Flappers, Clara Bow, Rudolph Valentino Babe Ruth, Jack Dempsey

The Vc Shakeout Essay

2033 words - 9 pages ECONOMY 26 Luring a big firm to town is not the secret to job growth DEFEND YOUR RESEARCH 30 Are morning people wired for success? VISION STATEMENT 32 The social web’s east-west divide COLUMN 38 Warren Bennis looks back on his surprising path to fame New Thinking, Research in Progress New Thinking, Research in Progress FIRST The VC Shakeout Venture capital hasn’t worked for a decade and must be radically