1) Elasticity is the measure of response of a consumer to the change of the price of an item. Elasticity is determined by five different factors. The number of substitutes being one the more substitutes of a good the more elastic that good is. The time period is another whereas the longer a consumer has to make a purchase the more time he can spend looking for the cheapest price. There is also the necessity of the good. Clothes for instance is inelastic but a handbag not being a necessity is elastic. Another factor is the importance of the good in one's budget, the more important such as food the more inelastic this factor corresponds with the necessity factor. The last factor is generalization. If you are researching a group like food vs. Kraft ® American cheese, this plays on the first factor of number of substitutes. There is no substitute for food but there is a vast amount of substitutes for Kraft ® American cheese. .
There are four different types of elasticity. The first is the elasticity of demand or price elasticity. This type is the relative amount by the quantity demanded will change in response to a change of prices that goods are sold. Income elasticity is the response of quantity purchased to the change of an individual's income. Cross elasticity measures two goods that are either complementary such as electronic toys like "Leap Pad" to the sale of batteries or two substitute goods like Coke and Pepsi. The final type is elasticity of supply, which is the response of suppliers or producers to the change of prices that goods are sold.
Elasticity is important because it is used by both the government and businesses as a decision making tool. The government uses elasticity to decided what to tax while businesses use it to judge weather they should raise or lower prices to increase revenue.
3) The most important piece of information in the utility maximization process is marginal utility per unit because this measurement tells you how many a consumer can and most likely will purchase, as well as when marginal utility is zero is when the subject reaches maximum utility.
Sun Micro System's DOT Sun Micro Systems, a Tech Giant, always seems to persuade its audience through powerful logical persuasion. ... At this point the commercial presents us with perfect common sense idea related to economics. ... Take an example of Microsoft or even Sun Micro Systems have used this ideology to dominate the Tech world almost single handedly. ...
Sociologists study the world of sociology with either a macro or micro level point of view. ... On the other hand, micro-level approaches closely follows symbolic interactionism theory which "looks at the meaning (the symbolic part) of daily social interaction of individuals " (Steckley, 2014, p.33). ... Based on the in class discussion, micro individual-level factors had clearly prevailed over the societal-level factors when explaining the cause of student attrition. During the class discussion, we determined the macro-level issues included economics, cultural expectations, and structural i...
The Micro and Macro Environments: What they are and what the difference is between them. A company's marketing environment consists of the actors and forces outside marketing that affect marketing management's ability to develop and maintain successful transactions with its target customer...
The economics involved with sports has drastically changed over the last ten years. ... There are many aspects that are involved with the economics of sport. ... Economics is the study of how best to allocate scarce resources among competing uses (The Micro Economy Today Bradley R. ... Economics is concerned with the production and use of goods and services. ... The study of the manner in which choices are made is one of the central themes of economics (Basic Economics Richard S. ...
As a professor of economics at Chittagong University in Bangladesh, Yunus took his students for numerous trips to a poor town in Bangladesh called Jobra to learn about poverty. ... To be able to carry out his passion he would have to come up with his own theories and re-learn economics that would help him alleviate poverty (Yunus, 2007). ... By assisting micro borrowers and micro savers to build up companies and take ownership or large enterprises, Grameen is slowly trying to overcome poverty. ... The very way Muhammad has set up the idea of micro-credit and the micro-credit economic model al...
As a professor of economics at Chittagong University in Bangladesh, Yunus took his students for numerous trips to a poor town in Bangladesh called Jobra to learn about poverty. ... To be able to carry out his passion he would have to come up with his own theories and re-learn economics that would help him alleviate poverty (Yunus, 2007). ... By assisting micro borrowers and micro savers to build up companies and take ownership or large enterprises, Grameen is slowly trying to overcome poverty. ... The very way Muhammad has set up the idea of micro-credit and the micro-credit economic model als...
The idea of exchange theory has been applied to micro, meso, and macro levels of society. Originally this concept was mainly integrated within micro systems, but it was eventually able to be analyzed among a larger societal structure. "One basic thesis in exchange theory (at both micro and macro levels) is that uneven exchange leads to power of one party over another. ... In contrast to that, the exchange theory's derivatives seem to stem from behavioral psychology, functional anthropology, and utilitarian economics. ... Canda, Chatterjee, and Robbins (1998) suggests that the theory of...
Although errors and contradictory theories can be found in his writings, which are excellent catalysts for discussion, it is the focus of this paper to establish Marx's fundamental influence regarding modern-day politics and economics. ... He supports his theory by analogizing and comparing democracy to economics; saying the world had to be run from both a micro-economic stance (economics from an individualist view) and from a macro-economic stance (economics from a global view). ...
This brings us to the principle of economics, supply and demand. ... The negative effects of credit have been described on a micro economic scale. ... It plays an important role in personal economics as well as the economy of the United States. ...
As a result of the cyclical nature of economics it is inevitable that the once powerful Asian economies will again come back into power. ... These facts when taken into account with European control of trade routes and everyone else's narrow Eurocentric, micro view of world economic development make up Franks view of the development of global trade and economic history. ... Perhaps if ReOrient was based on solid, disputable evidence and Frank had present it in a manner that those without an extensive background in world economic development could absorb, the book could have had the des...