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Prioritizing needs help in determining which needs can be satisfied first within the limited budget by postponing the less important ones. At a national level, the budgeting activities help in putting the government’s revenues into adequate spending areas. These are then broken down into provincial and state budgets making the allocation more precise and directed, increasing the chances of more effective use.
The phenomenon of demand and supply and their effect on price determine the feasibility of each transaction in one’s personal life. By understanding the basic laws of demand and supply, I understand that the goods in demand are likely to be high priced when in season and vice versa. This helps me make smarter decisions in the day to day life. For example appliances like air conditioners are likely to be on discounted deals in winters, making it feasible for me to purchase one in winters instead of in summers. Similarly, shopping for jackets in summers helps me save a bundle on shopping for the same apparel in season.
When the price affects the demand level, this is known as elastic demand. Similarly the goods whose demand is not affected by slight change in price are called inelastic. In my daily life i come across many goods that I can do without and pursue cheaper alternatives. However, being loyal to a couple of brands, I give price moderate weightage in the whole buying transaction. On the other hand, the evident inflation for necessities reflects the masses helplessness and constant demand no matter how much the prices fluctuate.
Opportunity cost refers to the cost of letting one alternative go for the opting of the other. This implies prioritization and weighing the loss against the gain of each alternative. For example, the choice of working professionally instead of studying further or comparing the pros
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The total revenue obtained from fines= $75 (price) and the inspectors issue 0.7 fines in one hour. Revenues= price x quantity. Expected return for an hour’s work = 0.7 x75= $ 52.5 b) Assume that Deakin’s parking inspectors are paid $35 an hour for checking cars for permits.
However, it is important to note that there are many pareto optimal outcomes. Both X and Y isoquants can be shifted without reducing the return from the other, or there could be an adjustment for an increase in both (Dwivedi, 2002 537). Question #2: The Coase theorem describes economic efficiency in the presence of externalities.
This essay deals about macroeconomic conditions and its impact to Carphone Warehouse, a leading retailer of electronics, mobile communication facilities and accessories based in United Kingdom. Understanding Macroeconomics Economist use long-run growth and short run business-cycle frameworks in understanding its macroeconomy’s supply and demand relation.
Due to the size of the company the firm has to be smart about its expansion plans. The reason the firm has to adequately plan its strategy is due to the competition. The competition in the consumer products is intense. The positioning strategy of the company can help the firm choose a way to present the company without drawing too much attention from the industry leaders.
Student’s Name Professor’s Name Macro & Micro economics December 10, 2011 Microeconomic Principles 1) In this speech I am going to talk about the virtues of private property / free market price systems. There are two types of economies, the command economy and the decentralized economy or free market.
This shows the impact of taxes on cigarettes. The tax is devised in such a way to discourage smoking that the consumption of cigarettes has decreased by 20% according to a report. The factors that affect the size of the tobacco market is the tax rate that is imposed on cigarettes in the country and the smoking habits of the newer younger generation as a result of anti-smoking campaigns (Mankiw, 2012, p.72).
However, this situation becomes problematic as equilibrium conditions can prove to be inefficient and unsatisfactory to other economic participants. Thus, it is deemed appropriate to create policies patterned from economic theories in order to attain market efficiency.
For example, the product line can be very differentiated or innovative, the appealing marketing campaigns, the exclusivity of the service, and, of course, the price should be maintained lower than competitors. Nevertheless, the lowering of
The law of Supply and Demand states the relationship between the supply of a product and demand for the product. The law defines the effect of availability of a particular product and the demand for the product has
Of course, this is the highest sold stock in this portfolio. The next performing stock was that of CVM. The number of shares sold in CVM was 5295, each at US$ 1.33. For JCP, the major transaction for the
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