Economic of Apples over Price - Essay Example

TEMPLATE FOR Paper: ______________________ Assignment Your answer Points What is the price elasti of demand for apples -2 10/10 2. Show formula used to calculate price elasticity of demand and calculationsPrice Elasticity = (percentage change in quantity) / (percentage change in price)Price Elasticity = [(21-30)/30]/[(3.45-3)/3]Price Elasticity = -215/153. What does the result tell us about the elasticity of demand ExplainIf price increases by 1% and consumers respond by decreasing purchases by 2%, the equation computes the elasticity coefficient as -2.

The result is negative because the law of demand, defined later, is so. The result tells the demand is elastic and market reacts sharply to the price increase. The demand would have been inelastic if the price elasticity is less than 115/154. Define, in your own words, any economic terms relevant to the topic Law of DemandIncrease in price leads to decrease in demand and decrease in price leads to increase in demand. The vice versa also holds well. The law of demand says there is inverse relationship between price and demand.

So the price elasticity is always negative10/105. Bibliography (Citation of all sources in APA format: every assignment must have at least one citation)Edwin G. Dolan & David E.Lindsey(1991). Economics - 6th Edition. Dryden Press5/56. Points assigned for following template and submission file name requirements5/5Total60/60We make choices as consumers every day. Opportunity cost is defined as a person's "next best alternative" or "the cost of what you give up when you make a choice."I completed my Bachelors in Commerce last academic year.

The choices in front of me to continue my studies were Masters in Commerce of Masters in Business Administration. I opted for Master in Business Administration. My next best alternative was Masters in Commerce.I evaluated the money I will be spending in doing Masters in Commerce and Business Administration. Also I calculated the benefits (my salary) I will be drawing after my course. In Commerce I will learn more of trade and Accountancy. Whereas in Business Administration I will learn overview of business administration, management principles and strategies in managing the businesses.

My earnings as manager are more when compared to my earnings as Accountant. As a manager my learning, personality also grows. I can as well start my own venture.Business Administration gives more exposure to businesses around the world. Business administration is more practical and the approach is so. The choice to specialize in interested field is more with business administration. And job rotation is easier in Business administration. In my career I will managing businesses rather than do the tasks.

The job involves decision making and strategy making. And the horizon I would work on is broader. All this sounded interesting to me. Having strengths and interest in Business Administration I opted to do Masters in Business Administration. Doing Masters in Commerce would have made me a specialized accountant or managing trading activities of a firm. Doing Masters in Commerce would have been easier for me as I have done my Bachelors in the same Commerce. The cost of the course fee would have been much lower than what I will have to spend on doing Masters in Business Administration.

These are the opportunity costs I had to give up when I chose to do Masters in Business Administration.Revenues in terms of salaries as a Business Administration graduate will cover the costs I give up by not opting for Master in Commerce.