Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Economics


Home >> Microeconomics

Assignment: Effects of Price Changes

Price changes can have a significant impact on the overall economy of a nation. A product experiencing price change can lead to an exponential change in the prices of related products. The price of oil provides a good example of this concept. As oil prices increase, the price of gasoline also increases. As almost all products rely on gasoline, either in the production process or in the distribution process, the prices of these products also increase. As prices increase and incomes of consumers remain steady, spending decreases and products or services that have an elastic demand suffer. This assignment looks at some products you may be familiar with and allows you to analyze how price changes impact the overall economy.

Tasks:

Consider the last product or service you purchased for more than $50, excluding gasoline.

• If the price of that product or service went up by 10% overnight, how would you adjust your behavior in the short term?
• How would you adjust your behavior in the long term?
• If you decide not to buy this product again, what will you buy instead?
• Analyze who will be more sensitive to price changes in what kind of products.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M92013942
  • Price:- $30

Priced at Now at $30, Verified Solution

Have any Question?


Related Questions in Microeconomics

Question 1 the demand for labor by an industry is given by

Question: 1. The demand for labor by an industry is given by the curve L = 1200 - 10w, where L is the labor demanded per day and w is the wage rate. The supply curve is given by L = 20w. What is the equilibrium wage rate ...

Question suppose you want to hasten the transition from a

Question: Suppose you want to hasten the transition from a depletable fossil fuel to solar energy. Using graphs in your explanation, compare the effects of a per unit tax on the depletable resource to an equivalent per u ...

For each stock in the market the number of shares sold

For each stock in the market, The number of shares sold daily equals the number of shares purchased. that is, the quality of each firm's shares demanded equals the quantity supplied. So, if this equality always occurs, w ...

Question it appears that in the twenty-first century by far

Question: It appears that in the twenty-first century, by far the biggest increase in Federal spending will occur in increased medical care expenditures for the aged and the poor. If this does indeed turn out to be a pol ...

Quesiton in germany it takes three workers to make one

Quesiton: In Germany it takes three workers to make one television and four workers to make one video camera. In Poland it takes six workers to make one television and 12 workers to make one video camera. a. Who has the ...

Question consider the market for a software application

Question: Consider the market for a software application. There are 20 consumers who value technical support, which they can only receive if they purchase the application. There are 10 consumers who do not value technica ...

Question in the small closed economy of banana republic the

Question: In the small closed economy of Banana Republic, the currency is the dollar. Statistics for last year show that private saving was 60 billion dollars, taxes were 70 billion dollars, government purchases of goods ...

Question table shows how the average costs of production

Question: Table shows how the average costs of production for semiconductors (the "chips" in computer memories) change as the quantity of semiconductors built at that factory increases. a. Based on these data, sketch a c ...

Question read the following letter from a magazine

Question: Read the following letter from a magazine publisher: Dear Parent: Currently your Growing Child/Growing Parent subscription will expire with your 24-month issue. To renew on an annual basis until your child reac ...

Question joyce loves to work and loves earning money john

Question: Joyce loves to work and loves earning money. John loves relaxing and doesn't care about money. Assume that John and Joyce have the same wage of $10 per hour. (2pts) a. Graphically show a wage rate at which Joyc ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved