...Market Equilibrating Process ECO/561 - Economics , Instructor This paper will explore the market equilibrating process and relate this process to a personal experience that has occurred in my life. According to the assigned reading, the equilibrium price for a product is the price at which the demand and supply curves intersect. In competitive markets, prices that are higher than the equilibrium price will result in a surplus and the market price will fall. When the market price is lower than the equilibrium price, a shortage will exist and the market price will rise. The equilibrium price is stable under existing demand and supply conditions. At equilibrium, no tendency for price to change is expected. Changes in supply or demand will cause predictable changes in both the equilibrium price and quantity. (McConnell, Brue, & Flynn,2009). To find market equilibrium, the two curves are combined on one graph. The place of meeting point of supply and demand indicates the equilibrium point. Unless interfered with, the market will remain at this quantity and price. At the point of connection, sellers and buyers see eye to eye on the quantity and price. Relating this process to my personal life experience, I look at the housing marketing. I worked for five years as a licensed Real Estate Agent. When I started in the business, it was booming. It was definitely a seller’s market. The demand was high for mega houses, condominiums and investment properties...
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...Marketing Equilibration Process Paper ECO/561 Marketing Equilibration Process Paper The market equilibrating process is the method or methods in which manufacturers tend on maintaining a balance between supply and demand reaching equilibrium. This is help by using competition between and among buyers and sellers sets off equilibrium process. For example firms with excess inventories cut prices to try to undersell their competition. As the price falls, quantity demanded rises, and quantity supplied falls. Buyers competing with one another for goods in short supply bid up price to try to capture some of the good as price goes up, demand falls and supply rises (McConnell, 2009). I think looking at an electronic device is a perfect example. Take the IPhone, the new versions are always in demand but the old versions are easily replaced. When AT&T had a monopoly on the IPhone other companies tried to put out products like the droid or update the blackberry so that it was able to compete with AT&T. Now that AT&T does not have the sole contract for this device there is still a demand but it is across the board and not solely with one company. The law of demand also affects the market equilibrating process. The law of demand in theory says that there is a negative relation between price and quantity demanded. For example if price goes up, quantity demanded goes down; if price goes down, quantity demanded goes up (McConnell, 2009). This can be seen when an IPhone was brand...
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...2007, my business partner and I decided to get into the business of selling different types and brands of glasses. We purchased 1,000 glasses a month at about $4 a piece and the goal was to sell all the glasses every month. The price for these glasses started at $40 each. Based on our research on sites such as craigslist and ebay, we realized that the demand for shades was pretty high, in spite of this, our sales were very low. We experienced a big surplus since we had way more inventory than customers wanting to buy our glasses or more supply than demand. Surplus is the extent to which generation of goods, services and resources (such as capital) exceeds their consumption. After doing a bit more research, we decided to use different marketing tools and strategies to see if that would help improve sales and had no luck. We then started looking at our competitors and realized that not only were they having more success that us, but their prices were much lower and it was then when we realized that lowering the prices could be a solution. My partner and I decided to play with the numbers a little. During holidays, we offered 75% discounts so customers could buy a pair for $10. The first trial was close to Christmas and within two weeks all shades were sold so we then realized that if we were to continue these holiday sales, we would experience shortage or have less supply than what is demanded. An economic shortage is a disparity between the amount demanded for a product or...
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...Economics Principals and Law of Demand Economics is the social science that examines how individuals, institutions, and society make optimal choices under conditions of scarcity, (McConnell, Brue, & Flynn, 2009). The first economic concept that I would like to discuss is demand. Demand is a schedule or a curve that shows the various amounts of a product that consumers are willing and able to purchase at each of a series of possible prices during a specified period of time. Demand shows the quantities of a product that will be purchased at various possible prices; other things equal (McConnell, Flynn 2009). A Good example might be our current market for organic foods. Everyone is looking to eat healthier nowadays and one supplier catering to this market is called Whole Foods. Whole Foods was a innovative industry because it came up with the idea of organic products and it was a inelastic company at one time. Whole Foods was the world's leading retailer of natural and organic foods. Whole Foods so far has been able to corner the market and obtain most of the sales in this industry. As everyone knows its prices have been known to be extremely high. The competitors have moved in with lower prices and similar quality products making Whole Foods loose market value and become a elastic industry with more substitutes to choose from. An important characteristic of demand indicates that as price falls, the quantity demanded rises and as the price increases, the quantity demanded...
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...| Syllabus School of Business ECO/561 Version 7 Economics | Copyright © 2012, 2011, 2010, 2009, 2008 by University of Phoenix. All rights reserved. Course Description This course applies economic concepts to make management decisions. Students employ the concepts of scarce resources and opportunity costs to perform economic analysis. Other topics include supply and demand, profit maximization, market structure, macroeconomic measurement, money, trade, and foreign exchange. Policies Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents: University policies: You must be logged into the student website to view this document. Instructor policies: This document is posted in the Course Materials forum. University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies may be slightly different depending on the modality in which you attend class. If you have recently changed modalities, read the policies governing your current class modality. The discussion question points are now combined with the participation points for each week. You, as the instructor, may create a separate line item for discussion question points if you choose. Please note that some assignment points may have changed. Course Materials Ball, L. M. (2009). Money, banking, and financial markets. New York, NY: Worth Publishers. McConnell...
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...1 PED401. Applications and Cases in International Development Teaching Notes 1 The Big Push: what does it mean, and does it make sense for Ethiopia? The idea of the Big Push is one of the earliest in development economics, coined by Rosenstein-Rodan over 60 years ago in the context of a classic work on “the problem of industrialization of eastern and south-eastern Europe”. The core argument is that coordination problems, in the context of increasing returns, create the possibility of multiple equilibria. A poor country can be caught in a low-equilibrium “poverty trap”, government intervention can potentially solve the coordination problem, and “push” the economic into the better equilibrium allowing a “take-off” into sustained growth. The Big Push idea has returned to the center of development policy in the recent past. William Easterly (2006) described 2005 as the Year of the Big Push. It has done so in particular in the context of debates over Africa: the compelling normative case to transform development possibilities of Africans, has been associated with renewed emphasis on the positive case for a Big Push. This has been linked to the case for a major expansion in aid, notably in the work of the Commission for Africa and the Millennium Development Goals; Jeffrey Sachs has been a vigorous exponent of this linkage. This case concerns the analytics of the Big Push, the evidence and its applicability to a poor African country. It bridges issues of growth (from macro)...
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...A PROJECT REPORT ON COPPER: THE BROWN GOLD Submitted to the Mumbai University in partial fulfillment of the requirement for the award of M.M.S. Degree GUIDE MR. SANJIV BARVE by SURESH CHANDRAN MMS - FINANCE ATHARVA INSTITUTE OF MANAGEMENT STUDIES MALAD-MARVE ROAD, MALAD (WEST), MUMBAI 400095 BATCH 2006-2008 CERTIFICATE This is to certify that the project entitled “COPPER: THE BROWN GOLD” is the bonafide work carried out by Mr. Suresh Chandran, student of M.M.S. Batch 2006-2008, Atharva Institute of Management Studies, during the year 2007-2008 in partial fulfillment of the requirements for the Post Graduate Degree of Master of Management Studies and that the project has not formed the basis for the award of any other degree, associate-ship, fellowship or any other similar titles. Sd/- Mr. Sanjiv Barve Project Guide & Faculty Member Atharva Institute of Management Studies Date: Place: ACKNOWLEDGEMENT I would like to take this opportunity to express my sincere and heart-felt gratitude towards my institute, Atharva Institute of Management studies for giving me this wonderful experience to guide my first steps into a Career in Finance. I express my appreciation towards our Dean, Mr. N. S. Rajan, who believed in me and provided me with a great learning canvass to expand my perspectives and learning horizons. I offer my sincerest thanks to my eternal academic guiding star, Mr. Sanjiv Barve, my project guide for his immense help. His guidance...
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...CDE January 2011 UNDERSTANDING NREGA: A SIMPLE THEORY AND SOME FACTS Diganta Mukherjee Email: digantam@hotmail.com Unitedworld School of Business Kolkata Uday Bhanu Sinha Email: uday@econdse.org Delhi School of Economics University of Delhi Working Paper No. 196 Centre for Development Economics Department of Economics, Delhi School of Economics Understanding NREGA: A Simple Theory and Some Facts * Diganta Mukherjee # and Uday Bhanu Sinha Abstract A developing economy like India is often characterised by a labour market with demand and supply of labour and a wage that even if competitively determined may not be adequate for the poor household to reach their target income; what they consider as means of a decent living. Envisaging situations like these, the Indian government has implemented the National Rural Employment Guarantee Act (NREGA) in recent past, to complement the income of the poor by providing them employment for certain number of labour days in a year. In this paper, using a simple theoretical model, we have analysed the impact of NREGA scheme on (i) rural labour market, (ii) income of the poor households and (iii) overall agricultural production. It is seen that the income from NREGA alone can be a substantial part of the target income of the poor. We show that in such a situation, the poor may exhibit a backward bending supply curve of labour which may lead to an aggregate reduction in agricultural output. This adverse production effect...
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...D haka is ranked as one of the least liveable cities in the world, according to the Economist Intelligence Unit. Similarly, foreign visitors are sometimes left aghast at how, in Malthusian terms, the capital of Bangladesh manages to survive. Yet this host city for the upcoming T20 Cricket World Cup has, some would say, not only survived but prospered in recent years. * * * * More On this topic * Jeans maker backs push on ethical factories * Jeans maker launches push on ethical factories * Rana Plaza collapse one year on * Death sentences deepen Bangladesh political hostility IN International Property * Cape Town — return of the trophy hunters * Bund and beyond — Shanghai’s riverfront market * Rise of London’s superhomes * Strong housing market puts Atlanta in a new light Sign up now FirstFT is our new essential daily email briefing of the best stories from across the web “If you brought a property in Dhanmondi [one of the most affluent residential areas in Dhaka] for 6.45m taka [$83,000] in 2005, that would have increased five or six times by now,” says Kazi Inam Ahmed, owner of Gemcon City, a new estate agency. In fact, Goldman Sachs has placed Bangladesh in the “next 11’” category after the Bric countries and its “Mint” (Mexico, Indonesia, Nigeria and Turkey) group as an emerging economy. Furthermore, from out of its bewildering, densely packed capital, properties are now starting to emerge that can match such aspirations...
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...Review of Marketing Research Review of Marketing Research VOLUME 1 Naresh K. Malhotra Editor M.E.Sharpe Armonk, New York London, England 4 AUTHOR Copyright © 2005 by M.E.Sharpe, Inc. All rights reserved. No part of this book may be reproduced in any form without written permission from the publisher, M.E. Sharpe, Inc., 80 Business Park Drive, Armonk, New York 10504. Library of Congress ISSN: 1548-6435 ISBN 0-7656-1304-2 (hardcover) Printed in the United States of America The paper used in this publication meets the minimum requirements of American National Standard for Information Sciences Permanence of Paper for Printed Library Materials, ANSI Z 39.48-1984. ~ MV (c) 10 9 8 7 6 5 4 3 2 1 CHAPTER TITLE 5 REVIEW OF MARKETING RESEARCH EDITOR: NARESH K. MALHOTRA, GEORGIA INSTITUTE OF TECHNOLOGY Editorial Board Rick P. Bagozzi, Rice University Ruth Bolton, Arizona State University George Day, University of Pennsylvania Morris B. Holbrook, Columbia University Michael Houston, University of Minnesota Shelby Hunt, Texas Tech University Dawn Iacobucci, Northwestern University Arun K. Jain, University at Buffalo, State University of New York Barbara Kahn, University of Pennsylvania Wagner Kamakura, Duke University Donald Lehmann, Columbia University Robert F. Lusch, University of Arizona Kent B. Monroe, University of Illinois, Urbana A. Parasuraman, University of Miami William Perreault, University of North Carolina Robert A. Peterson, University...
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...SIGNALLING, STRATEGY & MANAGEMENT TYPE Introducing Framework T3 and GEMS for Business Strategy Patrick A. McNutt The usual disclaimer applies. The views expressed here are those of the author This is an E-book. It is available in camera copy format with free download from www.patrickmcnutt.com. December 2008 ACKNOWLEDGEMENTS Thank you for reading the E-book and making a contribution to the charity as identified on my web portal. The E-book can be read independently or in conjunction with the Kaelo v2.0 software tool. Some of the arguments are filtered from McNutt (2005): Law, Economics and Antitrust and from books referenced in the E-book. There are indeed numerous references and secondary readings recommended in the E-book. These should be read as well. They will be fully referenced as we continue together to write this E-book on the web. Interesting books on related themes to read are Roberts (2004): The Modern Firm: Games, Strategies and Managers and Nalebuff and Dixit (2008): The Art of Strategy. For my MBA students you will be reading either Baye (2008): Managerial Economics and Business Stratagy or Besanko (2007): Economics of Strategy. For clients using my services, a note of thanks and for management in general who may happen upon this E-book a set of business slides are available as one set called Framework T3 and GEMS which is available from the author. They will appear also on my web page. Please email your comments to me via my web portal at www.patrickmcnutt.com...
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...SIGNALLING, STRATEGY & MANAGEMENT TYPE Introducing Framework T3 and GEMS for Business Strategy Patrick A. McNutt The usual disclaimer applies. The views expressed here are those of the author This is an E-book. It is available in camera copy format with free download from www.patrickmcnutt.com. December 2008 ACKNOWLEDGEMENTS Thank you for reading the E-book and making a contribution to the charity as identified on my web portal. The E-book can be read independently or in conjunction with the Kaelo v2.0 software tool. Some of the arguments are filtered from McNutt (2005): Law, Economics and Antitrust and from books referenced in the E-book. There are indeed numerous references and secondary readings recommended in the E-book. These should be read as well. They will be fully referenced as we continue together to write this E-book on the web. Interesting books on related themes to read are Roberts (2004): The Modern Firm: Games, Strategies and Managers and Nalebuff and Dixit (2008): The Art of Strategy. For my MBA students you will be reading either Baye (2008): Managerial Economics and Business Stratagy or Besanko (2007): Economics of Strategy. For clients using my services, a note of thanks and for management in general who may happen upon this E-book a set of business slides are available as one set called Framework T3 and GEMS which is available from the author. They will appear also on my web page. Please email your comments to me via my web portal at www.patrickmcnutt...
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...THE GREAT RECESSION Since publication of Robert L. Hetzel’s he Monetary Policy of the Federal Reserve (Cambridge University Press, 2008), the intellectual consensus that had characterized macroeconomics has disappeared. hat consensus emphasized eicient markets, rational expectations, and the eicacy of the price system in assuring macroeconomic stability. he 2008–2009 recession not only destroyed the professional consensus about the kinds of models required to understand cyclical luctuations but also revived the credit-cycle or asset-bubble explanations of recession that dominated thinking in the nineteenth century and irst half of the twentieth century. hese “market-disorder” views emphasize excessive risk taking in inancial markets and the need for government regulation. he present book argues for the alternative “monetary-disorder” view of recessions. A review of cyclical instability over the last two centuries places the 2008–2009 recession in the monetary-disorder tradition, which focuses on the monetary instability created by central banks rather than on a boom-bust cycle in inancial markets. Robert L. Hetzel is Senior Economist and Research Advisor in the Research Department of the Federal Reserve Bank of Richmond, where he participates in debates over monetary policy and prepares the bank’s president for meetings of the Federal Open Market Committee. Dr. Hetzel’s research on monetary policy and the history of central banking has appeared in publications...
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...ECONOMIC GEOGRAPHY Y U K O A O YA M A J A M E S T. M U R P H Y SUSAN HANSON KEY CONCEPTS IN key concepts in economic geography The Key Concepts in Human Geography series is intended to provide a set of companion texts for the core fields of the discipline. To date, students and academics have been relatively poorly served with regards to detailed discussions of the key concepts that geographers use to think about and understand the world. Dictionary entries are usually terse and restricted in their depth of explanation. Student textbooks tend to provide broad overviews of particular topics or the philosophy of Human Geography, but rarely provide a detailed overview of particular concepts, their premises, development over time and empirical use. Research monographs most often focus on particular issues and a limited number of concepts at a very advanced level, so do not offer an expansive and accessible overview of the variety of concepts in use within a subdiscipline. The Key Concepts in Human Geography series seeks to fill this gap, providing detailed description and discussion of the concepts that are at the heart of theoretical and empirical research in contemporary Human Geography. Each book consists of an introductory chapter that outlines the major conceptual developments over time along with approximately twenty-five entries on the core concepts that constitute the theoretical toolkit of geographers working within a specific subdiscipline. Each entry provides...
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...Secular Stagnation: Facts, Causes and Cures Edited by Coen Teulings and Richard Baldwin CEPR Press a A VoxEU.org Book Secular Stagnation: Facts, Causes, and Cures A VoxEU.org eBook Centre for Economic Policy Research (CEPR) Centre for Economic Policy Research 3rd Floor 77 Bastwick Street London, EC1V 3PZ UK Tel: +44 (0)20 7183 8801 Email: cepr@cepr.org Web: www.cepr.org ISBN: 978-1-907142-77-2 © CEPR Press, 2014 Secular Stagnation: Facts, Causes, and Cures A VoxEU.org eBook edited by Coen Teulings and Richard Baldwin CEPR Press abcde Centre for Economic Policy Research (CEPR) The Centre for Economic Policy Research (CEPR) is a network of almost 900 research economists based mostly in European universities. The Centre’s goal is twofold: to promote world-class research, and to get the policy-relevant results into the hands of key decision-makers. CEPR’s guiding principle is ‘Research excellence with policy relevance’. A registered charity since it was founded in 1983, CEPR is independent of all public and private interest groups. It takes no institutional stand on economic policy matters and its core funding comes from its Institutional Members and sales of publications. Because it draws on such a large network of researchers, its output reflects a broad spectrum of individual viewpoints as well as perspectives drawn from civil society. CEPR research may include views on policy, but the Executive Committee of the Centre does not give prior...
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