...File C5-207 July 2007 www.extension.iastate.edu/agdm Elasticity of Demand E lasticity of demand is an important variation on the concept of demand. Demand can be classified as elastic, inelastic or unitary. An elastic demand is one in which the change in quantity demanded due to a change in price is large. An inelastic demand is one in which the change in quantity demanded due to a change in price is small. The formula for computing elasticity of demand is: (Q1 – Q2) / (Q1 + Q2) (P1 – P2) / (P1 + P2) If the formula creates a number greater than 1, the demand is elastic. In other words, quantity changes faster than price. If the number is less than 1, demand is inelastic. In other words, quantity changes slower than price. If the number is equal to 1, elasticity of demand is unitary. In other words, quantity changes at the same rate as price. Close substitutes for a product affect the elasticity of demand. It another product can easily be substituted for your product, consumers will quickly switch to the other product if the price of your product rises or the price of the other product declines. For example, beef, pork and poultry are all meat products. The declining price of poultry in recent years has caused the consumption of poultry to increase, at the expense of beef and pork. So products with close substitutes tend to have elastic demand. Figure 1. Elastic demand Elastic Demand Elasticity of demand is illustrated in Figure 1. Note that a change in price...
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...File C5-207 July 2007 www.extension.iastate.edu/agdm Elasticity of Demand E lasticity of demand is an important variation on the concept of demand. Demand can be classified as elastic, inelastic or unitary. An elastic demand is one in which the change in quantity demanded due to a change in price is large. An inelastic demand is one in which the change in quantity demanded due to a change in price is small. The formula for computing elasticity of demand is: (Q1 – Q2) / (Q1 + Q2) (P1 – P2) / (P1 + P2) If the formula creates a number greater than 1, the demand is elastic. In other words, quantity changes faster than price. If the number is less than 1, demand is inelastic. In other words, quantity changes slower than price. If the number is equal to 1, elasticity of demand is unitary. In other words, quantity changes at the same rate as price. Close substitutes for a product affect the elasticity of demand. It another product can easily be substituted for your product, consumers will quickly switch to the other product if the price of your product rises or the price of the other product declines. For example, beef, pork and poultry are all meat products. The declining price of poultry in recent years has caused the consumption of poultry to increase, at the expense of beef and pork. So products with close substitutes tend to have elastic demand. Figure 1. Elastic demand Elastic Demand Elasticity of demand is illustrated in Figure 1. Note that a change in price...
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...Chapter 6: CPU Scheduling • • • Basic Concepts Scheduling Criteria Scheduling Algorithms Operating System Concepts 6.1 Basic Concepts • Maximum CPU utilization obtained with multiprogramming. • CPU–I/O Burst Cycle – Process execution consists of a cycle of CPU execution and I/O wait. – Example: Alternating Sequence of CPU And I/O Bursts – In an I/O – bound program would have many very short CPU bursts. – In a CPU – bound program would have a few very long CPU bursts. Operating System Concepts 6.2 1 CPU Scheduler • The CPU scheduler (short-term scheduler) selects from among the processes in memory that are ready to execute, and allocates the CPU to one of them. • A ready queue may be implemented as a FIFO queue, priority queue, a tree, or an unordered linked list. • CPU scheduling decisions may take place when a process: 1. Switches from running to waiting state (ex., I/O request). 2. Switches from running to ready state (ex., Interrupts occur). 3. Switches from waiting to ready state (ex., Completion of I/O). 4. Terminates. • Scheduling under 1 and 4 is nonpreemptive; otherwise is called preemptive. • Under nonpreemptive scheduling, once the CPU has been allocated to a process, the process keeps the CPU until it releases the CPU either by terminating or by switching to the waiting state. Operating System Concepts 6.3 Dispatcher • Dispatcher module gives control of the CPU to the process selected by the short-term scheduler;...
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...Market 4 2 Budget Constraint 8 3 Preferences 10 4 Utility 14 5 Choice 18 6 Demand 24 7 Revealed Preference 27 8 Slutsky Equation 30 9 Buying and Selling 33 10 Intertemporal Choice 37 12 Uncertainty 39 14 Consumer Surplus 43 15 Market Demand 46 18 Technology 48 19 Profit Maximization 52 20 Cost Minimization 54 21 Cost Curves 57 22 Firm Supply 59 23 Industry Supply 62 24 Monopoly 64 2 25 Monopoly Behavior 67 26 Factor Market 72 27 Oligopoly 76 28 Game Theory 80 30 Exchange 85 3 Ch. 1. The Market I. Economic model: A simplified representation of reality A. An example – Rental apartment market in Shinchon: Object of our analysis – Price of apt. in Shinchon: Endogenous variable – Price of apt. in other areas: Exogenous variable – Simplification: All (nearby) Apts are identical B. We ask – How the quantity and price are determined in a given allocation mechanism – How to compare the allocations resulting from different allocation mechanisms II. Two principles of economics – Optimization principle: Each economic agent maximizes its objective (e.g. utility, profit, etc.) – Equilibrium principle: Economic agents’ actions must be consistent with each other III. Competitive market A. Demand – Tow consumers with a single-unit demand whose WTP’s are equal to r1 and r2 (r1 < r2 ) p r2 r1 1 2 – Many people 4 ...
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...Case Studies 1. SOLUTION TO STARTING RIGHT CASE, CH. 3, PAGE 110 This is a decision-making-under-uncertainty case. There are two events: a favorable market (event 1) and an unfavorable market (event 2). There are four alternatives, which include do nothing (alternative 1), invest in corporate bonds (alternative 2), invest in preferred stock (alternative 3), and invest in common stock (alternative 4). The decision table is presented. Note that for alternative 2, the return in a good market is $30,000 (1 + 0.13)5 = $55,273. The return in a good market is $120,000, (4 x $30,000) for alternative 3, and $240,000, (8 x $30,000) for alternative 4. Payoff table Laplace Event 1 Alternativ e1 Alternativ e2 Alternativ e3 Alternativ e4 0 55,273 Event 2 0 – 10,00 0 – 15,00 0 – 30,00 0 Average Value 0.0 22,636.5 Minimu m 0 – 10,000 – 15,000 – 30,000 Maximu m 0 55,273 Hurwicz Value 0.00 – 2,819.9 7 –150.00 120,00 0 240,00 0 52,500.0 120,000 105,000. 0 240,000 –300.00 Regret table Maximum Alternative Alternative 1 Alternative 2 Alternative 3 Alternative 4 Event 1 240,000 184,727 120,000 0 Event 2 0 10,000 15,000 30,000 Regret 240,000 184,727 120,000 30,000 a. Sue Pansky is a risk avoider and should use the maximin decision approach. She should do nothing and not make an investment in Starting Right. b. Ray Cahn should use a coefficient of realism of 0.11. The best decision is to do nothing. c. Lila Battle should eliminate alternative 1 of doing nothing and apply the maximin...
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...Case Studies 1. SOLUTION TO STARTING RIGHT CASE, CH. 3, PAGE 110 This is a decision-making-under-uncertainty case. There are two events: a favorable market (event 1) and an unfavorable market (event 2). There are four alternatives, which include do nothing (alternative 1), invest in corporate bonds (alternative 2), invest in preferred stock (alternative 3), and invest in common stock (alternative 4). The decision table is presented. Note that for alternative 2, the return in a good market is $30,000 (1 + 0.13)5 = $55,273. The return in a good market is $120,000, (4 x $30,000) for alternative 3, and $240,000, (8 x $30,000) for alternative 4. Payoff table Laplace Hurwicz Event 1 Event 2 Average Value Minimu m Maximu m Value Alternativ e1 0 0 0.0 0 0 0.00 Alternativ e2 55,273 – 10,00 0 22,636.5 – 10,000 55,273 – 2,819.9 7 Alternativ e3 120,00 0 – 15,00 0 52,500.0 – 15,000 120,000 –150.00 Alternativ e4 240,00 0 – 30,00 0 105,000. 0 – 30,000 240,000 –300.00 Regret table Maximum Alternative Event 1 Event 2 Regret Alternative 1 240,000 0 240,000 Alternative 2 184,727 10,000 184,727 Alternative 3 120,000 15,000 120,000 Alternative 4 0 30,000 30,000 a. Sue Pansky is a risk avoider and should use the maximin decision approach. She should do nothing and not make an investment in Starting...
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...Al-Nasser | 20092446 | Problem Al Kobaisi Group is a ready mix company which has three plants in various locations among Kingdom of Bahrain. They signed a contract with Al-Moayed contracting to supply them with concrete mix for three different projects located at three different areas. The following tables show the amount of concrete mix each plant can provide and required quantities for each project: Al Kobaisi Group Plants | Supply | P1 | 200 m3/day | P2 | 450 m3/day | P3 | 325 m3/day | Project Name | Demand | M1 | 100 m3/day | M2 | 375 m3/day | M3 | 500 m3/day | Al Kobaisi Group will rent the trucks from a transportation company to transfer the concrete mix from the plants to the sites. Sales manager of Al Kobaisi Group wants to know the optimum way of assignment of trucks in which the cost will be minimum. Use the below table in order to help the manager in taking the decision using one of the L.P models. P/M | M1 | M2 | M3 | Supply | P1 | 20 | 5 | 13 | 200 | P2 | 9 | 18 | 7 | 450 | P3 | 11 | 16 | 23 | 325 | Demand | 100 | 375 | 500 | | In order to solve the above mentioned problem we are going to use transportation model. However, before starting the solution a brief description of the model will be illustrated as follow: Transportation Problem Many practical problems in operations research can be broadly formulated as linear programming problems, for which the simplex this is a general...
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...Candidate | | | Unit No. | Unit 5 ; Unit 2 ; Unit 18 | | Unit Name | Business accounting, Business resources and managing a business event | * | Qualification | Btec Level 3 | | Start Date | September 2013 | | Deadline | November 2013 | | Assessor | Maria Pillay | | Unit 5 – Business accounting | | | Criteria | To achieve the criteria the evidence must show that the student is able to: | Page No. | Achieved? | P1 | Describe the purpose of accounting for an organisation | | | P2 | Explain the difference between capital and revenue items of expenditure and income | | | P3 | Prepare a 12 month cash flow forecast to enable an organisation to manage its cash | | | P4 | Prepare a profit and loss account and balance sheet for a given organisation | | | P5 | Perform ration analysis to measure the profitability and liquidity and efficacy of a given organisation | | | M1 | Analyse the cash flow problems a business might experience | | | M2 | Analyse the performance of a business using suitable ratios | | | D1 | Justify actions a business might take when experiencing cash flow problems | | | D2 | Evaluate the financial performance ad position of a business using ratio analysis | | | Unit 2 – Business resources | | | Criteria | To achieve the criteria the evidence must show that the student is able to: | Page No. | Achieved? | P1 | Describe the recruitment...
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...ECONOMICS 247 ASSIGNMENT 1 VERSION B 1a. The study of economics is the study of how society manages its scarce resources. If however, this was no longer the case and scarcity disappeared, then the study of economics would cease to exist. There would be no point in tracking how society manages its resources if everyone can get exactly what they wanted. Opportunity cost would also cease to exist due to the fact that there would be no more scarcity. Opportunity cost is the cost of the choice that the consumer makes in terms of what the consumer must give up to get it. If everyone can get what they wanted due to the unlimited resources then consumers wouldn`t have to make choices. b. The difference between a “change in supply” and “a change in quantity supplied” is that one is a shift in the supply curve and the other is a movement along the supply curve. A change in supply is a shift in the supply curve and a change in quantity supplied is a movement along a fixed supply curve. 2a. Microeconomics studies “the impact of a change in consumer income on the purchase of luxury automobiles” b. Microeconomics studies “the effect of a change in the price of Coke on the purchase of Pepsi” c. Macroeconomics studies “the impact of a war in the Middle East on the rate of inflation in Canada” d. Macroeconomics studies “factors influencing the rate of economic growth” 3a. The determinant of supply that has an impact is change in technology. The cost of producing hot chocolate is reduced...
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...CPU SCHEDULINGCPU scheduling in UNIX is designed to benefit interactive processes. Processes are given small CPU time slices by a priority algorithm that reduces to round-robin scheduling for CPU-bound jobs.The scheduler on UNIX system belongs to the general class of operating system schedulers known as round robin with multilevel feedback which means that the kernel allocates the CPU time to a process for small time slice, preempts a process that exceeds its time slice and feed it back into one of several priority queues. A process may need much iteration through the "feedback loop" before it finishes. When kernel does a context switch and restores the context of a process. The process resumes execution from the point where it had been suspended.Each process table entry contains a priority field. There is a process table for each process which contains a priority field for process scheduling. The priority of a process is lower if they have recently used the CPU and vice versa.The more CPU time a process accumulates, the lower (more positive) its priority becomes, and vice versa, so there is negative feedback in CPU scheduling and it is difficult for a single process to take all the CPU time. Process aging is employed to prevent starvation.Older UNIX systems used a 1-second quantum for the round- robin scheduling. 4.33SD reschedules processes every 0.1 second and recomputed priorities every second. The round-robin scheduling is accomplished by the -time-out mechanism, which tells...
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...Portfolio Modeling and Evaluation: Beating the Market ABSTRACT During the period of 2005 to 2010, the market portfolio (P1) and one suggested portfolio (P3) post a positive absolute return of 0.80% and 0.82% respectively which underperformed the active fund portfolio (P2) 0.91%. This report follows various modeling methods in order to back test the performance of the active fund portfolio and compare its performance with that of two other portfolios. The findings indicate that, even though P2 achieves the highest return on the overall performance, the limitations such as the macro environment, the assumptions set, and the Shrinkage method used that accidentally downsizes some valuable stocks in out-‐samples as they are closely correlated are being ignored. By contrast, P3 will probably offer a “middle-‐choice” which will bring a promising and more stable return. 1 Portfolio...
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...BTEC National Certificate in Business Management Unit 18 – Managing a Business Event Assignment 1 (P1 & M1): - Role of an event organiser / Organisational and legal requirements You are part of the ASFC student council. The council wants to organise an event for the students and you have been asked to research how events are run by other organisations. You must present your findings in a report format, which needs to be addressed to the Principle. You should structure your report as outlined below in tasks 1 and 2. This assignment assesses: P1 Describe the role and skills required of an event organiser. M1 Assess the importance of meeting organisational and legal requirements when planning a business event Signed (IV) ___________________________________________ Print name ___________________________________________ |P1 | | | |Based on the visit to JD Williams in Manchester and the presentation by their Event Organiser, you need to describe the| | |role of an Event Organiser. | | | | | |Task 1 - In your report include the following: ...
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...is lower than that of its trading partner. 1.1 Technology and markets The Ricardian model assumes that production uses only 1 input (labor), with constant returns to scale. This assumption means that the technology in each country and each sector is entirely determined by the labor requirement per unit of output. The other assumptions are that (a) labor moves freely between sectors within a country, but (b) labor cannot move between countries. Assumption (a) implies that in a particular country, the wage must be the same in both sectors; assumption (b) means that the wage need not be the same (and typically is not the same) in the two countries. In addition, all agents are price takers, i.e. there is perfect competition. In my example, the unit labor requirements are unit labor requirement Corn (good 1) US Canada au = 1 1 Umbrellas (good 2) au = 1 2 ac = 3 ac = 6 1 2 Table 1, Labor requirements 1 (Corn is good 1, umbrellas are good 2. Subscripts indicate commodity, superscripts indicate country.) I assume that both goods require one unit of labor to produce one unit of output in the US. This assumption is without loss of generality; it merely amounts to a choice of units....
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...Chapter 5: CPU Scheduling Operating System Concepts – 8th Edition Silberschatz, Galvin and Gagne ©2009 Chapter 5: CPU Scheduling Basic Concepts Scheduling Criteria Scheduling Algorithms Thread Scheduling Multiple-Processor Scheduling Operating Systems Examples Algorithm Evaluation Operating System Concepts – 8th Edition 5.2 Silberschatz, Galvin and Gagne ©2009 Objectives To introduce CPU scheduling, which is the basis for multiprogrammed operating systems To describe various CPU-scheduling algorithms To discuss evaluation criteria for selecting a CPU-scheduling algorithm for a particular system Operating System Concepts – 8th Edition 5.3 Silberschatz, Galvin and Gagne ©2009 Basic Concepts Maximum CPU utilization obtained with multiprogramming CPU–I/O Burst Cycle – Process execution consists of a cycle of CPU execution and I/O wait CPU burst distribution Operating System Concepts – 8th Edition 5.4 Silberschatz, Galvin and Gagne ©2009 Alternating Sequence of CPU and I/O Bursts Operating System Concepts – 8th Edition 5.5 Silberschatz, Galvin and Gagne ©2009 Histogram of CPU-burst Times Operating System Concepts – 8th Edition 5.6 Silberschatz, Galvin and Gagne ©2009 CPU Scheduler Selects from among the processes in ready queue, and allocates the CPU to one of them Queue may be ordered in various ways Switches from running to waiting state Switches from running...
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...Refer to Figure 6 below Figure 6 [pic] a. Equilibrium price and quantity before trade would be ▪ Price = $14; ▪ Quantity = 600 b. The price and domestic quantity demanded after trade would be ▪ Price = $ 18; ▪ Domestic quantity demanded = 400 c. After trade domestic production would be ▪ Domestic production = 800 d. How much of this product would be exported after trade ▪ Amount exported = 800 - 400 = 400 e. Calculate the consumer surplus before trade ▪ CS before trade = (26-14)*600*0.5 = 3600 f. Calculate the consumer surplus after trade ▪ CS after trade = (26-18)*400*0.5 = 1600 g. Calculate the producer surplus before trade ▪ PS before trade = (14-3)*600*0.5 = 3300 h. Calculate the producer surplus after trade ▪ PS after trade = (18-3)*800*0.5 = 6000 i. Calculate the net effect of trade on total surplus ▪ Net effect of trade = change in PS - change in CS = (2700- 2000) = 700 Note: An alternative and correct way to compute this is to calculate the area of the triangle showing the gain in surplus. This area is (18-14)*400*0.5 = 800. This is different from 700 because of a slight mislabeling of the diagram. Therefore award the full points for this answer as well. Question 2 a. What are opportunity costs? ▪ The opportunity cost of an item...
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