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Author: Johnny Ch Lok Publisher: ISBN: 9781661968793 Category : Languages : en Pages : 246
Book Description
Supply and demand and price elasticities principle predict oil energy user behaviourThe another case is that demand and supply principle can predict oil buyer behaviour to find whether what factors can cause the oil buyer individual need reduces. For example, a rise in production costs increases market prices and reduces quantities demanded and supplied. Or when, energy cost rise, utility bills increases and households fid extra ways of saving heating and electricity. But, others are nor. For example, whether a tax is imposed on the producers or consumer of a commodity, say oil has nothing to do with who ends up paying for it. The tax might be administered on oil companies, but it might be consumers who really pay for it through higher prices at the pump. Or the extra cost might be imposed on consumers in the form of a sale tax, but the oil companies might be forces to absorb it through lower prices. It all depends on the " price elasticities" of demand and supply. With the addition of extra assumption, this model also generates rather strong implications about how well markets work. In particular, a competitive market economy is efficient in the sense that it is impossible to improve one person's well-being without reducing somebody. Demand and supply principle can misuse to predict consumer behaviour when the two firms participate advertisement to promote their products in the same timeWhy can demand and supply principle misuse to predict consumer behaviour when the two firms participate advertisement to promote their products in the same time ? I shall explain as below: Assume that two competing firms must decide whether to have a big advertising budget. Advertising would allow one firm to steal some of the other's customers. But when they both advertise, the effects on customer demand cancel out. The firms end up having spent money needlessly.We might expect that neither firm would choose to spend much on advertising, but the model shows that this logic is off base. When the firms make their choices independently and they care only about their own profits, each one has an incentive to advertise, regardless of what the other firm does. When the other firm does not advertise, you can steal customers from it if you do advertise, when the other firm does advertise, you have to advertise to prevent loss of customers. So, these two firms end up in a bad equilibrium in which both have to waste resources. This market can not apply demand and supply principle to predict consumer behaviours because they depends advertisement to promote their products. If these two firms advertise their products in the same time. Then, it is not possible that if one firm increases it price and it will cause its customer number loss, due to its advertise can help it to attract customers to consider its product from television or radio or newspapers or magazine promotion channels. So, I suppose that these two firms decide to increase their price, when they advertise their products to let customers to know in the same time. They will not lose their customers or reduce their customers easily. Because their customers can be persuaded to choose to buy their products to compare other similar products in preference. So, their increasing price will not influence their customers number lose easily. It explains that demand and supply principle is not right to this case, so demand and supply principle can misuse to help them to predict consumer behaviours when they advertise their products in the same time. Also, demand and supply principle is not suitable to them to predict consumer behaviours when they advertise their products in the same time. They will do wrong prediction to their consumers purchase desire when they advertise their products in the same time.
Author: Johnny Ch Lok Publisher: ISBN: 9781661968793 Category : Languages : en Pages : 246
Book Description
Supply and demand and price elasticities principle predict oil energy user behaviourThe another case is that demand and supply principle can predict oil buyer behaviour to find whether what factors can cause the oil buyer individual need reduces. For example, a rise in production costs increases market prices and reduces quantities demanded and supplied. Or when, energy cost rise, utility bills increases and households fid extra ways of saving heating and electricity. But, others are nor. For example, whether a tax is imposed on the producers or consumer of a commodity, say oil has nothing to do with who ends up paying for it. The tax might be administered on oil companies, but it might be consumers who really pay for it through higher prices at the pump. Or the extra cost might be imposed on consumers in the form of a sale tax, but the oil companies might be forces to absorb it through lower prices. It all depends on the " price elasticities" of demand and supply. With the addition of extra assumption, this model also generates rather strong implications about how well markets work. In particular, a competitive market economy is efficient in the sense that it is impossible to improve one person's well-being without reducing somebody. Demand and supply principle can misuse to predict consumer behaviour when the two firms participate advertisement to promote their products in the same timeWhy can demand and supply principle misuse to predict consumer behaviour when the two firms participate advertisement to promote their products in the same time ? I shall explain as below: Assume that two competing firms must decide whether to have a big advertising budget. Advertising would allow one firm to steal some of the other's customers. But when they both advertise, the effects on customer demand cancel out. The firms end up having spent money needlessly.We might expect that neither firm would choose to spend much on advertising, but the model shows that this logic is off base. When the firms make their choices independently and they care only about their own profits, each one has an incentive to advertise, regardless of what the other firm does. When the other firm does not advertise, you can steal customers from it if you do advertise, when the other firm does advertise, you have to advertise to prevent loss of customers. So, these two firms end up in a bad equilibrium in which both have to waste resources. This market can not apply demand and supply principle to predict consumer behaviours because they depends advertisement to promote their products. If these two firms advertise their products in the same time. Then, it is not possible that if one firm increases it price and it will cause its customer number loss, due to its advertise can help it to attract customers to consider its product from television or radio or newspapers or magazine promotion channels. So, I suppose that these two firms decide to increase their price, when they advertise their products to let customers to know in the same time. They will not lose their customers or reduce their customers easily. Because their customers can be persuaded to choose to buy their products to compare other similar products in preference. So, their increasing price will not influence their customers number lose easily. It explains that demand and supply principle is not right to this case, so demand and supply principle can misuse to help them to predict consumer behaviours when they advertise their products in the same time. Also, demand and supply principle is not suitable to them to predict consumer behaviours when they advertise their products in the same time. They will do wrong prediction to their consumers purchase desire when they advertise their products in the same time.
Author: Alfred L Norman Publisher: World Scientific ISBN: 9814635308 Category : Business & Economics Languages : en Pages : 250
Book Description
What algorithms are tractable depends on the speed of the processor. Given the speed of digital computers, polynomial algorithms are considered tractable. But, a human can take several seconds to make one binary comparison between two pens. Given this slow speed, sublinear algorithms are considered tractable for an unaided human and this defines Simon's concept of bounded rationality.Humans make simplifications to solve the intractable consumer optimization problem. Consumers search for goods and services item-by-item, which greatly reduces the number of alternatives to consider. In addition, consumers have operators that can process a set in a single operation. Also, consumers budget by incremental adjustment.In considering consumer performance the question to ask is how close to optimal is consumer performance and not whether consumers optimize as a yes/no question. Given the ordinal nature of utility theory this creates a basic measurement problem. The book presents a review of the literature on consumer performance.This is an opportune time to study consumer procedures because the Internet provides a media to make substantial improvements in consumer performance. The book includes a case study comparing the performance of a digital camera selection code with the advice of sales people. A field experiment demonstrates that the software code provides better advice.
Author: Milton Friedman Publisher: Routledge ISBN: 1351496778 Category : Business & Economics Languages : en Pages : 377
Book Description
Economics is sometimes divided into two parts: positive economics and normative economics. The former deals with how the economic problem is solved, while the latter deals with how the economic problem should be solved. The effects of price or rent control on the distribution of income are problems of positive economics. The desirability of these effects on income distribution is a problem of normative economics. Within economics, the major division is between monetary theory and price theory. Monetary theory deals with the level of prices in general, with cyclical and other fluctuations in total output, total employment, and the like. Price theory deals with the allocation of resources among different uses, the price of one item relative to another. Prices do three kinds of things. They transmit information, they provide an incentive to users of resources to be guided by this information, and they provide an incentive to owners of resources to follow this information. Milton Friedman's classic book provides the theoretical underpinning for and understanding of prices. Economics is not concerned solely with economic problems. It is a social science, and is therefore concerned primarily with those economic problems whose solutions involve the cooperation and interaction of different individuals. It is concerned with problems involving a single individual only insofar as the individual's behavior has implications for or effects upon other individuals. Price Theory is concerned not with economic problems in the abstract, but with how a particular society solves its economic problems.
Author: Philip Mirowski Publisher: Annual Supplement to History o ISBN: Category : Business & Economics Languages : en Pages : 422
Book Description
While the theory of demand—that consumers buy more as prices fall and buy less as they rise—is decidedly uncontroversial in mainstream economics, the absence of controversy belies the theory’s contentious and complicated history. This volume provides a better understanding of the history of demand theory and its relationship to major theoretical developments in twentieth-century microeconomics. Contributors investigate demand theory as it stabilized in the first half of the twentieth century by examining the Hicks-Allen composite commodity, French mathematician Jean Ville’s contribution to consumption theory, Walrasian theories of markets with adverse selection, and the Sonnenschein-Mantel-Debreu theorem. They analyze the relationship between demand theory and both the broader program of neoclassical economics and developments within contemporary economic theory. This volume demonstrates that demand theory is more complicated than it is generally imagined to be. Contributors. H. Spencer Banzhaf, John S. Chipman, Manuel Fernandez-Grela, François Gardes, Pierre Garrouste, J. Daniel Hammond, D. Wade Hands, Alan Kirman, Kyu Sang Lee, Jean-Sébastien Lenfant, Philip Mirowski, S. Abu Turab Rizvi, Maarten Pieter Schinkel, Esther-Mirjam Sent, Shyam Sunder, Fernando Tohmé
Author: Peter B. Dixon Publisher: Elsevier ISBN: 0444597735 Category : Business & Economics Languages : en Pages : 339
Book Description
In a unique approach to microeconomic theory, this book constructs (and proposes solutions to) major problems in mathematical programming, the theory of consumer demand, the theory of production, and welfare economics. Readers can thereby derive for themselves many of the major results achieved in microeconomics. Introductory notes set the scene for each chapter, and the subsequent sets of problems and annotated reading lists guarantee the reader a thorough grounding in microeconomic theory.
Author: Johnny Ch Lok Publisher: ISBN: 9781653710478 Category : Languages : en Pages : 44
Book Description
⦁Demand and supply principle can misuse to predict consumer behaviour when the two firms participate advertisement to promote their products in the same timeWhy can demand and supply principle misuse to predict consumer behaviour when the two firms participate advertisement to promote their products in the same time ? I shall explain as below: Assume that two competing firms must decide whether to have a big advertising budget. Advertising would allow one firm to steal some of the other's customers. But when they both advertise, the effects on customer demand cancel out. The firms end up having spent money needlessly.We might expect that neither firm would choose to spend much on advertising, but the model shows that this logic is off base. When the firms make their choices independently and they care only about their own profits, each one has an incentive to advertise, regardless of what the other firm does. When the other firm does not advertise, you can steal customers from it if you do advertise, when the other firm does advertise, you have to advertise to prevent loss of customers. So, these two firms end up in a bad equilibrium in which both have to waste resources. This market can not apply demand and supply principle to predict consumer behaviours because they depends advertisement to promote their products. If these two firms advertise their products in the same time. Then, it is not possible that if one firm increases it price and it will cause its customer number loss, due to its advertise can help it to attract customers to consider its product from television or radio or newspapers or magazine promotion channels. So, I suppose that these two firms decide to increase their price, when they advertise their products to let customers to know in the same time. They will not lose their customers or reduce their customers easily. Because their customers can be persuaded to choose to buy their products to compare other similar products in preference. So, their increasing price will not influence their customers number lose easily. It explains that demand and supply principle is not right to this case, so demand and supply principle can misuse to help them to predict consumer behaviours when they advertise their products in the same time. Also, demand and supply principle is not suitable to them to predict consumer behaviours when they advertise their products in the same time. They will do wrong prediction to their consumers purchase desire when they advertise their products in the same time.ON conclusion, using these demand and supply and price elasticity techniques, economists derive specific prediction for how consumers choose which products to buy, how households save, how firms invest, how workers search for jobs, as well as for how these actions depend on the particulars. They can help them to predict job and consumption behaviours more accurate, it depends on whether the situation is right, such as both competition firms participate to advertise their products in the same time case, it is not right to apply above economic principle to predict consumer behaviours. They will get wrong prediction when they apply this principle to predict consumer behaviours.
Author: Dwi Ardi Wicaksana Putra Publisher: UNDA Publishing ISBN: Category : Business & Economics Languages : en Pages : 51
Book Description
The book "Theory & Relevant Cases in Economics: An Overview of Demand, Supply, and Elasticity" provides a comprehensive introduction to economic theory and its practical application in real-world scenarios. The book is divided into three main sections that cover the basics of demand and supply theory, the concept of elasticity, and relevant case studies that apply economic theories in various economic contexts. The first section of the book covers the fundamentals of demand and supply theory, including the factors that influence consumer behavior and the behavior of producers. The section also includes a discussion on how to read demand and supply graphs and how changes in market conditions can affect the well-being of consumers and producers. The second section of the book provides a detailed explanation of the concept of elasticity, including elasticity of demand and supply. The section highlights the importance of elasticity in understanding market behavior and how it can help identify and measure the responsiveness of consumers and producers to changes in market conditions. The third section of the book presents relevant case studies that apply the theories of demand, supply, and elasticity in various economic contexts, including agriculture, labor markets, and other industries. These case studies provide practical examples of how economic theory works in the real world and highlight the importance of understanding and applying economic concepts to solve real-world problems. "Theory & Relevant Cases in Economics: An Overview of Demand, Supply, and Elasticity" is a valuable resource for students and professionals seeking to gain a comprehensive understanding of economic theory and its practical applications. The book's clear and concise explanations, coupled with practical examples, make it an accessible and engaging read for anyone interested in economics.
Author: Johnny Ch Lok Publisher: ISBN: Category : Languages : en Pages : 70
Book Description
In businessmen profit earn aik vire, they can also apply behavioral economic theory to seek rationally to maximize, their rxpected, returns and had full knowledge of the data needed to succeed in this attempt, they knew the relevant cost and demand functions, calculated marginal cost and marginal revenue from all actions open to them, and pushed each line of action to the point at which the relevant marginal cost and marginal revenue were equal. Hence, for example, it is not by learning and applying appropriate mathematical formulas that one becomes and Nexpert or decision maker, bur rather by developing the required skills. often learned in the pool hall and in the firm through learning -by-doing. A training program for firm decisionmaking players, concentrating on math and engineering courses would by itself, not produce experts. Thus, behavioral assumptions should need to assume for optimal or rational intelligentchoice behavior. Moreover, there exists a variety of non-profit maximizing behaviors that have a positive probability of never failing. In fact, it has shown that firms that maximize profits are the least likely to be the market survivors.Hence, in different firms behavioral view, this sensitivity of outcomes to process can have important consequences for analysis at the level of market and economy, which assumes that consumer individual typically makes choices in their own best interest, " were best interest" is something that not incorporating into their calculations, the true costs and benefits of their choices.Hence, behavioral economy theory can help product sellers to predict consumer individual choice, attitude in order to find what the important factors influence they choose to buy the seller's products in preference. Also, behavioral economic theory is an analytical predictions, how intelligent individuals actually behave. This approach to choice behavior does not assume that individuals are in any way irrational, even through such behavior is expected to deviate substantively. Hence, the behavioral economic theory assumes humans are rational and maximum their individual self interest. In consumption view, in general, consumers choose to buy any products in preference, they will evaluate whether the product can bring the maximum economic or useful benefit to them in order to make the final purchase in our society. Such as organic food choice case, food consumers' choices, where people's may come from direct influence of other people's behavior and social norms on our behaviors. Then, theory assumes we independently know what we want and that our preferences are fixed. So, this standard theory is very good at explaining short -term decision-making.
Author: Johnny Ch Lok
Author: Johnny Ch Lok
Author: Alfred L Norman
Author: Milton Friedman
Author: Patrick M. Emerson
Author: Philip Mirowski
Author: Peter B. Dixon
Author: Johnny Ch Lok
Author: Dwi Ardi Wicaksana Putra
Author: Johnny Ch Lok
Author: John Hicks