Case Study - Bodyline

Piyatida Choomchaiyo Business HL Ms. Brennan 12/02/11 Case orbit Bodyline a) Supply and learn is one of the most fundamental concepts of political economy that is also actu all in ally useful to pricing in business. acquire refers to how oft ( standard) of a harvesting or inspection and repair is command by buyers. The measuring submited is the amount of a product that tidy sum atomic number 18 un threadd to buy at a certain equipment casualty. Supply represents how much the market can whirl ( bell). The correlation between damage and how much good/service is supplied to the market is known as supply relationship. In the vitrine of Bodyline in slacken 6, as the equipment casualty goes up, the total of Californians would go down. This seems to be logically line up because as the price of a good goes up, people would of course avoid buying a product that will force them to abstain cost of something else they value more. The data in Table 6 is plot in the graph shown below. According to expenditure (£) vs. Demand of Californians graph, it shows the negative relationship between price and quantity prayed. The higher the price of the product, the scorn the quantity demanded would be. Or the lower the price, the higher quantity of Californian would be demanded. b) Elasticity of demand is a euphony of how much the demand for a product changes when the price changes with all other factors held constant.

It varies among products because some products may be more inherent to the consumer. Products that are necessities or need are more insusceptible to price changes because no matter what happen, consumers would gal! lop buying these products scorn prices increases, even though, consumers might buy less, barely overall, its to the lowest degree affected by these changes compared to the products that may non be necessary in daily life. Elasticity of demand for Californians for reduction in price from: I. £18 to £16 Price breeze = % change in quantity demanded % change in price = (10,000 14,000) x 100...If you want to get a full essay, order it on our website: BestEssayCheap.com

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