Price Elasticity of Demand

1. If the demand for corn increases due to its use as an alternative energy source, what will happen to the supply of corn’s substitute such as soybean? To answer this, first we have to understand what determinants will shift demand and supply. There are five demand determinants, they are T-I-P-E-N. Taste of preference, income, […]

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Price elasticity of demand

1.What do substitutes refer to in economics? Give an example of two substitutes. This would be the thing or good that someone or a company might buy to replace another good at a cheaper cost. So for example if a company is using cotton to make parts for their product and the price of cotton […]

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Team Reflection

This week the team discussion included how well we did on the weekly quiz for weeks one and two. We determined that, even though we may have done well on the quizzes, there are many areas that we are not so familiar with. In week one we each missed one question on the quiz, however, […]

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Elastic Demand, Inelastic Demand and Unit Demand

Understanding the law of demand pertaining to the elasticity of demand with other things equal measures consumers’ responsiveness or sensitivity to change in price of a product. The measuring of the degree of change or percentage of change will result in either elastic, inelastic, or unit demand. Elastic demand or “elasticity means the extent to […]

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