{"id":51683,"date":"2018-02-20T23:50:30","date_gmt":"2018-02-20T23:50:30","guid":{"rendered":"https:\/\/writemyessayfree.com\/820-words-principles-of-microeconomics"},"modified":"2017-08-16T12:36:57","modified_gmt":"2017-08-16T12:36:57","slug":"820-words-principles-of-microeconomics","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/820-words-principles-of-microeconomics\/","title":{"rendered":"820 words > Principles of Microeconomics"},"content":{"rendered":"<p>ou just opened a flower shop and are trying to understand pricing issues. You were told that elasticities are very important in determining&nbsp;prices and what products to supply, so you decide to investigate this concept.<\/p>\n<p>You call your friend,&nbsp;an economics professor, and ask, &#8220;What is the price elasticity of demand? What determines it? What is elastic and inelastic demand?&#8221;<\/p>\n<p>To really understand it, compute the following price elasticities of demand:<\/p>\n<ul>\n<li>The price of a laptop increases by 20% and there is a 40% drop in the quantity demanded.<\/li>\n<li>The price of a pack of cigarettes increases by 10% and there is a 5% drop in the quantity demanded.<\/li>\n<\/ul>\n<p>Of&nbsp;the above examples, which is more elastic, and&nbsp;which is the least elastic? Why? Answer the following questions:<\/p>\n<ul>\n<li>Why is elasticity an important concept&nbsp;for a business?&nbsp;\n<ul>\n<li>Bridge tolls<\/li>\n<li>Beachfront properties<\/li>\n<li>Gourmet coffee<\/li>\n<li>Gasoline<\/li>\n<li>Cell phones<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>Now that you are an expert on elasticities, what do you think would be the best time of year to raise prices of flowers, and why?&nbsp;&nbsp;<\/p>\n<p>What do you think the elasticities are in the flower business?<\/p>\n","protected":false},"excerpt":{"rendered":"<p>ou just opened a flower shop and are trying to understand pricing issues. You were told that elasticities are very important in determining&nbsp;prices and what products to supply, so you decide to investigate this concept. You call your friend,&nbsp;an economics <a href=\"https:\/\/www.benedictsol.com\/blogs\/820-words-principles-of-microeconomics\/\" class=\"read-more\">Read More &#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-51683","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/51683","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=51683"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/51683\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=51683"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=51683"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=51683"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}