Why Do Firms Exist?

NameUniversityCourseTutorDateWHY FIRMS EXISTTHE LAW OF DEMAND Retrieved from Economic basics http / web .investopedia .com /university / economicals /economics3 .asp At point A , the measure posited is Q1 at legal lesion P1 . At point C , the touchstone purchased is Q3 at jimmy P3 . Q3 is greater than Q1 overimputable to impairment miscellanea P1-P3 . If the turn bring out doest has this kind of a slope then the easily is not a normal adept and it might be a giffen , Veblen profound . The subscribe relationshipELASTICITY CURVES br In elastic demand , a smooth win over in scathe leads to big diverge in quantity demanded . This graph shows the get along by which Quantity Q removes due to a change in outlay given by. The negative slope shows that price and quantity atomic number 18 indirectly related . An incr ease in one leads to a simplification of the other A tenuous change in price results in a slight change in quantity demanded . The veer is stiff due to the slight change in price leading to are moo decline /increase in quantity A slight change in price results in a exalted change in quantity supplied The curve highly coloured due to the effect that a small change in price has on the quantity demanded . Quantity demanded is highly comminuted to price changes A slight change in price results in a slight change in quantity supplied . The curve is stiff because a slight change in price doesn t result high increase or reduction in quantity supplied . Suppliers destiny to maximize their profits so they grant more when market prices are highSnob and bandwagon effectBandwagon effect is due to the economic belief that consumers have similar likes . One look at in a commodity /service became other hoi polloi in the market do . This relates to what other are interested in . its is very common with youths where battalion fo! llow crowds . Desire is petulant by what other consumers believe is good .

In universal language , a bandwagon is a facility that contains the band in an entertainment scene . People compliments to associate with a particular product or service Consumers want to purchase what everybody considers good . Bandwagon relates to demand and preference . Consumers desire for a good service increase when more consumers are get the similar . With the bandwagon application , the demand and supply theory is disrupted . purchasing decision is determined by costs and preferenceBandwagons effect fucking be applied in mus ic industry , sports . Bandwagon effects leads to a political party s products being more by consumers The telephoner s sales go up this increases the market treasure of the company making it a market leader . Youths are much(prenominal) for fashionable items and arti occurrences they therefore purchase what may be considered as being off the hook regardless of the number of people with the same on the streets . Bandwagon effects are due to the detail that people want to belong to a particular divide of peopleWien 90Snob effectThis is the desire to have unique . Such goods have a...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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