Here is the synopsis of our sample research paper on Economics Questions. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 5 page paper answers questions on elasticity and supply and demand. The first questions demonstrates how to calculate price elasticity of demand and applies it to a scenario provided by the student, using the calculated elasticity to forecast changes in demand at different price levels. The second part of the paper look at the way price is determined by the supply and demand relationship and show how changes in the supply or the demand will impact on price, this is explained clearly and demonstrated with supply and demand graphs. The bibliography cites 6 sources.
Page Count:
5 pages (~225 words per page)
File: TS14_TEelasSD.rtf
Buy This Term Paper »
Unformatted sample text from the term paper:
look at the way in which a price change is impacting on the demand. In most cases an increase in price will result in a decrease in demand. This calculation
allows us to quantify the change. The calculation is relatively simple, the figures required can usually be gained form the historical sales figures of a company. The calculation
is in the form of a division, on the top of the division is the percentage change in the quantity demanded, (this means the percentage change in the number bought
if these are form historical figures), which is then divided by the bottom of the division equation, this is the percentage change in the price of the product (Mayer, 2010,
Nellis and Parker, 2006). In this case there is a starting price of $1.25, and this increases to $1.26, this increase is $0.01 so as a percentage this is 0.8%
(calculated by 0.01/1.25 x 100). Now we need to calculate the change in the demand, this has changed from 1000 to 992, so it has fallen by 8, so the
calculation is 8/1000 x 100 which tells us that the change is -0.8% (minus as it is a fall in demand). The calculation is then 0.8/-0.8 = -1. Where
there is a minus in front of the elasticity this is usually ignored. To look at the level of elasticity we look at this result. If the result is more
than 1 then the price is elastic. This means that the increase in price will result in a decrease in demand, but it will also result in a decrease in
total revenue with the decrease in demand being proportionality greater than the increase in the price. If the result of the calculation is less than 1 then the result will
...