Suppose the government builds a railway in northwest New Territories.

Slides:

Advertisements

Similar presentations

In this chapter, look for the answers to these questions:

Advertisements

ECON 351 Elasticity of Demand & Supply Week 4.1 September 17, 2013.

ECON 308 Week 3 September 14, 2012 Chapter 4. Review Markets are the interaction of buyers and sellers. Focus on buyers and sellers separately. Ceteris.

PROFIT MAXIMIZATION UNDER COMPETITIVE MARKET CONDITIONS

Unit II DEMAND AND SUPPLY ANALYSIS (10). Demand The amount of a particular economic good or service that a consumer or group of consumers will want to.

Change in QD or Change in D

Beef Issue in South Korea By: Helen Lee. Beef!! Beef is used in many of Koreas traditional dishes and in many other foods. Nearly everyone Beef! (not.

Supply and Demand The goal of this chapter is to explain how supply and demand really work. What determines the price of a good or service? How does the.

McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 03 The Concept of Elasticity and Consumer and Producer.

Copyright © 1999 by Harcourt Brace & Company. All rights reserved. Supply and Demand.

Economic and behavioral effects of transportation infrastructure Testimony to the New Jersey Clean Air Council April 14, 2010 Robert B. Noland Professor,

The UK Housing Market A barometer of the economy? The UK Housing Market A barometer of the economy?

AS/A2 Applying economic theory The theory of markets and the real world With illustrations from the housing, energy and food retailing markets The theory.

The UK Housing Market Is it actually working? The UK Housing Market Is it actually working?

DEMAND The relationship between demand and priceThe relationship between demand and price –the law of demand –the income effect –the substitution effect.

THE TIME DIMENSION Short-run and long-run price adjustmentShort-run and long-run price adjustment –short- and long-run demand and supply curves –short-

PowerPoint Slides by Robert F. BrookerCopyright (c) 2001 by Harcourt, Inc. All rights reserved. Law of Demand A decrease in the price of a good, all other.

Sales and Excise taxes.

1 Supply, Demand and Government Policies Chapter 6.

Supply, Demand and Government Policies Chapter 6 Copyright © 2001 by Harcourt, Inc. All rights reserved. Requests for permission to make copies of any.

Repealing the Laws of Supply and Demand: Price Controls

1 Excise Tax. 2 Change in supply If non-price determinants of supply should change the supply curve will shift and we say there has been a change in supply.

F.4 Economics Project The McDonalds McDonalds Restaurants (Hong Kong) Limited.

Chapter 6: “Supply, Demand and Government Policies”

Copyright © 2004 South-Western 6 Supply, Demand, and Government Policies (Framboð, eftirspurn og stefna stjórnvalda)

Economic Analysis for Business Session VIII: Supply Demand and Government Policies-I Instructor Sandeep Basnyat

1. PUTTING DEMAND AND SUPPLY TO WORK Learning Objectives 1.Learn how to apply the model of demand and supply to explaining the behavior of equilibrium.

1 Chapter 4 Practice Quiz Tutorial Markets in Action ©2004 South-Western.

Copyright © 2004 South-Western 6 Supply, Demand, and Government Policies.

© 2007 Thomson South-Western. Supply, Demand, and Government Policies In a free, unregulated market system, market forces establish equilibrium prices.

Supply, Demand and Government Policies Chapter 6 Copyright © 2004 by South-Western,a division of Thomson Learning.

Supply, Demand, and the Price System. Quick Review – the following information should be in your notes already.

Role of Prices Economics Koehn/Molter. Review A demand schedule shows: – How much consumers are willing to buy a various prices. A supply schedule shows:

Supply, Demand and Government Policies

Market Equilibrium Mr. Barnett University High School AP Economics.

1 5.Market Intervention 2 Chapter 5 : main menu 5.1Price ceiling Theory in Life Price floor Theory in Life 5.2 Concept Explorer 5.1 Progress Checkpoint.

7 - 1 Copyright McGraw-Hill/Irwin, 2005 Price Elasticity of Demand Price Elasticity and Total Revenue Determinants of Price Elasticity of Demand Price.

AAEC 3315 Agricultural Price Theory Chapter 9 Market Supply and Elasticity.

Own price elasticity and total revenue changes

What effect does a change in price have on the quantity demanded?

What you will learn... Total revenue and profit Elasticity and change in total revenue Take this challenge.

Copyright © 2004 South-Western 5 Elasticity and Its Applications.

Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Microeconomics 7/e by Jackson and McIver Slides prepared by Muni Perumal, University of Canberra,

The model that illustrates how a competitive markets works

1 3.Changes in Equilibrium Price and Quantity 2 Chapter 3 : main menu 3.1 Change in consumption decision Concept Explorer 3.1 Progress Checkpoint

Elasticity of Demand & Supply 20 C H A P T E R From Ch. 3 make sure you know the following: Define demand and supply and state the laws of demand and.

Supply and Demand: Market Equilibrium. Equilibrium When supply = demand, there is equilibrium in the market Equilibrium creates a single price and quantity.

Other Elasticity Concepts How much of a shift?. Other Elasticity Concepts Other elasticities can be useful in specifying the effects of a shift factor.

Chapter 9. THE MARKET FOR FACTORS OF PRODUCTION 1. Perfect markets Supply of Labour Demand for labour Distribution of Income when Markets are competitive.

AS Economics and Business Changes in supply and Demand Unit 2b

Chapter 3 Supply and Demand

Firms and Competitive Markets

Revision This is not necessarily an indication of what will be, or won’t be in the exam. This is an overview of main concepts & diagrams.

1. In a perfectly competitive market in long-run

Four Possible Changes in Demand (D) and Supply (S) in a Market -- A Summary Richard Le.

THE MARKET FORCES OF SUPPLY AND DEMAND 0 Markets and Competition  A market is a group of buyers and sellers of a particular product.  A competitive market.

1 © ©1999 South-Western College Publishing PowerPoint Slides prepared by Ken Long Principles of Economics 2nd edition by Fred M Gottheil.

1 Competitive Industry in the Long Run The case of a constant cost industry.

Elasticity The coefficient of elasticity is a measure of the responsiveness of a dependent variable to a change in an independent variable.

Review of Microeconomics: Demand, Supply and Prices 1. Write answers to the following without looking them up or asking anyone else. 2. Correct or add.

Elasticity. Elasticity measures how sensitive one variable is to a change in another variable. –Measured in terms of percentage changes, elasticity tells.

Chapter 4: Demand Section 3. Copyright © Pearson Education, Inc.Slide 2 Chapter 4, Section 3 Objectives 1.Explain how to calculate elasticity of demand.

1994 Microeconomics Question 3.

Economics Chapter 4 Review.

Increase in total revenue Decrease in total revenue

© EMC Publishing, LLC.

BUSINESS HIGH SCHOOL-ECONOMICS

Elasticity of Demand Chapter 4 Section 3.

Economics Chapter 4 Review.

Presentation transcript:

Suppose the government builds a railway in northwest New Territories. With the aid of a diagram, explain the effect of this new railway on the total revenue of mini-buses operating on the same route. (6 marks) 設政府在新界西北興建一條鐵路。以圖輔助，解釋該新鐵路對行走相同路線的小巴的總收益有何影響。 (6分)

The new railway service is a substitute of minibus service. P S So the demand for minibus service may decrease. D2 P1 The total revenue decreases from P1Q1 to P2Q2. P2 D1 Q Q2 Q1

Suppose there is a drastic increase in sewage charges which affects the total revenue of local restaurants. With the aid of a diagram, explain the condition under which the total revenue would decrease. (8 marks) 設排污費大幅調高，因而影響本地酒家的總收益。以圖輔助，解釋在那一種情況下該總收益會下跌。 (8分)

- + The sewage charges increases cost. So the supply decreases. If the demand is elastic, the % increase in price is smaller than the % decrease in quantity demanded. So the total revenue decreases. P2 - + new expenditure P1 original expenditure Q1 D Q Q2