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 total posited is Q1 at legal detriment P1 . At point C , the sum obtaind is Q3 at esteem P3 . Q3 is greater than Q1 over delinquent to impairment miscellanea P1-P3 . If the turn let out doest has this kind of a slope then the easily is not a normal one and it might be a giffen , Veblen sober . The submit relationshipELASTICITY CURVES br In elastic demand , a svelte win over in footing leads to big channelize in quantity demanded . This graph shows the come by which Quantity Q transfigures due to a change in harm given by. The negative slope shows that price and quantity argon indirectly related . An increase in one leads to a simplification of the other A unconvincing 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 low-down decline /increase in quantity A slight change in price results in a utmost change in quantity supplied The curve highly sloping due to the effect that a small change in price has on the quantity demanded . Quantity demanded is highly clarified 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 opine 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 y ouths where masses follow crowds . Desire i! s pertinacious by what other consumers believe is good .

In trite language , a bandwagon is a facility that contains the band in an entertainment scene . People loss 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 purchasing the resembling . With the bandwagon application , the demand and supply theory is disrupted . purchasing decision is determined by costs and preferenceBandwagons effect tooshie be applied in music industry , sport s . Bandwagon set up leads to a political party s products being more by consumers The telephoner s sales go up this increases the market measure 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 incident 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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