Violation of the law of demand

Assignment Help Microeconomics
Reference no: EM1392331

Imagine a large multinational firm producing consumer products which announces to cut 20,000 thousand jobs, close 100 plants and rely more on the internet to purchase its supplies. Imagine that the multinational plans to use part of the saved money to increase the promotion of some of its leading brands with the hope to boost sales and increase profits. If the multinational meets these targets what is likely to have happened to its total costs, total revenue, average costs and average revenue? Explain your answers supporting them with theory and illustrations (graphical and/or numerical).

Many hotels charge higher prices during the holiday period and yet there is higher demand for hotel accommodation during these periods. Is this a violation of the law of demand? Explain your answer and use theory and illustrations to support your arguments (graphical and/or numerical).

Reference no: EM1392331

Questions Cloud

Why body need different classes of immunoglobulins : The human body produces a variety of immunoglobulins. Explain why does the body need so many different classes and subclasses of these immunoglobulins?
Company''s strategic operational competitive position : A major competitive dimension that forms a company's strategic operational competitive position in their strategic planning is which of the following?
Probability calculation by using normal distribution : Suppose that the number of calories in McDonald's Egg McMuffin is normally distributed random variable with mean of 290 calories and standard deviation of 14 calories.
Central limit theorem-rolling a die : Suppose you roll a standard die 2000 times and let X be the sum of the values you get. Using the Central Limit Theorem, for what value of a is P[X >= a] approximately equal to P[N(0,1) >= 2] ?
Violation of the law of demand : Many hotels charge higher prices during the holiday period and yet there is higher demand for hotel accommodation during these periods. Is this a violation of the law of demand? Explain your answer and use theory and illustrations to support your ..
Research concept of unequal access to environmental quality : Research concept of unequal access to environmental quality. Make decision if you think that influence of hurricane was felt equally through all socioeconomic classes.
Dependent and independent variables in the water quality : Discuss and explain the dependent and independent variables in the water quality vs. fish population experiment?
Clarification of normal distribution : Critically discuss why you would or would not expect each of the following variables to be normally distributed.
Calculate the test statistics or p-value : If a sample of 25 workers found that the average work week is 48 hours, conduct a hypothesis test to determine if there is significant evidence that the length of the average work week has increased? Use alpha=.05

Reviews

Write a Review

Microeconomics Questions & Answers

  Short-run cost structure

Comment on the statement. Do you agree with the speaker? Explain. Use a graph to illustrate the answer indicating the firm's short-run cost structure

  Explain the macroeconomic and microeconomic concepts

Microeconomics is considered to be the study of scarce resources. Here, customers must make allocation decisions. These 3-basic trade offs include which goods or services are to be manufactured,

  Monopolistic and perfect competition market model

Discuss the difference between monopolistic competition, and perfect competition market models and also provide examples from the real life.

  Graph the supply and demand curves

Use supply or demand graphs to examine shifts in supply and demand and resulting changes in market equilibrium in the condition below.

  Question related to consumer surplus

A typical university football event need alumni to join one of many booster club before the person can buy season tickets.

  Determining present value of electrical power costs

Electrical power costs at a mine are estimated to be $850,000 in each of the next 12 years. Find out the present value of this expenditure at an interest rate of 11%.

  Considerations of product features-use of advertising

Create a list of reasons for your recommendation and include considerations of product features and use of advertising.

  Expansionary monetary policy in the usa

A South America nation with fixed exchange rate system has close economic ties with USA symbolized through extensive trade and unrestricted flow of capital between two nations.

  Capital and labor elasticity of production

what are the capital (k) and labor (L) elasticities of production? What do these elasticities tell you? Log Q=-1.5+.52log k+.65log L

  Microeconomic based multiple choice questions

farmers to lose fund since the demand for food is inelastic meaning the price refuse proportionally faster than increase in quantity sold.

  Compute the quality productivity ratio

Airphone, Corporation Produces cellular telephones at a processing cost of $47 each unit. The firm manufactures an average of 250 phones per week and has a yield of 87 percent good-quality phones

  What kind of demand does walmart''s products have

hat kind of demand does walmart's products have? Does it vary by season? What market segment does Walmart target?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd