ECO - day as demand cranks up, they have to fire up their...

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ECO-301 Find a real world example that illustrates the effects of a change in the external business environment on the supply and/or demand curve for a particular product or service. How does the material from Chapter 2 help you analyze the effects of the change on market equilibrium? How can a business use this information in its planning? Electricity works similarly. It is actually cheaper at night than during the day, because at night the utilities typically have spare capacity, and can supply the low demand from their most efficient plant. During the
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Unformatted text preview: day as demand cranks up, they have to fire up their less efficient peaking generators. For example, it costs the same to post a parcel to an address 10 miles away as it does to one 100 miles away, even though the parcel company has to spend a lot more money delivering the second one. A size 8 dress costs the same as a size 22, even though the 22 contains a lot more fabric and took longer to stitch. http://www.insidefutures.com/article/250272/Japan%20and%20Commodities:%20A %20Game%20Changer?%20Check%20the%20Spreads!%20.html...
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This note was uploaded on 07/07/2011 for the course ECON 322 taught by Professor Steven during the Spring '11 term at Southern New Hampshire University.

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