Price Elasticity of Demand
Price elasticity of demand
Unitary Price Elasticity
Measuring Total Revenue
The relationship between
price, elasticity, and total
prices. At what price will
total revenue be the
greatest? How many units
Supply, Demand &
In a free market system, market forces
One of the roles of economists is to
develop theories to assist in the
Controls on Prices
The Business Cycle
A business cycle refers to periods of expansion and
contraction. A peak is the high point following a period
of economic expansion. A trough is the low point
following a period of economic decline.
The recurring and fluctuating levels o
Price Controls measures :
Price Ceiling: a legal maximum on the price of a good or service.
Example: rent control.
Price Floor: a legal minimum on the price of a good or service.
Example: minimum wage.
SUPPLY, DEMAND, AND GOVERNMENT POLICIES
Change in Equilibrium
1.Change in Demand
Both quantity and Price increase when
demand curve shifts outwa
Economic growth can be defined and measured in
As an increase in real GDP (real national output)
As an increase in real GDP per capita. Growth in
real per capita incomes is perceived to be a better
measure of economic performance.
Economic Value Pricing
Economic Value to the Customer (EVC) is based on the insight that a customer will
buy a product only if its value to them outweighs the value of the closest alternative,
or when the utility of a product depends on its val
STRATEGY AND ELASTICITY
What are the major pricing techniques used
Does airlines charge the same price for all
Why is it able to do so? What is common
between people who opt for these discounts?
Introduction to Consumer Theory
This part of traditional microeconomic theory
is used to analyse and predict how
individuals make decisions about the
consumption of goods and services.
An important focus of the theory is on the
Market & the circulation flow
Economics decision-making units
A market is a group of buyers and sellers
of a particular goods and services.
A market may be loca
Kwality, the original Indian company, was founded in
the first in the region to import machinery for the mass
production and sale of ice cream on a commercial scale
In 1995, Kwality entered into an agreement with Lever,
and has since been
Get involved on Social Media, appealing to younger
In turn, using social proof that people are talking
Contestants take picture of themselves watching
favorite Nick show on-the-go
What do we know about
Nickelodeon is part of the global media company Viacom and is a multimedia
entertainment brand targeted at kids
Its core target audience is 2 to 11 year olds
The US channel launched on April Fools Day 1979, followed by the UK launc
Company Type: Athletic apparel.
Target Market: Yoga practitioners and runners, men and
women, between 18 and 55 with an income of $40,000+
Known for their high-performance, trade marked fabrics
which boast comfort and sweat-wicking ca
Strategy for New
BECOME #1 PIZZA
SELLER ON COLLEGE
Statistics that will consume your mind!
As of 2009:
Pizza Hut operates in 92 countries throughout
7,566 Pizza Hut Locations in the United States
4th Largest Fast F
Digital Marketing Strategy
IKEA is a privately held, Dutch company
that designs and sells ready-to-assemble
furniture, appliances & home dcor.
Three-step business model
Our product range
Our low prices
A better everyday life
Campus Check-In Campaign
Foursquare, is a location-based social networking website
that allows users to "check-in" at venues using a mobile
website, text messaging or a device-specific application.
The company started in 2009 and i
Analysis of e-Commerce and keys for succesful
Analysis of e-Commerce and keys for succesful companies
The number of American households shopping on the Internet is increasing every month. In the month of
February, 13.5 million households shopped
Baskin Robbins is the worlds largest chain of Ice
Cream shops with more than 7,000 locations in
nearly 50 countries. Baskin Robbins was named in
the top ice cream and frozen dessert franchise in
the United States by Entrepreneur magazine
The above diagram shows immediately why a technological improvement in one industry means that a
country can now choose to produce more of both goods. Since the PPF has shifted up (or out), there are
many combinations of goods that are now available th