HMEMS80 Assignment 2 (ANSWERS) Semester 2 2024 (755747) - DUE 30 September 2024
All for this textbook (38)
Written for
MBA or M.B.A. - Master of Business Administration
MBA or M.B.A. - Master of Business Administration
Seller
Follow
gyamarayum
Content preview
Managerial Economies
MBA 1st Semester
,Micro-Economies
The term ‘micro’ means small. The study of an individual consumer or a firm is called microeconomics (als
called the Theory of Firm). Micro means ‘one millionth’. Microeconomics deals with behavior and problem
single individual and of micro organization. Managerial economics has its roots in microeconomics and it d
with the micro or individual enterprises. It is concerned with the application of micro organization. Manag
economics has its roots in microeconomics and it deals with the micro or individual enterprises. It is conce
with the application of the concepts such as price theory, Law of Demand and theories of market structure
so on.
Demand:
Demand simply means a consumer’s desire to buy goods and services without any hesitation and pay the
for it. In simple words, demand is the number of goods that the customers are ready and willing to buy at
several prices during a given time frame. Preferences and choices are the basics of demand, and can be
described in terms of the cost, benefits, profit, and other variables.
The amount of goods that the customers pick, modestly relies on the cost of the commodity, the cost of o
commodities, the customer’s earnings, and his or her tastes and proclivity. The amount of a commodity th
customer is ready to purchase, is able to manage and afford at provided prices of goods, and customer’s t
and preferences are known as demand for the commodity.
,Concept of Demand Curve
The demand curve is a graphical representation of the relationship betwe
the price of a good or service and the quantity demanded for a given peri
of time. In a typical representation, the price appears on the left vertical a
while the quantity demanded is on the horizontal axis.
A demand curve doesn't look the same for every product or service. Whe
the price rises, demand generally falls for almost any good, but the drop i
much greater for some goods than for others. This is a reflection of the pr
elasticity of demand, a measurement of the change in consumption of a
product in relation to a change in its price. The elasticity of demand for
products varies between and within product categories, depending on the
product’s substitutability.
For example, if the price of corn rises, consumers will have an incentive to
buy less corn and substitute other foods for it, so the total quantity of cor
that consumers demand will fall.
, Types Of Demand Curve
There are two types of demand curves: an individual demand curve and a market demand curve.
Individual Demand Curve
An individual demand curve is one that examines the price-quantity relationship for an individual consum
how much of a product an individual will buy given a particular price.
Market Demand Curve:
The demand curve plots out the demand for an individual consumer, hence the name individual dem
curve. But they don't take entire markets into account. That's where the market demand curve come
A market demand curve is the summation of the individual demand curves in a given market. It show
the quantity of a good demanded by all individuals at varying price points. Keep in mind that this gra
doesn't outline what consumers want. Rather, it depicts the goods and services they'll buy if they ha
the purchasing power to do so.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller gyamarayum. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R151,95. You're not tied to anything after your purchase.