Dals Multiple Factors For ..

Question 1

Pasific - non price factors affecting demmand

Answer 1

Population - net migration
Advertising-
Substitutes price - goes down for substitute, demand will decrease
Income - demand for normal goods goes up, inferior goes down
Fashion
Interest rates - especially luxury goods
Compliments price

Question 2

Pints wc factors affecting supply

Answer 2

Productivity
Indirect taxes
No of firms - competitiveness - not a cost
Subsidy’s
Weather -not a cost
Costs of production- transport, Labor, oil, raw materials, utilities, regulation

Question 3

Arsi price mechanism and order

Answer 3

Signal excess demand ad need for less resources
Incentivise firms to decrease output to increase profit
Ratio resources In consumption
Allocate resources at equilibrium

Question 5

Q before you p

Answer 5

Change I quantity over change in price

Question 6

Splat - when is it price elastic ielastic

Answer 6

Substitute- more available, more elastic
Percentage of income - more expensive, more elastic
Luxury/necessity - luxury elastic necessity inelastic
Addictive or habit forming - makes it inelastic
Time period - short term few substitutes available so more inelastic

Question 7

Factors affecting elasticity of supply - pssst

Answer 7

Production time - longer more inelastic
Stocks - more stocks more elastic
Spare capacity - more it has more elastic
Substitutes for fop - more there are, more elastic
Time - short run inelastic

Question 9

Party season near Christmas - crosselasticity of demand

Answer 9

Positive
Substitutes
Negative
Complementary

Question 10

Elastic on itchy skin. Price decisions on demmand affecting total revenue

Answer 10

Elastic
Opposite
Inelastic
Same

Saying that increasing price if it’s inelastic increases total revenue while it decreases revenue If it’s elastic

Question 11

4 factors causing gov faliure

Answer 11

Reguatory capture - providing unfair monopoly power when regulation
Imperfect information - validating externalities, right level of policy requires
Unintended consequences - effect on poor, black market, impact on firms, employment
Admin and enforcement cost too high - regulation, subsidies, state provisions, price controls

Question 12

What are features of allocative efficiency

Answer 12

Maximising society surplus
Equilibrium is where msb = msc
When resources perfectly follows d=s

Question 15

Why are free markets epic

Answer 15

Efficient
Productive
Innovative
Competition

Question 18

Ltsb- barriers to entry and exit

Answer 18

Legal
Technical
Strategic
Brand loyalty

Question 19

Economies of scale really fun mums try making pies

Answer 19

Risk bearing
Financial
Management
Technical
Marketing
Purchasing