All (26654)
Notes (10000)
note
Ch 6 - Price Elasticity of Supply
Updated 1297d ago
0.0(0)
note
Econ Chapter 6: Describing Supply & Demand: Elasticities Price Elasticity Price Elasticity of demand `the percentage change in quantity demanded divided by the percentage change in price ED= % change in quantity demanded / % change in price Price elasticity of supply The percentage change in quantity supplied divided by the percentage change in price ED= % change in quantity supplied / % change in price Price elasticity is the change in quantity divided by the percentage change in price As elasticity increases, quantity responds more to price changes Classifying Demand and Supply as Elastic or Inelastic Elastic If the percentage change in quantity is greater than the percentage change in price (E > 1) Inelastic If the percentage change in quantity is less than the percentage change in price (E < 1) Example Hulu & Netflix If Hulu raised prices quantity demanded will fall a lot as people will shift to Netflix The demand for Hulu would be highly elastic Elasticity is Independent of Units Elasticity measures the %, not the unit, change in variables Using % allows us to measure responsiveness independent of units, making comparisons among different goods easier Calculating Elasticities Case 1 When orange county, Florida, raised the price of it’s toll roads by 14%, the number of motorists using toll roads fell by only 1.8 percent .13, E < 1= Inelastic Case 2 When gasoline prices rose by 10% in washington, DC, the quantity of gasoline demanded there fell by 40% 4, E > 1 = Elastic Endpoint problem The % change differs depending on whether you view the change as a rise or a decline Economists use the average of the two end values to get around the endpoint problem Example V Elasticity is not the same as slope The steeper the curve becomes at any given point- the less elastic supply or demand is Perfectly inelastic quantity does not respond at all to the changes in price Curves that are vertical Perfectly elastic Quantity responds enormously to changes in price (sensitive) Horizontal curves are elastic Unit elastic percentage change in quantity equals the percentage change in price 5 terms to describe elasticity Perfectly elastic Quantity responds enormously to changes in price (E=) Elastic % change in quantity exceeds the % change in price (E>1) Unit elastic % change in quantity is the same as the percentage change in price (E=1) Inelastic E <1 Perfectly inelastic E=0 Substitution & Elasticity Most important determinant of price elasticity of demanded is the number of substitutes for the good The more substitutions a good has, the more elastic demand is its demand Example Subsisting a big mac for a whooper Substitution & Demand The number of substitutes a good has is affected by several factors 1. The time period being considered 2. The degree to which a good is a luxury 3. The market definition The importance of the good in one’s budget How Substitution Factors Affect Specific Decisions In the long run, demand generally becomes more elastic Elasticity, Total Revenue, and Demand The total revenue a supplier receives is the price they charge times the quantity they sell Elasticity tells sellers what will happen to total revenue if their price changes If demand is elastic - a rise in price lowers total revenue If demand is unit elastic - a rise in price leaves total revenue unchanged If demand is inelastic - a rise in price increases total revenue Total Revenue along a Demand Curve With elastic demands, a rise in price decreases total revenue With inelastic demands, a rise in price increases total revenue Income and Cross-Price Elasticity Income elasticity of demand Tells us the responsiveness of demand to changes in income Normal goods Goods whose consumption increases with an increase in income Income elasticity of demand shows the responsiveness of demand to changes in income Luxury A good that has income elasticity greater than 1 Its percentage increase in demand is greater than the percentage increase in income Necessity A good that has an income in elasticity between 0 &1 The consumption of a necessity rises by a smaller proportion than the rise in income Inferior goods Goods whose consumption decreases when income increases Cross-Price Elasticity of Demand Cross-price elasticity of demand Shows the responsiveness of demand to changes in prices of related goods Substitutes Goods that can be used in place of another When the price of a good goes up, the demand for the substitute goes up Substitutes have positive cross-price elasticities Complements Goods that are used in conjunction with other goods A fall in the price of a good will increase the demand for its complement Compliments have negative cross-price elasticities Some Examples Elasticity and Shifting Supply and Demand
Updated 629d ago
0.0(0)
note
Price Elasticity
Updated 801d ago
0.0(0)
note
Pricing the Product
Updated 566d ago
0.0(0)
note
Economics price
Updated 207d ago
0.0(0)
Flashcards (10000)
flashcards
Lewins 3-Step Change Model
4
Updated 4h ago
0.0(0)
flashcards
Grade 10 Hospitality Studies — Exam memo Section A: Short questions (40 marks) Question 1.1 — Multiple choice Question Answer 1.1.1 B — Pancake 1.1.2 A — Too much baking powder was used 1.1.3 A — Glaze 1.1.4 C — Marinade 1.1.5 D — Tortellini 1.1.6 C — 250 ml (likely expected answer) 1.1.7 C — Purchasing the same amount of ingredients 1.1.8 B — Earl Grey 1.1.9 C — Déglacé 1.1.10 B — Maître d'hôtel Question 1.2.1 — Cheese matching Write only the letter next to each number. Question Answer 1.2.1.1 Very hard cheese B — Pecorino 1.2.1.2 Soft, ripened cheese D — Brie 1.2.1.3 Semi-hard cheese G — Emmental 1.2.1.4 Processed cheese E — Sliced cheese 1.2.1.5 Special cheese C — Feta Question 1.2.2 — Pasta matching Question Answer 1.2.2.1 Italienne D — Pasta with butter and grated cheese 1.2.2.2 Napolitaine E — Tomato sauce and Parmesan 1.2.2.3 Cannelloni B — Filled pasta tubes with béchamel sauce and cheese 1.2.2.4 Lasagne A — Layers of pasta, mince and béchamel sauce with cheese 1.2.2.5 Milanese C — Tomato sauce, ham and cheese Question 1.3 — Culinary terminology Question Answer 1.3.1 Mirepoix — a mixture of carrots, celery and onions used to flavour stocks and sauces. 1.3.2 Sifting — passing dry ingredients through a sieve. 1.3.3 Grating — rubbing food against a grater. 1.3.4 Skimming — removing fat from the surface of a liquid. 1.3.5 Dusting — sprinkling icing sugar or castor sugar over a cake. 1.3.6 Mageu (mahewu) — fermented maize-meal drink or sour porridge. 1.3.7 Crêpe — a thin French pancake used to wrap fillings. 1.3.8 Durum wheat — the wheat commonly used to make dried pasta. 1.3.9 Approximately 1 kg of cooked pasta. 1.3.10 Fruit purée / coulis — fruit that has been puréed, with or without sugar. Question 1.4 — Choose the correct answers 1.4.1 Combination heat cooking methods A — Braising C — Pot roasting The question asks for three, but these are the two clear combination methods in the options shown. Check this question against your class notes because the paper may contain an error. 1.4.2 Types of cooking equipment The options shown are all examples of cooking equipment: A — Bain-Marie B — Combi oven C — Steamer D — Convection oven E — Bratt pan The instruction says to choose three, so I can't confidently identify the intended three from this list alone. 1.4.3 Types of coffee A — Espresso B — Cappuccino D — Mocha Latte E — Café Mocha Rooibos is not coffee. Section B: Kitchen and restaurant operations, hygiene, safety and security (40 marks) Question 2.1 — Burns and first aid 2.1.1 Give one reason why Lungelo could have burnt herself with the wet cloth. (2) Water in the wet cloth can heat up and produce steam, which can burn the skin. The wet cloth transfers heat more readily than a dry insulating cloth. 2.1.2 Classify the type of burn. (1) - A thermal burn, caused by heat. 2.1.3 Explain how to treat her burn. (3) Cool the burn under cool running water for 20 minutes. Remove jewellery or clothing near the burn if it is not stuck to the skin. Cover it loosely with a sterile, non-fluffy dressing. Do not apply ice, butter or toothpaste. 2.1.4 Provide the aim of first aid. (2) Preserve life. Prevent the condition from worsening and promote recovery. 2.1.5 Distinguish between a chemical and an electrical burn. (2) Chemical burn: Caused by corrosive chemicals damaging the skin or tissues. Electrical burn: Caused by an electric current passing through the body. Question 2.2.1 — Preparation apparatus (6) A — Colander Use: To drain water from cooked pasta or rinse fruit and vegetables. B — Palette knife Use: To spread icing or lift and turn delicate foods. C — Spatulas / scrapers Use: To scrape mixtures from bowls or fold ingredients together. Question 2.3 — Franchises 2.3.1 Three advantages and three disadvantages (6) Advantages Disadvantages An established brand attracts customers. Franchise fees and royalties must be paid. Training and support are provided. The owner has limited independence. An established business model reduces some risks. Strict rules limit changes to products and operations. 2.3.2 Identify three franchises. (3) McDonald's KFC Nando's Question 2.4 — Three types of formal accommodation (3) Hotels Motels Guest houses Question 2.5 — Why must departments work closely together? (4) To ensure efficient communication and coordination. To prevent mistakes and delays. To provide good customer service. To ensure all departments work towards the same goals. Question 2.6 — Parts of a chef's uniform 2.6.1 Chef's jacket (3) Protects the skin from heat and minor splashes. Helps maintain a professional appearance. Can be removed or changed when dirty to maintain hygiene. 2.6.2 Safety shoes (2) Protect the feet from hot liquids, falling objects and sharp items. Provide grip to reduce slipping on wet or greasy floors. Question 2.7 — Three basic methods of pest control (3) Physical or mechanical control — traps, screens and sealing entry points. Chemical control — approved pesticides. Biological control — using natural enemies of pests. Section C: Nutrition, menu planning and food commodities Your screenshots don't show every page of Question 3 clearly. I can answer the visible questions from Question 4 on page 10. Question 4.3 — Salt water test 4.3.1 Evaluate the freshness of the egg and motivate your answer. (2) The egg appears to be standing upright at the bottom of the glass, so it is likely older rather than very fresh. As eggs age, the air cell grows and the egg becomes more buoyant. A fresh egg generally sinks and lies flat. An older egg may stand upright. An egg that floats is generally very old and should be checked carefully before use. Question 4.4 — Guidelines for purchasing eggs (4) Choose clean eggs with uncracked shells. Avoid eggs with unpleasant odours. Buy eggs from a reputable supplier. Check the expiry or best-before date and ensure they have been stored appropriately. Question 4.5 — Three ways to store eggs (3) Store in a refrigerator at a consistent, cool temperature. Keep in their carton to protect them and reduce absorption of odours. Store away from strong-smelling foods and use older eggs first. Question 4.6.1 — Properties of a French omelette (3) Pale golden or lightly coloured on the outside. Soft, moist and tender inside. Neatly folded, with no burnt patches. Question 4.7 — Difference between butter and margarine (2) Butter: Made from milk fat or cream. Margarine: Made mainly from vegetable oils or other permitted fats. Question 4.8 — Two bacteria used in yoghurt manufacture (2) Lactobacillus delbrueckii subsp. bulgaricus Streptococcus thermophilus Question 4.9 — Three heat-treatment methods applied to dairy products (3) Pasteurisation Sterilisation Ultra-high-temperature (UHT) treatment Question 4.10 — Four milk substitutes (4) Soya milk Oat milk Almond milk Rice milk Question 4.11 — Correct way to freeze mince (3) Divide the mince into meal-sized portions. Place in airtight, freezer-safe packaging and flatten into thin portions. Label with the date and freeze promptly at −18 ∘ C or colder. Question 4.12 — Two cooking methods for minced meat (2) Frying Stewing Question 4.13 — How to correctly pour tea (3) Place a tea strainer over the cup if using loose-leaf tea. Pour the brewed tea carefully into the cup without spilling. Serve with milk, sugar or lemon according to the customer's preference.
5
Updated 5h ago
0.0(0)
Users (6654)