Friday, November 20, 2009
Microeconomics Article
Newspaper article topics- Demand and supply [2 topics]
- Elasticity[people's reaction to price change]
- Markets in Action [3 topics:price floor, price ceiling and sales tax example:cigaratte tax and alcohol tax]
- Do not do Utitility
- Do not do Output
- Perfect Competition[goods are homo
example:corn and rice market] - Monopolistic Competition [Read Sundaytimes for clothes,shoes or restaurants and Press releases for nike,adidas]
- Monopoly [single firm example EPL rights,Iphone subscription]
- Externalities[pollution]
- Labour Market [Minimum wage or training programmes for low skilled workers]
Fast Food Restaurants
6-7 Pages with double spacing
1) Background <3/4>
No./Types of firms/outlets: BK,Mac,MOS,LJS,KFC,CarlsJr,Popeye
Types of products sold: Beef burger, Chicken, Fries, colescaw
Distinguish between the products sold.
2)Demand[pick 2-3 determinants & explain]
Income Compare CarlsJr vs Mac's Big MAC
As income increases, demand for CarlsJr increases while demand for Mac's Big Mac decreases
As income increases, demand for Fast food decreases
Prices of related goods
If Mac increase prices of French Fries, demand for BK's fries will increase
3) Supply [pick 1-2 determinants]
Production cost eg: Price of potatoe increases hence supply of french fries decreases
4)Elasticity [Do on prices and either cross or income]
Price Elasticity
Closeness of Subtitudes
Demand for Mac's fries is price elastic because many subtitudes availiable:KFC,LJS all sell fries.
Demand for KFC chicken is price ? because less subtitudes
Proportion of Income
Compare adults[inelastic] vs students[more elastic]
Fast food vs western restaurants
Cross Income
Compare fast food restaurants vs restaurants -> Ei[fastfood <0]
Exy>0
Burgers &fries Exy <0>EI [restaurants > 0]
Labels: Microeconomics
7:46 PM By bsg1B23
