• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Three main economic theories.

Extracts from this document...


Economic Theory In this Coursework there are three main economic theories which I am going to use and they are: Demand Demand is the quantity of goods and services that will be bought at any given price over a period of time. The Law of Demand states that the lower the price the higher the quantity demanded, and the higher the price the lower the quantity demanded. Demand is related to Price Here is an example of how price and demand are related and how it is shown on a diagram Demand Schedule Price (p) Quantity Demanded 80 1 70 2 60 3 50 4 Diagram The demand curve slopes downwards from left to the right because of the law of demand. A movement along the demand curve is caused by a change in the price itself. ...read more.


If on the other hand the price of good A falls then this will decrease the demand for the other. Therefore, if the price of good A falls then there will be a decrease in the demand of good B. This will shift the demand curve to the left from D D1. Equilibrium Equilibrium refers to a situation where there is no tendency towards change. At a point of equilibrium, producers are selling all of their output so there is no need for them to reduce their selling price. Similarly, all those people who are willing to buy the product can be accommodated by the supply available. 1. The signal sent back to the producer is that the price is too low. 2. The signal sent back to the producer is that the price is too high. 3. ...read more.


Price Elasticity of Demand It is abbreviated by: PED PED measures the responsiveness of changes in the quantity demanded as a result of a change in price. Formula to measure PED: % Change in quantity demanded % Change in price EXAMPLE Change in price % Change in quantity demanded % Elasticity % 10 20 2 50 25 .5 * Demand is elastic There is a relatively large response in the quantity demanded to a change in price. * Demand is inelastic There is a relatively small response in the quantity demanded to a change in price. * Demand is unitary elastic There is an equal percentage response in quantity demanded to a change in price. ...Later on it would be interesting to apply these economic theories to my coursework on Coca Cola and it will be interesting to see what I find out, for example seeing whether Coca Cola is elastic or inelastic e.t.c. My definitions and theories came from specific worksheets and a text book which I got out of my local library. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Marketing & Research section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Marketing & Research essays

  1. Mcdonalds. For this unit I will need to produce a portfolio of work investigating ...

    The objectives which can be achieved with being motivated and working hard is customers needs will be fulfilled, the business will be able to introduce more new products and so the sales will increase. Training and Development Team skills are needed for training and development purposes.

  2. Marketing Research

    5.6 Consumer PANELS/omnibus panels Difference between panel and survey: In a survey, a fresh sample is selected In a panel research, the same panel is used again and again for the collection of information. A panel comprises of respondents who may be House wives ----(for getting information on household products or channel viewing habits etc.)

  1. Applied Business Unit 2 Coursework

    Job title is also shown. No 12/21 Google jobs, product management Appendix 40 Yes Yes Yes "cs degree" No Yes Briefly says "cs degree preferred" Yes Yes at the top of the page on the website Yes Yes 20/21 As you can see all three of these person specifications are very different in content.

  2. For this assignment I have been asked to produce a new marketing strategy for ...

    I will look at the followings in order to find useful information on Secondary research: ? Internet ? AVCE Business book ? Magazines ? New papers ? Leaflets ? CD-ROM ? Keynote ? Coca Cola student handbook Which data is better?

  1. I am going to be writing about the concepts of marketing distinctiveness of the ...

    As their service is really good and the minute someone drops a drink they clean it and also provide you with another drink. The sales of goods ACT 1979 Is just a law made by individuals to give a customer the right to return the products and get a refund


    For HR coils, the rate has been revised to 15%, while for galvanized plain/galvanized coated and cold rolled, the present rates are at 17% and 18% respectively. DEPB Scheme has been made further attractive by including SAD in DEPB with effect from 1st April, 2002.

  1. Outline the main reasons why most companies pursue profit maximisation as their main business ...

    P1 and Q1 occur when supply and demand are in equilibrium The change in price/demand when demand/price is changed, respectively, is known as elasticity and is defined by Begg, D. and Ward (2004, p36) as "a measure of responsiveness of demand to a change in price...

  2. Business Enterprise unit 5

    many different legal structures that my business venture takes, however I need to carefully look at all the possibilities and carefully decide which one is most suited. The legal structures analysed includes: Sole trader Sole trader is used in connection with a business; it describes the status and legal ownership of the enterprise.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work