MBA 5102: Managerial Economics Midterm Exam ; Explain the difference between substitution effect and income effect

MBA 5102: Managerial Economics Midterm Exam ; Explain the difference between substitution effect and income effect 150 150 Affordable Capstone Projects Written from Scratch

What do you understand by the following economic concepts and how can each be used in managerial decisions of a company or organization?

Scarcity

opportunity costs

scale of preference

choice

marginal cost

marginal benefit

PART II

Explain the difference between substitution effect and income effect

what is the difference between changes in the quantity demanded and changes in demand

what is the difference between normal and inferior goods

explain the difference between business risk and financial risk

What is the difference between the supply schedule and the supply curve

PART III

What is meant by demand

What are the factors affecting demand

what is meant by supply

what are the factors affecting supply

PART IV

Draw and label a market equilibrium curve

show shortage and surplus areas in your graph

what is the difference between surplus and shortage

How can your graph be used to make managerial decisions?


 

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