Questions from Managerial Economics

Q: Define the rationing function of price. Why is it necessary for

Define the rationing function of price. Why is it necessary for price to serve this function in the market economy?

Q: Define the guiding or allocating function of price.

Define the guiding or allocating function of price.

Q: Following are three sample equations. Plot them on a graph in

Following are three sample equations. Plot them on a graph in which Q is on the vertical axis and P is on the horizontal axis. Then transform these equations so P is expressed in terms of Q and plot t...

Q: Discuss the differences between the short run and the long run from

Discuss the differences between the short run and the long run from the perspective of producers and from the perspective of consumers.

Q: Explain the difference between shortages and scarcity. In answering this question

Explain the difference between shortages and scarcity. In answering this question, you should consider the difference between the short run and the long run in economic analysis.

Q: Why do you think it is important for managers to understand the

Why do you think it is important for managers to understand the mechanics of supply and demand both in the short run and in the long run? Give examples of companies whose business was either helped or...

Q: State the general meaning of elasticity as it applies to economics.

State the general meaning of elasticity as it applies to economics. Define the price elasticity of demand.

Q: Suppose the federal tax on gasoline increased by 5 cents per gallon

Suppose the federal tax on gasoline increased by 5 cents per gallon. Do you think that such an increase, reflected in the price of gasoline, would have a significant impact on gasoline consumption?

Q: Why do you think that whenever governments (federal and state)

Why do you think that whenever governments (federal and state) want to increase revenues, they usually propose an increase in taxes on cigarettes and alcohol?

Q: A company faced by an elastic demand curve will always benefit by

A company faced by an elastic demand curve will always benefit by decreasing price. True or false? Explain.