Consider a market transaction that you have recently undertaken for considering) as a consumer which was notable because it is particularly recent. large, or unusual. Analyse this transaction from a micro-economic standpoint a. Explain how & why (from the supplier perspective, the good or service of your choice was created, and the reason you entered the market to secure this product or service (on demand side). b. Discuss in general terms the factors on the demand and supply sides that will have influenced the price you paid for this product. Show what might happen to the price of the product if one of these factors changes in the equilibrium framework c. Assess whether the product of your choice is likely to be price elastic or inelastic at the current market price (from demand perspective). Following this assessment describe the likely impact on the supplying company's revenue following an increase in the price they charge (ceteris paribus)
Consider a market transaction that you have recently undertaken for considering) as a consumer which was notable because it is particularly recent. large, or unusual. Analyse this transaction from a micro-economic standpoint
a. Explain how & why (from the supplier perspective, the good or service of your choice was created, and the reason you entered the market to secure this product or service (on demand side).
b. Discuss in general terms the factors on the demand and supply sides that will have influenced the
c. Assess whether the product of your choice is likely to be price elastic or inelastic at the current market price (from demand perspective). Following this assessment describe the likely impact on the supplying company's revenue following an increase in the price they charge (ceteris paribus)
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