M1S-Supply and demand curves in BUS530-Managerial economics guide managers in decision-making relating to the firm’s customers, competitors, and suppliers. Managerial Economics helps in enhancement of analytical skills, assists in rational configuration as well as the solution of problems. Additionally, the concept of elasticity in economics is present in economic theory, which constitutes the theory of the firm. The theory of the firm states that the primary aim of the firm is to maximize wealth. Decision making in managerial economics involves the establishment of the firm’s objectives and identification of problems involved. Lastly, M1S-Supply and demand curves in BUS530-Managerial economics assists in the identification of issues and the development of various alternative solutions.
For more information on M1S-Supply and demand curves in BUS530-Managerial economics, click
DEMAND CURVE IN BUS530-MANAGERIAL ECONOMICS
M1S-Supply and demand curves in BUS530-Managerial economics contribute to managerial decision making. The demand curve shows the amount of a good that will get purchased at alternative prices. Frequently, a demand curve is in a graph form, with all variables in the demand function fixed. The concept of elasticity in economics is evident in the automobile demand function equation. Hence, in the equation, income, population rates, and advertising expenditures are held constant. The equation ensures identification of demand curve relation between new domestic automobile prices and quantity demanded. Sorting out the impacts of factors on-demand analysis one of the most challenging aspects of BUS530-Managerial economics.
For more information on the demand curve in BUS530-Managerial economics, click
THE CONCEPT OF ELASTICITY IN ECONOMICS AND ESPECIALLY IN THE SUPPLY CURVE
The supply curve helps us understand the concept of elasticity in economics. A supply curve is a graphical representation of the supply schedule of a product. The supply curve styles help us understand product supply sensitivity to the ratio of change in the price. Some products respond very quickly to small changes in the price while others take a long time. M1S-Supply and demand curves in BUS530-Managerial economics can help a lot in public policy. Public managers can measure how to increase and decrease a product’s supply by making changes in its price. For example, tobacco is dangerous and creates a negative externality for the closer ones. The best policy would be increasing the cost of smoking, which reduces smoking and generate revenue for smokers. A supply curve is, therefore, a useful tool in BUS530-Managerial economics.
Additional attachments
