Define demand, define supply, explain the difference between demand and quantity demanded and between supply and supply demanded

List the key nonprice factors that influence demand and supply

In defining demand and supply why do you think economists focus on price while holding constant other factors that might have an impact on the behaviors of buyers and sellers

Define comparative statics analysis. how does it compare with sensitivity analysis or what-if analysis used in finance accounting and statistics

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

Define the guiding or allocating function of price.

Diff Between allocating function 4 and the rationing function

Q13

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

from the perspective of consumers.

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.

Why do you think it is essential for managers to understand the mechanics of supply and demand think it is

both in the short run and in the long run? Give examples of companies whose business was either helped or hurt by changes in supply or demand in the markets in which they were competing.

"If Congress levies an additional tax on luxury items, the prices of these items will rise. However, this

will cause demand to decrease, and as a result, the prices will fall back down, perhaps even to their original levels." Do you agree with this statement?

Overheard at the water cooler in the corporate headquarters of a large manufacturing concern: "The

competition is really threatening us with their new product line. Let us consider offering discounts on our current line in order to stimulate demand." In this statement, is the term demand being used in a manner consistent with economic theory? Explain. Illustrate your answer using a line drawn to represent the demand for this firm's product line.

Q12