gold
gold
Essay Completion-Economics 1
Part 1-Give definitions of different elasticities.
Contextualise with examples and calculations of elasticities.
Part 2-Macro and Micro methods used to deal with price fluctuations.
Micro- branding in order to make more price inelastic
-assurance via brand quality and reliability
-differentiation
-merger/acquisition
-develop research into customer’s real needs
-logistics of demand and supply (short term and long term)
-be customer responsive in order to increase customer loyalty
Macro- Government intervention through government policy
-encourage competition and introduce education programmes
-discourage market power
-encourage the development of alternatives (substitutes)
-use of buffer stocks
-use of subsidies
-tariffs, quotas and other protectionist measures
-export embargo (be careful)
-devote more factor resources –land ,labour and capital.
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