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About Lecture Notes 2
This appendix provides a casual model to help managers predict how changes in market variables may impact firm performance. It presents a basic economic model of supply and demand using linear curves. Through a numerical example, it shows how shifts in demand or supply elasticity would affect market equilibrium price when demand declines by 30%. A decline in demand would lower price by 16-17%, while a decrease in supply elasticity would result in a slightly larger price drop of 17-18%. The appendix aims to demonstrate how managers can use simple causal models to form beliefs about how future market conditions may change.
Detailed Information
| Author: | ['garu1991'] |
|---|---|
| Publication Year: | 2018 |
| Pages: | 15 |
| Language: | English |
| Format: | |
| Price: | FREE |
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