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  #21  
Old 11-08-2004, 04:27 PM
Jim Bon Jovi Jim Bon Jovi is offline
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Quote:
Originally Posted by Davesta
The answer is actually b) See revenue decrease.

Ceteris Paribus, if demand is inelastic and supply falls, then revenue will fall.
Only if he keeps the price the same which he won't do, he'll jack it up to a new equilibrium.

not heard ceteris paribus mentioned at all this year which is kinda wierd cause my old economics lecturer managed to drop it into every 3rd sentence.
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  #22  
Old 11-09-2004, 12:16 PM
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Quote:
Originally Posted by Mongoose
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Haha. I´m just learning this stuff, 2 months now, and in finnish

I hardly think thats an achievement, since you are infact Finnish.

My point exactly...which I think you missed.
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  #23  
Old 11-11-2004, 01:26 AM
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Rosscoe Rosscoe is offline
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Quote:
Originally Posted by Jim Bon Jovi
Quote:
Originally Posted by Davesta
The answer is actually b) See revenue decrease.

Ceteris Paribus, if demand is inelastic and supply falls, then revenue will fall.
Only if he keeps the price the same which he won't do, he'll jack it up to a new equilibrium.

not heard ceteris paribus mentioned at all this year which is kinda wierd cause my old economics lecturer managed to drop it into every 3rd sentence.
I haven't done economics for 2 years, but if I remember right it means, all things remaining equal. As in nothing else changes except for one thing, which never does happen anyway.
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