Principles of Economics Research Paper Example | Topics and Well Written Essays - 1500 words

Principles of Economics - Research Paper physical exercisesgruntling customers, suppose that the company may introduce a different type of programming that is cheaper for the company to stomach yet is equall(a)y appealing to customers. Explain what would be the effects of this action. The law of take states that, ceteris paribas, the higher the wrong of a commodity, the less the demand will be. On the other hand, the law of supply states that, all factors creation constant, sellers are more willing to supply goods at a higher equipment casualty than at a lower price. This theoretical point at which sellers are willing to supply goods and buyers are getting all the commodities they are demanding is referred to as the equilibrium. The equilibrium is depicted in the figure below radiation diagram 1 securities industry equilibrium chart (Economics Basics Demand and Supply, 2011) If the government make a price capital law on product line TV that sets the price below the current equilibrium price both things will happen immediately (1) cable TV sellers will find the business concern less winning because of increased possibility of lower revenues and thus they will lower their supply. (2) Consumers will find the lower prices sweet and thus they will increase their consumption and demand for cable TV. After some duration, the huge consumer demand and low supply will cause consumers to compete for the few cable TVs available. This is depicted below Figure 2 Effect of price ceiling (Taylor, 2006) In a free market economy, the consumer competition for cable TVs will push the prices up, which will make sellers want to supply more and hence bring the price closer to its equilibrium. However, in this case, the price ceiling prevents suppliers from increasing the supply because of the low marginal benefits compared to marginal court of supplying cable TVs. This eventually... The rationale for releasing the new guidelines to be used by the Department of evaluat or and the Federal treat Commission for evaluating proposed mergers is to provide more clarity and transparency to businesses seeking to engage in mergers and acquisitions. This way business can tell beforehand whether they will be successful with their application or not. Additionally, the new Guidelines take into account changes that have taken place in the legal and economic arenas since the extend revision in 1992. From the guidelines one thing that stands out is the Department of Justices and the Federal Trade Commissions focus on protecting competition and innovation within the American business sector. Mergers and acquisitions that may substantially lower competition, or to tend to create a monopoly will be rejected. So too will those M&As that are viewed as done to kill innovation. Some of the study implications of these guidelines are that (1) it will enable companies save on resources that they may have wasted on a merger or acquisition that ends up being disapproved an d (2) it provides the legal fraternity with more clear guidelines for those who would equal to seek legal redress