Be a thinkercalculate, illustrate, and explain

A firm producing decorative candles lowers the price of one of its scented candles from $4 to $3.60 and finds that the weekly quantity demanded of the candles goes up from 600 per week to 630.

1. Calculate the percentage changes in price and quantity demanded.

2. Calculate the price elasticity of demand for the scented candles.

3. Calculate the change in total revenue that the firm will experience following the fall in price.

4. Draw a revenue box diagram to illustrate the effect on quantity demanded and total revenue following the price change for the scented candle.

5. Was the firm sensible to lower the price of the scented candles? Explain your answer.

A pizzeria lowers the price of its most popular takeaway pizza, the Margherita, from $5 to $4.50 and finds that the weekly quantity demanded of the pizzas goes up from 60 per week to 72.(K/T)

1.Calculate the percentage changes in price and quantity demanded.

2.Calculate the price elasticity of demand forthe pizzas.

3.Calculate the change in total revenue that the pizzeria will experience following the fall in price.

4. Draw a revenue box diagram to illustrate the effect on quantity demanded and total revenue following the price change for the Margherita.

5.Was the firm sensible to lower the price of the Margherita? Explain your answer.

A huge open-cast coal-mining project by a British rm, that would involve moving the homes of up to 130 000 workers in Bangladesh, is at the centre of an international row. The company, GCM, plans to dig up to 570 million tonnes of coal in a project that will displace people from Phulbari, in north-west Bangladesh. A river will also have to be diverted and the mangrove forest, which is a world heritage site, would be destroyed too. The project has attracted widespread hostility. In protests against the scheme 18 months ago, three people were killed in an area now said to be controlled by the armed forces. Many international campaign groups have written to the Asian Development Bank demanding that it turns down a $200 million loan for the project. The World Development Movement is claiming that the social and environmental damage can never be repaired if the scheme receives government approval. A spokesman for GCM, on the other hand, stressed the importance to one of the world's poorest countries of jobs, incomes and exports.

Using examples from the case study,

1. Explain any 2 differences between internal and external stakeholders.

2. Explain the benets of any two stakeholder groups resulting from this mine project

3. Explain the disadvantages to any two stakeholder groups resulting from this mine project