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Curve final presentation
Curve final presentation
Curve final presentation
Curve final presentation
Curve final presentation
Curve final presentation
Curve final presentation
Curve final presentation
Curve final presentation
Curve final presentation
Curve final presentation
Curve final presentation
Curve final presentation
Curve final presentation
Curve final presentation
Curve final presentation
Curve final presentation
Curve final presentation
Curve final presentation
Curve final presentation
Curve final presentation
Curve final presentation
Curve final presentation
Curve final presentation
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Curve final presentation

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Transcript

  • 1. PRICE BEHAVIOUR OF SOYABEAN OIL AND PALM OIL MICRO ECONOMICS Id: 112113071 Course Teacher Prof. Dr. BAQUI KHALILY
  • 2. CONTENTSLaw of DemandShifting of demand curveLaw of SupplyElasticity of DemandMarket Equilibrium PriceIncome and Substitution Effect
  • 3. Law of Demand for Soyabean OilPrice(Taka/Lit) Demand(per month) TK.120 10 Kg/Lit TK.128 7 Kg/Lit TK.135 5 Kg/Lit Table: Demand for Soyabean oil
  • 4. P(tk) D 135 128Price of Soyabean Oil 120 D 0 5 7 10 Q(Soyabean Oil)
  • 5. Law of Demand for Palm OilPrice (Taka/ Lit) Demand (Per month) TK. 95 4 Kg(Lit) TK.106 3 Kg(Lit) TK.112 2 Kg(Lit)
  • 6. P(tk) DPrice of Palm Oil 112 106 95 D 0 2 3 4 Q(Palm Oil)
  • 7. Shifting of Demand Curve D P(tk)Price of Soyabean Oil D 120 D D 0 5 7 10 11 Q(Soyabean Oil) Figure : Shifting of Demand Curve for Soyabean OilWhen income increases from tk 25,000 to tk. 30,000
  • 8. Shifting of Demand Curve P tk DPrice of Palm Oil D 95 D D 0 2 3 4 5 Q(Palm Oil) Figure: Demand Curve Shift for Palm Oil When income increases from tk 25,000 to tk. 30,000
  • 9. Law of Supply for Soyabean OilPrice (Tk./per liter) Supply (per month) Tk.120 400 Tk.128 450 Tk.135 550 Table3: Supply for Soyabean oil
  • 10. Law of Supply P(tk)Price of Soyabean Oil S 135 128 120 S 0 400 450 550 Q(Soyabean Oil)
  • 11. Law of Supply for Palm OilPrice (Tk/ kg) Supply(Per Month) Tk. 95 100 Tk. 106 150 Tk. 112 200 Table: Supply for Palm Oil
  • 12. Law of Supply P tk 112 106Price of Palm Oil 95 0 100 150 200 Q(Palm Oil) Table: Supply for Palm Oil
  • 13. Price elasticity for Soyabean oil Price(Tk) Quantity (litre) Ep 120 10 - 128 7 4.5 135 5 5.2 Here Ep > 1 it indicates demand of soyabean oil is elastic.
  • 14. If price is increased by 1% then demand willdecreased by 4.5% If price is increased by 1% then demandwill decreased by 5.2%
  • 15. Price Elasticity for Palm oil Price (Tk) Quantity Ep (Litre) 95 4 - 106 3 2.16 112 2 5.89
  • 16. If price is increased by 1% then demand willdecreased by 2.16% If price is increased by 1% then demand willdecreased by 5.89%
  • 17. Income Elasticity for Soyabean Oil Income Quantity EI (Tk) (Litre) 25,000 10 - 30,000 11 .50 40,000 13 .55
  • 18. •If 1% change in income leads to .50% change inquantity demand for Soyabean Oil.•If 1% change in income leads to .55% change inquantity demand for Soyabean Oil.
  • 19. Income Elasticity for Palm Oil Income Quantity E I (Tk) (Litre) 25,000 4 - 30,000 5 1.25 40,000 7 1.20
  • 20. •If 1% change in income leads to 1.25% change inquantity demand for Palm Oil.•If 1% change in income leads to 1.20% change inquantity demand for Palm Oil.
  • 21. Price of Oil per liter P(tk) S P2 Excess Supply E D=S Po Excess Demand P1 D 0 Qo Q Figure 5: Equilibrium Price & Quantity
  • 22. Income and Substitution Effect P1 Y P • C •B • A Palm Oil IC1 IC2 X1 O X X" X Soyabean OilFigure: Substitution and Income Effect (whenprice of soyabean oil increases)

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