PadhaiBy Astra Cloud
Search notes and questions
Ask a doubtProgramsNoticesGPA calculatorMy studyClassroom

Tribhuvan University

BSc CSITBachelor of Science in Computer Science and Information TechnologyBCABachelor of Computer ApplicationBITBachelor of Information TechnologyBIMBachelor of Information ManagementBBABachelor of Business AdministrationBBSBachelor of Business StudiesBBMBachelor of Business ManagementBITMBachelor of Information Technology Management

Pokhara University

BE Computer (PU)Bachelor of Engineering in Computer EngineeringBBA (PU)Bachelor of Business Administration (Pokhara University)

National Examinations Board (+2)

Class 10Class 10 (SEE)+2 Science+2 Science (Class 11 and 12)+2 Management+2 Management (Class 11 and 12)+2 Humanities+2 Humanities (Class 11 and 12)
All universities and programs

Elective microeconomics for business

microeconomics for businessTU Board 2082

Give examples of demand increasing innovations in Innovation Theory of Profit.

2

Answer

· Based on the official syllabus and past papers
Updated
Quantity (Units)Price (NPR)OOriginal Demand (D₀)New Demand (D₁) [Innovation Effect]E₀Q₀P₀E₁Q₁P₁
Demand shift due to innovation (D₀ → D₁): Higher willingness-to-pay at every quantity

Innovation Theory of Profit identifies demand-increasing innovations as those that expand market size or create new preferences, allowing firms to charge higher prices or sell more at existing prices. Key examples include:

  • Smartphones: Apple’s iPhone (2007) revolutionized mobile technology, creating demand for high-end devices by integrating apps, cameras, and internet access.
  • Electric Vehicles (EVs): Tesla’s Model S (2012) introduced autonomous features and long-range batteries, shifting consumer preferences toward EVs over traditional cars.
  • Streaming Services: Netflix’s shift to online streaming (2007) eliminated physical DVD rentals, expanding demand for digital entertainment.
  • Health Tech: Fitbit’s wearable fitness trackers (2007) created demand for health monitoring, attracting new users to fitness markets.
  • E-commerce: Amazon’s one-click ordering (1997) reduced friction, increasing online shopping demand beyond traditional retail.

These innovations shift the demand curve rightward (D₀ → D₁), enabling firms to capture monopoly profits temporarily.

Discussion

Loading…

More microeconomics for business questions

Draw a production possibility curve and show the efficient and inefficient combinations of production of an economy on the curve?TU Board 20822State the factors causing leftward shift of supply curve of an apple farm.TU Board 20822Define advertisement elasticity of demand.TU Board 20822Why do indifference curves not intersect each other?TU Board 20822Derive isocost line when total cost outlay is Rs.4000, wage rate is Rs.200 and rental rate of capital is Rs.400.TU Board 20822Write the formula for calculation of marginal product of labor ( MP L ) and average product of labor ( AP L ).TU Board 20822

All microeconomics for business old questions