Dopamine Prediction Error Responses †Free Samples to Students

Question: Discuss about the Dopamine Prediction Error Responses. Answer: Introduction: The market demand curve of the Nordic bridge consists with the individual demand curve of the two countries, which are, Denmark and Sweden, who have constructed this bridge jointly (Azevedo Gottlieb, 2017). The demand side of this bridge is seen as perfectly competitive because of some characterizes that form this particular market structure. To travel between these two countries, a person can choose any one of the transport option, viz., bridge, railway and ferry. Hence, from their operational perspective, each means of transport is offering almost same service and hence they are close substitute. Number of passengers of both countries is large for using bridge. The two governments of Sweden and Denmark have made this bridge and can charge price for using this, respectively. Hence, for a particular product, the number of producers is more than one. Each traveler and supplier of this bridge has perfect knowledge about the market, that is, what is the traveling cost for rail and ferry along with services, like time duration to travel from one part to another. The price, charged by the bridge, is determined by the supply and demand of this media of transport; hence, both travelers and builders are price taker. Thus, under this perfectly competitive market, individual demand curve of bridge for both countries along with rail and ferry has an infinite slope, which is represented by a horizontally straight line, where the same line represents average revenue (AR) and marginal revenue (MR) (Dueas, Leung, Gil Reneses, 2015). This is shown below. In figure 1, the individual demand curve of bridge is drawn, which Sweden or Denmark is facing individually. As each country is enjoying a small share of the entire market demand, the travelling cost is determined through the market demand and market supply curve. Hence, the travelling cost of each country is P. However, the market demand curve of this bridge is downward slopping, which indicates that, travelers can shift to rail or ferry, if this bridge has increased its cost of transport, as the market has substitute products (Gerakos Syverson, 2017). As bridge, rail and ferry have possessed a small portion of the entire market, they cannot influence the market demand curve or market price by changing its own price schedule. The market demand curve is shown in the above diagram, which is a downward slopping curve. Thus, an increase in price can reduce the market demand of the bridge and the opposite situation can be occurred as well. In this case study, the supply side is a vertically straight line. This is because, with increasing number of passengers along with their demand for travel more from one country to another one, the constructors of this bridge cannot supply more (Anagnostopoulou, Kagemoto, Sao Mizuno, 2016). As the number of bridge remains same irrespective of the increasing fare of using this bridge, only a vertical line can represent this. In the above figure, a vertically straight line is drawn to represent the supply curve of the bridge, which in turn has implied that, two countries cannot increase the supply of this bridge more through construction. The demand for this bridge has increased due to some non-price determinants, which can further shift the market demand curve and corresponding output by considering supply side of this bridge, as well. It has been observed that people of Sweden use this transport media more to go to Copenhagen, compare to the opposite and consequently, the number of travelers has increased by 75% at the present year compare to that of previous year, during the same period. Moreover, as the bridge is providing uninterrupted transport facility for both countries, two leading newspaper institutions of Denmark and Sweden have started to publish a joint newspaper daily, while at the same time, information technology, health and education facilities are earning positive benefits by large amount after increasing of this cross-cultural communications. The bridge has also positively influenced the cross-cultural communications of both countries through easy contacts. Hence, those factors have positively influ enced the demand side for this bridge, which in turn has influenced the market demand curve of this bridge to shift rightward (Rothenhoefer Stauffer, 2017). This implication can be explained in a better way with the help of diagram, where it is essential to draw the market supply curve of the bridge to determine the effect upon market outcomes of the specified bridge. The above figure has depicted the impact on output and market price of the bridge after the market demand curve for the same has shifted to rightward due to increasing demand. It can be seen that the amount of output has remained same at level Q* as the market supply curve of this bridge is a vertically straight line (Zervas, Proserpio Byers, 2017). On the opposite side, the equilibrium price or travelling charge has increased significantly by P0 P1 amount. Price elasticity of demand represents the degree of responsiveness of the quantity demanded for bridge due to a small change in its own price, that is, percentage change of quantity demanded for bridge due to percentage change in its travel cost (Coglianese, J., Davis, Kilian Stock, 2017). As the bridge has close substitutes in market, its demand curve can be elastic, that is, a small change in price can influence the demand for this bridge significantly. Thus, reducing the price of one-way crossing by 50%, the authority can earn more revenues, as people now choose to use this bridge more to travel, compare to other transportations, which are, railways and ferry (Huerta-Leidenz et al., 2017). The following diagram can represent this scenario appropriately. The above diagram has depicted a perfectly elastic demand curve with a flatter line. As the price has decreased by P1 P0 amount, that is, 50% reduction in price, the amount of travelers has increased by Q1 Q0 amount, which in turn, has helped a country to earn more revenue compare to before. References: Anagnostopoulou, C., Kagemoto, H., Sao, K., Mizuno, A. (2016). Concept design and dynamic analyses of a floating vertical-axis wind turbine: case study of power supply to offshore Greek islands.Journal of Ocean Engineering and Marine Energy,2(1), 85-104. Azevedo, E. M., Gottlieb, D. (2017). Perfect competition in markets with adverse selection.Econometrica,85(1), 67-105. 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