Answer:
1. The situation when law of demand is not applicable is known as it's EXCEPTION.
2. When price of one good affects to the demand for other good, this situation is known as CROSS ELASTICITY OF DEMAND
3. Demand is the effective desire backed by the ABILITY and WILLINGNESS to buy the product.
Explanation:
Demand is a term that is born out of the human desires , wants or needs.
Demand can be defined or referred to as the amount a consumer is able and willing to pay in other to purchase goods and services that they desire or want.
The Law of demand states that the Quantity of goods and services demanded is inversely proportional to the prices of these goods and services. This means when the prices of goods increase, the quantity demanded decreases and when the prices of goods decreases ,the quantity of goods and services demanded increases.
Elasticity of Demand can be defined as the responses or effects of changes in price of goods and services on changes in the quantity demanded.
We have 4 types of Elasticity of Demand
a) Price Elasticity of Demand: This is when the quantity of goods and services demanded is affected by the change in price.
b) Price Elasticity of Supply: This is when the quantity of goods and services supplied is affected by the change in price.
c) Cross Elasticity of Demand: This is when the price of one good affects to the quantity demanded for other good,
d) Income Elasticity of Demand: This when the quantity of goods and services demanded is affected by the changes in the income of the consumer.
There are situations whereby the law of demand is not applicable and this is referred to as it's exceptions. Those situations are:
a) The type of goods and services.
b) When changes in the price of the goods and services is expected by consumers.
c) Changes that occurs in fashion or styles of a particular product ( This is when a product goes out of fashion or the style becomes outdated)
Jim and Jane purchased their house a year ago and have been transferred out of town. They paid $275,000 for the property and ended up after expenses with only $225,000. Their percentage of loss on the sale was:
Answer:
18%
Explanation:
Original cost: $275,000
Selling price: $225,000
Loss: $50,000
50,000/275,000=0.18
0.18x100=18%
:)
Now suppose firm x undertakes a process innovation that reduces its marginal cost of production from $20 to $15. the fixed cost of undertaking this process innovation is f > 0. is this a tough commitment or a soft commitment? why? for what values of f would it makes sense for firm x to make this commitment?
Answer:
(A). It is a tough commitment.
(B). when the value of f is less or equal to 198.
Explanation:
So, we are given from the question above that;
=> there is reduction in the marginal cost of production from $20 to $15.
=> Also, the fixed cost of undertaking this process innovation is f > 0.
Recall that the demand functions is given as;
Qx = 80 – 2Px + Py. ------------------(**).
Qy = 80 – 2Py + Px a).---------------------(***).
Hence, if we Differentiate πx with respect to Ax we will have that;
(Px - 15) × (-2) + ( 80 - 2Px + Py) = 0. ----------------------------------------------------------(1).
=> 110 + Py = 4 × Px.
Solving for Py and Px using the Bertrand equilibrium gives;
Px = 37.3 and Py = 39.3.
If we slot in the values of Py and Px above into the demand function in equation (**) and (***) we will have;
Qx = 44.7 and Qy = 38.7.
Before innovation = (40 - 20) × 40. = 800
Then, (39.3 - 20) × 38.7 = 747.3 is the after innovation.
(37.3 - 15) × 44.7 - f.
=> 997.5 - f (after innovation).
The values of f would it makes sense for firm x to make this commitment when;
after innovation > before innovation.
997.5 - f > 800.
=>f is less or equal to 198.
The managers at Alpha Corp. are closely observing trends in the industry. They are trying to identify factors that might have a significant influence on Alpha's business operations. Which of the following concepts is illustrated in the scenario?
Answer:
Environmental scanning
Explanation:
Environmental scanning is when information is being gathered about external forces inorder to know the factors that have impacts on a business. It is also the gathering of information on situations which allows a business create and build good customer relationship.
Business environments are dynamic and could have impacts on the success of a firm hence requires business scanning inorder to align with the trend. One the purpose of environmental scanning is to provide future business directions to an organization and also assist in analyzing the strength, weakness, opportunities and threats to an organization.
Factors that might have significant influence on business operation includes but not limited to social and demographic factors, how competitors are reacting, technology, how well customers are reacting to the company's products, creditors, legal issues etc.
New oil is reserves are discovered. What has increased in supply.
A CAPITAL
B ENTERPRISE
C LABOUR
D LAND
The correct answer is D. Land
Explanation:
In economics, land is one main factor of production and includes natural resources that can be used to make products, for example, wood can be used to made furniture or fruits can be used to produce juice, jam, and similar. Also, these resources are classified into renewable and nonrenewable depending on whether they are abundant and replenish in a short time. Oil is considered part of the land factor because this is a non-renewable resource that is used to produce goods such as fuels or plastic. Therefore, if new oil reserves are discovered there is an increase in land supply because more natural resources are available to produce goods.
A pet shop owner had a parrot with a sign on its cage that said "Parrot repeats everything it hears". Davey bought the parrot and for two weeks he spoke to it and it didn't say a word. He returned the parrot but the shopkeeper said he never lied about the parrot.
How can this be?
the shopkeeper lied or the parrot is shy
Privatisation refers to ....
A)Transfer of assets from people to government
B)Transfer of assets from public to private
C)Transfer of assets from corporate to public
D)Transfer of assets from corporate to government
Answer:
B)Transfer of assets from public to private
Explanation:
the government no longer owns the asset and it is traded to the private sector or when the company is taken over by a few people.
A credit card company advertises an APR of 15.3%, compounded daily. What
is the effective interest rate? Round your answer to two decimal places.
O A. 15.76%
O B. 16.53%
O c. 15,50%
O D. 16.47%
Answer:
B. 16.53%
Explanation:
The effective interest rate is the real interest rate charged by a bank or any other type of lender on a loan.
the formula to calculate effective interest rate = r = (1 + i/n)ⁿ - 1
i =15.3%n = 365 daysr = [1 + (15.3%/365)³⁶⁵] -1 = 1.00419178³⁶⁵ - 1 = 1.165287621 - 1 = 0.165287621 ≈ 16.53%
why is the leaf washed with distilled water
Select the correct answer.
Which pricing strategy is a store using when it sells shoes at $79, $99, and $299?
A. economy pricing
B. penetration pricing
C. premium pricing
D. psychological pricing
E. price skimming
Answer:
D
Explanation:
The action being used here is the psychological pricing action.
It tends to appeal to the buying reasoning of the buyer. In this system of pricing, the prices of goods are intentionally placed using odd figures. This is because, it is believed that setting prices at these type of price ranges have a psychological effect on the consumer
The 0.01 cent difference would appeal to the psychological thinking of the consumer, thereby making him purchase the goods which in fact is same price when looked at technically
All in all, the pricing system is looking to make the buyer take a decision which will favor the seller as the fractional bits taken off the price would appear to the customer as if he’s purchasing at a lesser price which is technically not so
Answer:
D. psychological pricing
Explanation:
right on edmentum
For those brave enough to act effectively now to stabilise and protect your business and maintain liquidity, opportunity will come." Explain whether the Statement of Cash Flows is able to illustrate the ‘liquidity' of an entity to its users and provide ONE recommendation how companies can maintain liquidity during this pandemic.
Answer:
1. Yes. Cash flows are able to illustrate liquidity.
2. Recommendations
a. Reducing levels of Inventory.
b. Negotiating Longer credit settlement period with suppliers.
Explanation:
One of the uses of a Cash flow Statement is its use in negotiating loans with bank and other lenders. Of interest to these parties is the liquidity of the entity.
Liquidity is the ability of an entity to honor its short-term obligations using its current assets. Liquidity is reflected in the Cash flow from Operating Activities of the Cash flow Statement.
Recommendation
Companies can maintain liquidity through reducing levels of inventory. Inventory ties up cash. Negotiating longer credit settlement period with suppliers can also increase liquidity.
Consider a second hand car market where three types of cars are being sold: High quality (H), medium quality (M) and low quality (L). Sellers value an H at $2000, an M at $1200 and an L at $800, whereas buyers value an H at $1800, an M at $1600 and an L at $1400. As discussed in the "Akerloff's Lemons Market", sellers are able to distinguish between different quality cars but buyers are not and a buyer believes that in this market 40% of the cars is an H, 30% of the cars is an M and 30% of the cars is an L. a) Determine which type of cars will be sold at the efficient allocation. b) Determine which type of cars will be sold at the market equilibrium.
Answer:
a) Determine which type of cars will be sold at the efficient allocation.
All cars would be sold in a Pareto efficient allocation.
In a Pareto efficient market, resources are all allocated in teh most efficient possible way. This is the reason why this is just a theoretical concept that does not necessarily apply in real life.
b) Determine which type of cars will be sold at the market equilibrium.
Since consumers are only willing to pay up to $1,620 for a used car, only medium quality and low quality cars will be sold. The price of high quality used cars is higher than the equilibrium price.
Explanation:
the most a buyer would be willing to pay for a used car is ($1,800 x 40%) + ($1,600 x 30%) + ($1,400 x 30%) = $720 + $480 + $420 = $1,620
Zoom In, Inc. is engaged in the business of coding, with an emphasis on Internet marketing, business apps, and intra-corporate networks. In all of Zoom In’s business activities, it is subject to United States laws and regulations. The basis for all law in the U.S. is _________.a. the U.S. Constitution.
b. the executive orders of the president.
c. each of the states' individual constitutions.
d. legislation enacted by Congress.
Answer:
Option A. The U.S. Constitution.
Explanation:
The reason is that the US constitution provides the basic framework for the laws to be formulated and passed both in the US National Assembly and the Senate. The laws cannot be formulated if the US constitution doesn't allows the passing of the law which means that the constitution must be amended first. When the slavery was to be eliminated in 1865, the first problem was that passing the elimination of slavery law was inconflict with the US constitution. So the constitution was amended before passing the law to eliminate the conflict.
In the nutshell, every law originates because of different reasons like Technological reasons, Social reasons, Cultural reason, etc) but the basis remains the same which is US constitution which is the basic framework for passing the law.
5) An advertiser is launching a campaign to educate people on its new products. The products are complex and require more detailed explanation than possible in the ads. So, the advertiser needs to direct people to a microsite to learn more about the products. The advertiser's goal is to direct as many people as possible to this information within its limited budget. Which campaign objective should the advertiser choose & why?
Answer:
The advertiser should optimize the Clicks metric
Explanation:
Remember, we are told that the products are complex and require more detailed explanation than possible in the ads, so it implies improving the clicks metric (number of clicks per user) allows the advertiser to understand whether the users are interested in the ad or web page so as to adjust strategy accordingly.
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Outline two reasons why a business such as AEC could not be
Successful without other firms providing natural resources
Answer:
Because of product's use of natural resources in its input (1) and dependence on the supply chain system of other companies.
Explanation:
The reason is that all of the companies rely on natural resources that the companies are processing and making it available for the other companies to utilize it to control its cost and complete the production of the products. The energy is a natural resource which every company utilizes and due to this its production is largely dependent on the firms that are processing natural resources to make it available for companies to utilize it.
The next most important thing is supply chain system of natural resource companies that helps the companies like AEC and even an individual to make the use of these natural resources in an efficient and effective manner. If I don't have access to fuel, then I cann't travel and traveling by using horses would be expensive and time consuming. So supply chain system of the other businesses play key role here.