Answer:
The answer is: remain the same
Explanation:
The marginal utility of a good or service is how much better we feel when consuming an extra unit of that good or service. For example if we are very thirsty, the marginal utility of consuming a can of Coke is very large, but once our thirst is quenched, an extra can of Coke will not provide use with that much satisfaction as before.
If the price of a substitute good increases, the marginal utility of the good whose price didn't change, will remain the same.
Let's go back to the Coke example. An extra can of Coke will give me 5 more satisfaction units (I'm assuming I can measure satisfaction) and an extra slice of pizza will give me 7 more units of satisfaction. If the price of Coke increases from 50 cents to $1, its marginal utility will decrease. I will buy more pizza because the satisfaction I get from drinking Coke is now smaller.
Answer:
Explanation:
Q(8) =15 - 0.5 x 10 - 0.8 x 8 = 15-5-6.4=3.6
Q(10) =15 - 0.5 x 10 - 0.8 x 10 =15-5-8= 2
Cross Elasticity = -0.2 / 0.8 = -0.4
Answer:
The correct answer is $479,500.
Explanation:
According to the scenario, the computation of the given data are as follows:
We can calculate the total revenue by using following formula:
Total revenue = Net sale + Dividend revenue + Rent revenue
Where, Net sales = Sales revenue - Sales return
= $445,000 - $34,000 = $411,000
By putting the value in the formula, we get
Total revenue = $411,000 + $10,500 + $58,000
= $479,500
Answer: Demand based pricing
Explanation:
Ray-Ban's plan of gathering information about the other brands sold in department stores, which includes their prices, would most likely be used in a demand based basis for pricing
Demand-based pricing, refers to the method of pricing whereby the fluctuations in the demand of consumers is considered.
Due to the flctuations, the prices are adjusted in a way that fits the changes in the values of the product.