Answer:
C
Explanation:
The prices will lower and the the amount of goods will increase
Answer:
Option (c) is correct.
Explanation:
Given that,
Price elasticity of supply for cheese = 0.6 in the short run
Price elasticity of supply for cheese = 1.4 in the long run
If an increase in the demand for cheese causes the,
Price of cheese to increase by 15%
In short run,
Price elasticity of supply for cheese = Percentage change in the quantity supplied ÷ Percentage change in the price
0.6 = Percentage change in the quantity supplied ÷ 15
0.6 × 15 = Percentage change in the quantity supplied
9% = Percentage increase in the quantity supplied
In long run,
Price elasticity of supply for cheese = Percentage change in the quantity supplied ÷ Percentage change in the price
1.4 = Percentage change in the quantity supplied ÷ 15
1.4 × 15 = Percentage change in the quantity supplied
21% = Percentage increase in the quantity supplied
Answer:
Letter B is correct. <em>Lead Users</em>.
Explanation:
Term developed by prof. Eric von Hippel, Lead Users are those users who are able to transform, adapt and modify a company's product or service for their own benefit, as they face the same market needs a while before regular users.
For Prof Eric von Hippel, there are four steps in developing Lead Users:
- Preparation,
- Needs and Trends Identification,
- Lead Users Identification, and
- Concept Design.
The premise is that the Lead Users method is effective in identifying innovation and product trends that need to be developed for a market for your needs.
Answer:
The Draper Corporation would be indifferent between continuing and discontinuing of Doombugs at 20,000 units.
Explanation:
The draper should be indifferent at the level at which they covered all of their Fixed Cost.
The sales price per unit is ⇒ 150,000/15,000 = 10 per unit
The Variable cost per unit is ⇒ 120,000/15,000 = 8 per unit
The Break-even units for Draper should be:
Break-even units = <u> Fixed Cost </u>
Sale price - Variable Cost
Break-even units = <u>40,000</u>
10-8
Break-even units = <u>40,000</u>
2
Break-even units = 20,000 units
When the price of a good rises, consumers buy a smaller quantity because of the substitution effect and the income effect. A change in the relative prices of goods results in change in consumption of that goods and that is denoted as the substitution effect. T<span>he change in purchasing power on the other hand which also result in change in consumption is referred to as the income effect.</span>
