Answer:
The correct answer is letter "A": larger; demanded.
Explanation:
Elasticity is the characteristic of goods and services by which their quantity demanded changes in proportion to the change in prices. <em>Elasticity is calculated by dividing the percentage change in the quantity demanded by the percentage change in price. </em>
<u><em>If the result is equal to or greater than one (1), the demand for the product is elastic, meaning a minimum change in price causes a greater change in quantity demanded</em></u>. If the result is lower than 1, the demand is inelastic which implies that changes in the price of a product almost do not change the quantity demanded.
Answer
A. 9.9%
The answer and procedures of the exercise are attached in the images below.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Answer:
Overreaction and correction
Explanation:
Stock overreaction can be defined as the difference between the lowest price of stocks as a result of an event; e.g an election; and the price of the stocks after the event, after a period of time.
Stock correction on the other hand can be defined as a 10% or more decrease or decline in the value of an the financial market.
Each of stock overreaction and correction have causative events, as those events are the determinants of the change in the prices of stocks during the said time.
For stock price correction, it usually occurs as a result of economic issues. Stock correction can take from weeks to months to happen and it can have a damaging effect on stocks on the short term but could actually be good for the stock prices if the correction occurs over a longer period of time.
Stock price overreaction, as seen from the definition, can be caused by an election or an event within the floor of teh stock exchange which excites stocks at that period.
Cheers.
Answer:
Stock out costs increase
Carrying costs decrease
Explanation:
Just in time (JIT) decreases total inventory and increases the number of deliveries made by the company's vendors.
Since the company is going to hold fewer materials and components, then the risk of an stock out increases, resulting in higher stock out costs.
The total inventory will decrease, therefore, the carrying costs will also decrease.
