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3 years ago

7

Describe a product, and then give an example of a time when the demand for this product might be high and the demand for this pr

oduct might be low.

1 answer:

d1i1m1o1n [39]3 years ago

7 0

An inner tube for a swimming pool would be in high demand during the summer months, and in incredibly low demand in the winter months.

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For each of the following pairs of goods, state whether the cross-price elasticity is likely positive, negative, or zero. Explai

ioda

Answer:

a. Hulu and Netflix.

Positive. They are close substitutes

Hulu and Netflix both provides television shows, so a consumer can choose between them. They are good substitutes

b. Tortilla chips and salsa.

Negative. They are complements.

Tortilla chips are consumed with salsa sauce. So a demand for salsa increases so does demand for tortilla chips.

c. Movie and popcorn.

Negative. They are complements.

The more people watch movies the more they will want to buy popcorn.

d. Running shoes and high heels

Close to zero. While they are substitutes they are not close substitutes.

Each has its own time of use. Consumers by them independently.

Explanation:

Cross price elasticity is a measure of the quantity demanded of one good to changes in price of another good.

So when a good's demand reduces with increase in price of another it is negative cross price elasticity. This is common with complements.

When quantity demanded of a good increases with increase in price of another, they are substitutes.

However when there is little effect on the quantity demanded with increase in price of the other good they are unrelated

4 0

3 years ago

Explain the value of applying the recency/fre- quency/monetary assessment to an organization's cus- tomer database Is it possibl

maks197457 [2]

Answer:

RFM stands for Recency, Frequency, and Monetary value, each corresponding to some key customer trait. These RFM metrics are important indicators of a customer's behavior because frequency and monetary value affects a customer's lifetime value, and recency affects retention, a measure of engagement.03-Jun-2021

4 0

2 years ago

When an individual creates a false corporation to shield or hide wrongdoing by the individual, this is called a corporate veil.

kondor19780726 [428]

False. This is called an "anonymous company"

8 0

3 years ago

On January 1, 2019, East Lansing, Inc., issues $2,000,000 of 10 percent, 5-year bonds that pay interest of $100,000 semiannually

xenn [34]

Answer:

The issue price of the bond is the present value of the future cash flows of the bond,which is $2,162,217.92.

The calculation of the issue price is shown below.

Explanation

The bond will pay interest of $100000 for 10 periods plus $2000000 par at the end of the tenth period.

The formula applicable is: Future value of each period multiplied by applicable discounting factor.

Even though the bond is issued for only 5 years,but the fact that it pays interest semi-annually makes it 10 period duration(5years*2).

Interest rate should also be adjusted to show the time horizon of six month each by dividing 8% per year by 2.

The detailed computation of present value is as follows:

Periods Coupon Interest @10%/2 DCF=1/(1+r)^n PV

1.00 100,000.00 0.9615 96,153.85

2.00 100,000.00 0.9246 92,455.62

3.00 100,000.00 0.8890 88,899.64

4.00 100,000.00 0.8548 85,480.42

5.00 100,000.00 0.8219 82,192.71

6.00 100,000.00 0.7903 79,031.45

7.00 100,000.00 0.7599 75,991.78

8.00 100,000.00 0.7307 73,069.02

9.00 100,000.00 0.7026 70,258.67

10.00 2,100,000.00 0.6756 <u>1,418,684.75</u>

<u> 2,162,217.92</u>

7 0

2 years ago

Bronson has shopped at several toy stores. However, he really likes The Toy Corner because of the broad assortment offered for d

Bezzdna [24]

Answer:

C is the answer. The service provided at Toy Corner exceeds customer expectations.

Explanation:

When a store offers a broad assortment of goods tailored for different age groups, it will really attract more patronage.

But, when it ensures the home-delivery of goods that are not available at its store to customers who have placed orders, then it can be said to be exceeding the expectations of its customers.

This is moreso, when such home-delivered goods are sold to customers at discounted prices. This shows that the store not only cares for its customers, it surely does not want the customers to leave its store to buy goods from others. This ensures customer loyalty and continued patronage.

The approach is very competitive and customer-friendly.

8 0

3 years ago