Answer:
(i) Q=300
(ii) Elasticity of Demand=-3.33 (elastic)
(iii) Income Elasticity= 2.5 (normal good)
(iv) Advertising Elasticity: 1.5
Explanation:
The Demand function is given by
(1) To solve (i) we need to replace P = 200, I = 150, and A = 30 in the demand equation:
(2) To find the price elasticity (how much quantity demanded changes with price) we use the point price elasticity formula
From the above equation we get: 
Replacing in the elasticity formula
in absolute terms the elasticity is bigger than one so it is an elastic demand.
(3) For income elasticity (how much quantity demanded changes with income), we proceed similarly as above. But the derivative is respect to income
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Which is bigger than one, denoting this is a normal good because it's bigger than one.
(4) Advertising elasticity (how much quantity demanded changes with expenditures in advertising), we proceed as before
Answer:
$15,000 gain
Explanation:
Assets with a value of $225,000
Remaining asset (cash) to Ula ($25,000)
Purple liabilities ($60,000)
Balance $140,000
Balance Brought forward $140,000
Remaining asset (cash) to Ula $25,000
Ula purchased stock ($150,000)
Balance $15,000 gain
Or
$225,000-$25,000-$60,000=$140,000+$25,000-$150,000=$15,000 gain
Therefore we have $15,000 gain.
Answer
Polygraphics
Explanation
Consumer profile is a way in which consumer are categorized according to groups regarding the market and the advertising purposes. By this you create a good picture of your customers which helps you to make good decisions according to the services you are offering. Customer profiling normally includes:
Demographic profiling which is the data concerning the population, age gender and the income of people within a certain population.,
Psycho-graphics profiling this is where the behavior and beliefs of a certain population is captured.
Buying patterns this is normally the consumers behavior in the market its is about the quantity, duration e.t.c.
Answer: Option B is correct.
Explanation:
The option A is incorrect because Silver screen cinemas are competing on prices which shows that it will charge lower prices than the supplier who is offering differentiated products and is in similar line of business.
Option B is correct because though both of these companies are in similar type of industry but their customer segments are different from each other. Digi Now Inc. is offering services to upper class whereas the Silver Screen Cinemas Inc. is offering to people who have lower purchasing power.
Option C is incorrect because Digi Now Inc. is offering services to upper class, which means it will charge higher prices for superior customer services. Silver Screen Cinemas Inc. will charge lower prices for lower level of customer services.
Option D is incorrect because one is competing on quality whereas the other is competing on cost. So it is impossible for the one who is competing on cost to offer everything to everyone.
The answer to this question is: Voluntary exchange
In economy, voluntary exchange refers to the trade of resources between two parties that based on their own will.
This type of exchange usually could only happen because both parties feel that they will be advantaged from the exchange
