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algol13
3 years ago
14

When consumers are brand loyal, the term inelasticity of demand is often used. This means that

Business
1 answer:
wolverine [178]3 years ago
4 0

Answer:

The correct answer is b. "Consumers are less sensitive to price increases for a brand they like."

Explanation:

The term "elasticity of the demand" is used to explain the way the quantity demanded of a good or service responses to a variation of its price.

A normal demand will show you that when a good's price increases, it's quantity it's decreased in equally proportion.

A very elastic demand, will show you that when a good's price increases, it's quantity demanded it's decreased way more than the relative amount the price has increased. An example of goods with elastic demand is olive oil, people will stop buying them and will find a replace (like sunflower oil) if its price increase too much.

Opposite to that, a very inelastic demand will show you that when a good or service's price increases, the quantity demanded of that item won't be as reduced as the price was increased. An example of that is a Ferrari Car, it's exclusivity and loyalty from its costumers will allow Ferrari to raise the price of it's cars and the demand won't go down.

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Dr. Bernanke argued two problems contributing to the financial crisis included:________.
nydimaria [60]

Answer:

D. banks reliance on long term funding; and increased use of non-standard mortgages such as fixed rate, 30- year mortgages.

Explanation:

Dr. Bernanke argued that financial crisis is due to the banks involving in non standard mortgages which are fixed rate mortgages but they are not regulated. The bank provides loans and mortgages to people based on the standard regulations which need to be followed. They financial crisis took place when the mortgages were provided on non standard terms.

4 0
3 years ago
Describe either a desire-based or fear-based advertisement that you have seen. Explain what desire or fear you think the ad is u
joja [24]

Desire-based advertising is used to drive people to purchase items based on a desire for it.  An example for desire-based advertising is to draw people in to a store based on a sale of an item that they desire. A fear-based advertisment can be for insurance. They advertise against the "what ifs" and "what could happen" if you do not hold car insurance and end up needing it.

3 0
3 years ago
What are five foundations of economics? increasing trade between two countries makes everyone in those countries better off.
geniusboy [140]

The five foundations of trade are:

  • incentives
  • tradeoffs
  • opportunity cost
  • marginal thinking,
  • principle that trade creates value.

<h3>Why do we engage in trade?</h3>

There are five main foundations of trade that are the reason why people engage in trade. One of them is the profit incentive to make money from trade. Another is the tradeoffs that people are forced to make to survive.

Opportunity cost also leads to trade because people give up one thing for another and so may have to sell the thing they gave up to receive the thing they want. There is also the principle which posits that when we trade, value is created. Finally, there is marginal thinking which is thinking along the lines of the benefit of one additional unit.

Find out more on the foundations of trade at brainly.com/question/2710473

#SPJ1

5 0
1 year ago
What job did drivers perform on large southern plantations?
Elan Coil [88]
The occupation did drivers perform on vast southern ranches since they managed the work of slaves. On the off chance that slaves did not take after requests, they likewise rebuffed the slaves.

I hope the answer will help you. 
4 0
3 years ago
Alpaca Yarn employs factory workers to hand spin wool yarn and fabric in a workshop on the company farm. Which economic question
zimovet [89]
The answer to the statement above is what to produce? and how to produce?. basically having the statement that Alpaca Yarn employs factory workers to hand spin wool yarn and fabric in a workshop on the company farm lacks the question as to what product would the make with the yarn and fabric and the volume that they'll be making.
8 0
2 years ago
Read 2 more answers
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