Answer:
7.8% increase in revenue
Explanation:
Revenue is given by the number of units sold 'n' multiplied by the price of sale 'P'. The revenues before and after the price drop are:
The change in revenue is given by:
Therefore, there was a 7.8% increase in revenue when price falls by 2%.
Answer and explanation:
Yes, the fact that a consumer is willing to replace four pounds of generic store-brand sugar for two pounds of a brand-name sugar reflects a diminishing marginal rate of substitution. This type of marginal rate of substitution (<em>MRS</em>) explains how a consumer is willing to acquire less quantity of one good to get one more additional unit of another good that is equally satisfying. In a graph, the diminishing MRS is calculated using an <em>indifference curve</em>.
Answer:
The answer is: natural barrier
Explanation:
The Caucasus Mountains are a natural barrier since it interferes with travel and trade between country of Georgia and its northern neighbors. Other types of natural trade barriers are different languages and long distances.
The other two types of trade barriers are tariff barriers (taxes, etc.) and non-tariff barriers (e.g. import quotas, embargoes, etc.).