Answer:
The answer is below
Explanation:
i) The price elasticity of demand is given by the formula:
Since the price elasticity of demand is greater than 1 hence it is elastic
ii) Since the price elasticity of demand is elastic as a result of increase in fare, hence the total revenue would decrease.
iii)
Since the price elasticity of demand is greater than 1 hence it is elastic
Answer:
There are several ways in which a young entrepreneur can carry out purchasing activities responsibly, including:
1. Measured production of inventory or units of products- If an entrepreneur is producing bicycles for instance, (s)he should only spend on inventory that (s)he anticipates will be sold to customers or purchased by retailers. For example, let's assume that the entrepreneur has a purchase order from a retailer such as K-Mart for 500 bicycles. In this case the entrepreneur should only produce around 550 bicycles rather than 700 or 1000 bikes, thus, purchasing supplies and producing inventory in accordance with demand for his/ her bicycles.
2. Lowering costs of production where possible- Firstly, this can be done by purchasing supplies and materials for inventory in bulk. Secondly, the entrepreneur could outsource the manufacturing of his/her product to countries (such as China) where production costs are significantly cheaper.
Answer:
D. focused differentiation strategy
Explanation:
Focused differentiation strategy is a type of strategy employed by a company or business, whereby a particular small group of customers are targeted and provided with differentiated products that cannot be easily gotten elsewhere. This type of strategy is usually effective in a market where competition is limited, such as can be seen in the market of organic products and foods.
The scenario as described in the question above, suggest that <u><em>Organic Eats is following a focused differentiation strategy</em></u>, as they target only a small percentage of consumers that are highly health-conscious, and also provide a differentiated product consisting of an all-organic, vegan menu. There is also limited competition from other competitors as there are few restaurants that offer the same unique services that Organic Eats offer.
Answer:
The answer is: A) Quantity demanded will decrease; total revenue will rise.
Explanation:
Gasoline has an inelastic demand (price elasticity of demand ≤ 1). It means that if the price of gasoline increases 10%, consumers will only decrease the amount of gasoline they buy by 4%. So even if the quantity demanded of gasoline decreases a little, the total revenue will increase.
