There are different types of pricing strategies: penetration pricing (entering the market with a low price), economy pricing (low marketing and low prices), premium pricing (when the price is higher than the competitors), psychological pricing (example $99, instead of $100), demand-based pricing (based on the demand of the customers).
<span>Delta airlines prices its tickets so that it is less expensive to travel between midnight and 5:00
a.m. than during the day, when there is heavy business travel. this illustrates demand-based pricing.</span>
Invisible hand.
The invisible hand is Adam Smith's theory that markets left on their own will automatically adjust to the production and consumption that most benefits all involved.
Answer and Explanation:
Given that
The Sale is made for $900
Terms 2/10, n/30 that means if the payment is made within 10 days than 2% discount is eligible and the total credit period allowed is 30 days
Now the journal entry to record the receipts of a payment within discount period is
Cash Dr $882
Sales discount $18
To Account receivable $900
(Being the cash received)
Answer:
D. Aggregate demand curve would shift to the right
Answer:
d. $390 million merits and $110 million merits
Explanation:
The computation of the consumption and the government expenditure is shown below:
As we know that
Budget Surplus = Taxes - government expenditure
$40 = $150 - government expenditure
So, the government expenditure is $110 million
In addition,
Gross domestic product = Consumption + investment + government expenditure + net exports
$600 = Consumption + $100 + $110 + $0
So, the consumption is
= $600 - $100 - $110
= $390 million
We simply applied the above formulas in order to find out the consumption and government expenditure
