Answer:
a. mostly cigarette buyers.
Explanation:
The law of demand states an inverse relationship between quantity demanded of a good and it's price, keeping other factors affecting demand as constant.
Price elasticity of demand refers to the degree of responsiveness of quantity demanded to a change in price.
Alcohol and cigarettes are exceptions to the law of demand since in their case, the factor of addiction presides which outweighs rational decision making.
Thus, price elasticity of demand of cigarettes is inelastic. So a marginally higher price charged for cigarettes will not reduce their consumption.
A new tax on cigarettes would raise their prices. The manufacturers, to cover such taxes and maintain the same margin as before would further raise the prices of cigarettes further.
Thus, the tax burden would be shifted to the consumers and hence majorly borne by them.
The small businesses in the United States operate at a very high level, and form a big chunk of the total national employment.
<h3>What is a small business?</h3>
A business which runs and operates on a very small scale, defined as per the government authorities from time to time, is known as a small business.
The advantages of a small business are,
- Government subsidies and benefits
- Quick decision-making
- Easier formation
The disadvantages of a small business are,
- Government regulation
- Less scope of expansion
- Competition
Hence, the significance of a small business is aforementioned.
Learn more about small businesses here:
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Answer:
Which business would you rather work for and why?
Soleproprietorship
Explanation:
Soleproprietorship entails when one solely owns a business makes decision for the company.
Answer:
C
Explanation:
First mover advantage tend to enjoy competitive advantage. These are firms that always at the forefront of advances in their industries. First mover advantage may be gained by early purchase of resources or by technological leadership.
First movers can be rewarded with huge profits margins if its capitalize on its advantage.
Answer:
The correct answer is option A.
Explanation:
According to the classical theory, the quantity of money is directly related to price level. So, any shortage or surplus in the money market can be corrected by increasing or decreasing price level.
According to the liquidity preference theory, however, money is demanded for transactionary, precautionary and speculative motive. So, only price level does not affects the quantity of money. Interest rates also effect the demand for money.
So, option A is the correct answer.