Answer:
A low-price strategy
Explanation:
Price elasticity of demand is the responsiveness of quantity demand to a change in price. It is calculated by dividing the % change in quantity demanded by the % change in price.
- Perfectly elastic demand: Even no changes in price causes a change in quantity demanded (horizontal demand curve)
- Elastic demand: Change in price causes a relatively higher change in quantity demanded (Sloped demand curve, PES > 1)
- Unitary elastic demand: Change in price causes the same change in quantity demanded (PES = 1)
- Inelastic demand: Change in price causes a relatively lower change in quantity demanded (Steep slope in demand curve, PES < 1)
- Perfectly inelastic demand: Even with changes in the price, there is no change in the quantity demanded (vertical demand curve).
In this case, demand for hamburgers by both students and faculty is elastic since it is 4 and 3 respectively and hence higher than 1. Thus, any change in price will cause a higher change in quantity demanded.
Note: <em>The negative figures DOES NOT mean less than 1. The negative figure is because price and quantity demanded have an inverse relationship (when one rices, the other falls). Hence, even -4, -3, -6 are all elastic. However, -0.2, -0.9 and such are considered inelastic. </em>
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When demand is elastic, a fall in price will help to maximize total revenue and profits, because when price falls by a certain amount, demand will increase by a much larger amount. Thus, in order to maximize profits, a low-price strategy should be used. In this low price strategy, students should be charged lower than faculty members, since students have a more elastic demand compared to faculty members. For example, students can be charged $5.6 and faculty members $5.8
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Answer: The answer is "Trade by barter"
Explanation:
Trade by barter is one of the ancient transaction means which is still in practice. If the currency exchange of the firms of the two countries does not favour the firms, they may decide to exchange goods for other goods.
The advantage of this trading model is that it has no currency exchange rate limitations. It also makes goods to be readily available.
So, if the currency rate of a US-based company does not favour the company, he may decide to exchange goods for goods in the process known as trade by barter.
Answer:
a. True
Explanation:
A minimum wage above $10 per hour is the binding minimum wage in the labour market so this would prevent the labor market from reaching equilibrium.
I can tell ya one thing, knock "artistic" off the list, those are for thinkers, not doers
Answer:
$100,000
Explanation:
A bank has stock shares of $100,000, property assets of $90,000, and cash of $10,000. If households and businesses decide to deposit $50,000 in the bank as check able deposits, balance sheet will be
Assets - cash = $ 60,000, property assets= $90,000, liabilities and net worth - check able deposits= $50,000 and stock shares= $100,000.