Answer:
2.33 ; demand for movies is elastic
Explanation:
The computation of the price elasticity of demand is presented below:
= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in price ÷ average of price)
where,
Change in quantity demanded is
= Q2 - Q1
= 30 - 15
= 15
And, an average of quantity demanded is
= (30 + 15) ÷ 2
= 22.50
Change in price would be
= P2 - P1
= $8 - $6
= $2
And, the average of price is
= ($8 + $6) ÷ 2
= 7
So, after solving this, the price elasticity of demand is 2.33
Since it is not given by which method we have to calculate it. So, we use the mid point formula.
Based on the above calculation, we concluded that the demand for movies is elastic
Answer:
Which of the following is NOT a correct explanation for multi-market competition?
Coca Cola and PepsiCo compete across a number of products (e.g., soft drinks, bottled water) and geographic markets (U.S. and foreign markets) indicating that both companies have market commonality.
Explanation:
Answer:
penetration pricing and skimming pricing
Answer:
D. Market Penetration
Explanation:
Market penetration is one of the Growth strategies as defined by Ansoff. With the use of an actor and an ex NFL player for their advertisement, Herbal Organics was able to penetrate the market more, thereby increasing their sales as compared to the previous year. Market penetration involves funding ways to lure away customers from competitors towards you. Its aimed at increasing the available market share through increased efforts in getting customers or target markets.