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Jobisdone [24]
3 years ago
15

When a homeowner visited the home depot to buy what he thought he needed to fix a leaking toilet, he gathered up materials total

ing almost $70. one his way to check out, an employee asked him what was he trying to fix. after some discussion, the employee convinced the homeowner that a $5.99 replacement part would fix the problem better than the materials he thought he needed and with less trouble. this sort of discussion between employees and customers is commonplace at the home depot and indicates the retail store has a(n) _____ orientation. (2pts) sales market product exchange production?
Business
1 answer:
Gemiola [76]3 years ago
6 0
The answer to this question is "Market Orientation" such as when the homeowner <span>visited the home depot to buy what he thought he needed to fix a leaking toilet, he gathered up materials totaling almost $70. When on his way to check out, an employee asked him what was he trying to fix. After some discussion, the employee convinced the homeowner that a $5.99 replacement part would fix the problem better than the materials he thought he needed and with less trouble. This kind of discussion between employees and customers is commonplace at the home depot and indicates the retail store has a MARKET orientation.</span>
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The demand for good X is estimated to be Qxd = 10,000 − 4PX + 5PY + 2M +
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Olenka [21]

Answer:

Explanation:

  • Given the equation ; Qxd = 10,000 − 4PX + 5PY + 2M + AX
  • where PX is the price of X = $50
  • PY is the price of good Y = $100
  • M is income = $25,000
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a) Calculate the quantity demanded of good X ; Plugging all the values into the equation ;

= 10,000 − 4(50) + 5(100) + 2(25,000) + 1000

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b) Calculate the own price elasticity of demand for good ;

= d(Qxd)/dpx X px/Qxd = -4 x 50/61,300

= 0.0033. hence he demand for goods is inelastic

c) l will surely recommend lowering the price as this is evident from the value of the price elasticity of demand which is negative as such an increase in the price of their goods will give rise to total loss

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e) Calculate the income elasticity of good X. Is good X normal or an inferior good? = dQ/dM X M/Q = 2(25000) /61300

= 0.82.

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