Answer:
if the price increases by 1 percent, the quantity demanded will decrease by 2 percent.
Explanation:
As we know that
Price elasticity of demand = (Percentage change in quantity demanded) ÷ (percentage change in price)
Since the price elasticity of demand is -2 that means the price is increased and the quantity demanded is decreased
The price would be increased by 1% and the quantity demanded would be decreased by 2% because of this, the price elasticity would be negative
Answer:
The answer is: customer excellence
Explanation:
The night clerk is not in charge of looking for dry cleaners, he is not Maria's personal assistant nor does he own or operate a dry cleaning service. So the fact that he did more than his job requires him to do, exemplifies how Ritz-Carlton's employees are committed to providing excellent customer service.
Answer:
Credit to Prepaid insurance for $400 and Debit to Insurance expense for $400
Explanation:
The journal entry is given below:
Insurance expense ($4800 × 1 ÷ 12) $400
Prepaid Insurance $400
(To record insurance expense)
Here the insurance expense is debited as it increased the expense and credited the prepaid insurance as it decreased the assets
Answer:
The concept of utility
Explanation:
According to the concept of diminishing marginal utility, consumers will purchase more of a good when the price falls only in the situation when perceived benefits from the consumption of the good exceed the price. When consumers realize that the perceived benefits are no more worth spending, the quantity demanded of the particular good will decrease.
Answer:
underprovide; overprovide
Explanation:
A good has positive externality if the benefits to third parties not involved in production is greater than the cost. an example of an activity that generates positive externality is research and development. Due to the high cost of R & D, they are usually under-produced. Government can encourage the production of activities that generate positive externality by granting subsidies.
A good has negative externality if the costs to third parties not involved in production is greater than the benefits. an example of an activity that generates negative externality is pollution. Pollution can be generated at little or no cost, so they are usually overproduced. Government can discourage the production of activities that generate negative externality by taxation
