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Deffense [45]
3 years ago
6

Recently, Verizon Wireless ran a pricing trial in order to estimate the elasticity of demand for its services. The manager selec

ted three states that were representative of its entire service area and increased prices by 5 percent to customers in those areas. One week later, the number of customers enrolled in Verizon’s cellular plans declined 4 percent in those states, while enrollments in states where prices were not increased remained flat. The manager used this information to estimate the own-price elasticity of demand and, based on her findings, immediately increased prices in all market areas by 5 percent in an attempt to boost the company’s 2016 annual revenues. One year later, the manager was perplexed because Verizon's 2016 annual revenues were 10 percent lower than those in 2015—the price increase apparently led to a reduction in the company’s revenues. Did the manager make an error
Business
1 answer:
Anettt [7]3 years ago
8 0

Answer:Yes, the Manager made an error.

Explanation:

Increasing the revenue of a firm depends on two factors which are price and effective demand. An increase in price without a fall in demand will increase revenue, an increase in demand without a fall in price will equally increase revenue.

However when manipulating price only in order to increase revenue care must be taken to ensure same or higher level of demand for an increase in price which lead to a fall in demand may boomerang for the firm.

E.g

Year. $ Price. Demand. Revenue$

1. 5. 100. 500

2. 6. 80. 480

The above illustrate an increase in price without a rise or maintaining the same level of demand leads fall in revenue.

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A central bank would like to increase the money supply in the country. It
Lelechka [254]

Answer:

answer is A open market operations

Explanation:

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3 0
3 years ago
If a firm sells a prestige product, what kind of relationship between price and quantity demanded should it expect?.
solmaris [256]

For a firm that sells a prestige product, the relationship between price and quantity demanded is a <u>positive direct relationship</u>.

<h3>Why is the relationship between demand and price of prestige products direct?</h3>

The relationship between the demand and price of prestige products is direct because prestige products tend to sell better at high prices than at low prices.

And when the quantity demanded increases, the price tends to increase.

An example of a prestige product is an old car.

Thus, for a firm that sells a prestige product, the relationship between price and quantity demanded is a <u>positive direct relationship</u>.

Learn more about the demand for prestige products at brainly.com/question/6374886

3 0
2 years ago
Business head Brent wants to categorize items under the Challenge, Risk, and Reward headings for his IS implementation presentat
Savatey [412]

Answer:

Challenge

  • Quality Issues
  • Lack of Documentation

Risk

  • Loss of Confidentiality
  • System Unavailability

Reward

  • Increased Quality
  • Reduced Cycle

Explanation:

A challenge is something that test you and your business. The are temporary obstacles that you have to surpass in order to be successful.

Business Risk means the possibility of loss or any adverse condition that may severely damage the organization's ability to achieve its goals and objectives.  

Reward means a positive outcome that has happened because of productive decision making and effective management.  

7 0
3 years ago
Agnes and Buford went camping to celebrate their 50th wedding anniversary. While eating under the moonlit sky, Agnes and Buford
Alex17521 [72]

Answer:

The letter D. Assumption of the risk.

Explanation:

I believe the Best-of-the-Rest company is reliable for the quality of the products it produces and resells. Trading food is very dangerous because it needs a very close surveillance by the owner and supervision. A part of a mouse ear at the bottom of the can may have been overlooked in the packaging. Alternatively, it may have been posed by someone with bad intentions to undermine the company's credibility. Everything is possible.

5 0
3 years ago
____ includes) the application of knowledge, skills, and tools to achieve a specific business objective
nlexa [21]

<u>Project management</u> includes the application of knowledge, skills, and tools to achieve a specific business objective.

Project management refers to the use of specific knowledge, tools, skills, and techniques in order to deliver something of value to people. For instance, developing software for an improved business process, relief effort after a natural disaster, construction of a building, the expansion of sales.

Project management goals are set to achieve a specific business objective through a successful development of the project's procedures of planning, initiation, execution, regulation and closure as well as the guidance of the project team's operations.

Hence, project management achieves a specific business objective.

To learn more about project management here:

brainly.com/question/4475646

#SPJ4

4 0
1 year ago
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