A 5 percent increase in the price of milk that results in a 2 percent decrease in the quantity of milk demanded yields a price elasticity of demand for milk of <u>"0.4".</u>
Price Elasticity of Demand (PED) is characterized as the responsiveness of amount requested to an adjustment in cost. The interest for an item can be versatile or inelastic, contingent upon the rate of progress in the interest regarding the adjustment in the cost.
Price Elasticity of Demand (PED) = percentage in Q.D / percentage change in price
by putting the given values in formula;
PED = 2/5 = 0.4
Answer:
b
Explanation:
to start a business you have to see what's on demand
Answer: Consumer share risk with company.
Explanation:
Insurance involves the sharing of risk between a client and his insurer. In insurance the insurer takes a large portion of the risk while the client covers the rest of risk payment.
The viability of Cattle Supply’s exporting strategy could be constrained by transportation costs, particularly of products that can be produced in almost any location and have a <u>low value-to-weight ratio</u>.
<h3>What is the meaning of a low value-to-weight ratio?</h3>
A low value-to-weight ratio is the comparison of the monetary value of an item versus its weight.
For example, before Cattle Supply Inc. can successfully adopt an exporting strategy, it must consider that its dairy farming equipment has low monetary value when compared with the weight, especially in transportation costs.
Though exporting should offer Cattle Supply Inc. the prospect of new markets, improved sales and profits, and a greater customer spread, it should not export when its product has a low-value-to-weight ratio.
Thus, the viability of Cattle Supply’s exporting strategy could be constrained by transportation costs, particularly of products that can be produced in almost any location and have a <u>low value-to-weight ratio</u>.
Learn more about exporting strategies at brainly.com/question/26783042