Answer:
A. The definition of a market in determining the price elasticity of demand.
Explanation:
Price elasticity of demand is the height of responsiveness of demand or purchase to changes in price. It shows how consumers or buyers would react to the demand for a product when the price of their favourite brand increases.
Reaction of consumers in the market place is one of the determinants of price elasticity of demand. It tells how buyers will switch to different brand of products if the price of their favourite brand increases. It also shows how consumers will adjust their spending abilities if the price of all the brands are increased at the same time.
Alternatively, consumers would demand for the brand that falls within the limit of their spending.
Answer:
Explanation:
1. Less capital: itinerant retailers have to move from one place to another , so they don't have to invest huge capital. For example: hawkers and paddlers have to buy just a hawker and some amount of goods which they can carry.
2. Services to doorsteps: these retailers provides their goods and services at the doors of the customers. For example: a vegetable seller sells vegetables at the doors of the customers
.
3. Elasticity: the goods they sells are usually perishable in nature and whose substitutes are available in abundance. Therefore, these goods are highly elastic
.
4. Economy: the goods which itinerants sells are economically cheaper, which even a low class of society can buy. For example: non-branded goods.
Answer:
19.50%
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
For Stock R
= 3% + 2.5 × (13% - 3%)
= 3% + 2.5 × 10%
= 3% + 25%
= 28.00%
For Stock S
= 3% + 0.55 × (13% - 3%)
= 3% + 0.55 × 10%
= 3% + 5.5%
= 8.50%
The difference would be
= 28% - 8.5%
= 19.50%
Answer:
$130,000
Explanation:
Sarah is making use of the needs approach to determine how much life insurance to buy
The first step is to calculate the total amount of life insurance
Total amount of life insurance = Total needs - total assets
Total need = income needs + cash needs + special needs
= $140,000 + $30,000 + $100,000
= $270,000
Total assets= retirement plan + bank account + investment account
= $30,000 + $20,000 + $40,000
= $90,000
Total amount of life insurance = $270,000-$90,000
= $180,000
Since Sarah is covered by $50,000 group insurance by her employer then the additional life insurance that should be purchased can be calculated as follows
= $180,000 - $50,000
= $130,000
Answer:
State orientation
Explanation:
The state orientation is the term which is defined as the inability of the person to regulate the behavior, emotions and thoughts. In short, it means that the individuals or the person unable to modify their state of mind, their uncertainty, dejection, anxiety and confusion.
Under this scenario, Jean who whenever accompany their friends on shopping, she could not able to resist herself from buying the products on sales and spend a lot more than budget, so, it could be concluded that she is state orientated.
