The correct answer is: "I would recommend her not to increase the price, because with an elastic demand function this will cause a great decrease in the quantity demanded by consumers".
The demand function represents the quantity of a certain good or service that consumers are willing to purchase in the market at different price levels. The law of demand states that there is an inverse relationship between price and quantity demanded (ceteris paribus, hence, given that the rest remains equal). <u>Therefore, when the price charged decreases, the amount that consumers are willing to purchase increases. </u>
In turn, the elasticity of the demand function measures the sensitiveness of the quantity demanded by consumers when there is a certain price change. If the demand function is elastic it means that a price variation would generate an even larger variation (in the inverse direction of course!) in the quantity demanded. <u>This is the case of the lemonade stand therefore the girl should not increase prices because this will not help her to reach her objective quicke</u>r, as she would loss a greater proportion of units sold than the size of the price increase that would have allowed her to earn more per unit.
Answer:
unsolicited trade
Explanation:
In this scenario, the trade that was made would be considered an unsolicited trade. This is mainly due to the customer having called the representative telling him to place the trade and buy the 100 shares of ABC stock. Therefore, this trade was ultimately the idea of the investor (customer) in this scenario and not the representative's idea. That would make this trade fall into the category of an unsolicited trade. If the idea was initially the representative's and he was the one to mention the trade to the client then it would have been a solicited trade, but this is not the case.
<u>Answer:</u>
less
<u>Explanation:</u>
The law of diminishing marginal utility states that, as consumption of a good or service increases, its marginal utility decreases.
Answer:
C) Jamie is only entitled to the leave to take care of his daughter.
Explanation:
The Family and Medical Leave of 1993 applies to all public entities, schools, and businesses with 50 or more employees. In this case, Coffee-Ha-Ha is included since it has 61 employees (including Jamie).
This law provides employees with up to 12 weeks of unpaid leave for:
- Birth and care of the newborn child
.
- Placing a child for adoption or foster care.
- Take care of family member (spouse, <u>child</u>, or parent) with a serious health condition
- Take medical leave when unable to work due to a serious health condition.
Jamie cannot take a leave for taking care of his mother in law, but he can take an unpaid leave for taking care of his daughter.
