All categories

3 years ago

Which of the following would most likely make the demand for an item more elastic?

Business

2 answers:

rodikova [14]3 years ago

6 0

Answer:

C. There are no costs of switching to competitor's products.

Explanation:

Demand is buyers ability & willingness to buy at a price, time. Elasticity of Demand is buyers' demand responsiveness to price change.

Elastic demand means demand changes more with regards to price change. Inelastic demand means demand changes less with regards to price change.

In case of : buyers perceiving less substitute competing goods, item representing a small fraction of consumer's budget, buyers having less time to adjust to price change - Demand responds less to price change i.e is Inelastic.

If there are no costs to switching to substitute competitors' goods, shifting to other substitute goods is more convenient. This easier goods substitution makes good's demand more responsive to price change i.e Demand is Elastic.

dexar [7]3 years ago

6 0

Answer:

The correct answer is letter "C": There are no costs of switching to competitor's products.

Explanation:

Demand Elasticity is the measure of how demand changes as other factors change and is often referred to as price elasticity of demand because the price is most often the factor used to measure elasticity. Demand elasticity helps a company predict changes in demand based on changes in price, market entry of competitive goods, and other factors.

Thus, if there are no costs for consumers to switch from one product to another due to competition, the demand elasticity for that product is high.

You might be interested in

Jenny, who is married and the mother of three, is 25 years old and expects to work until 70. She earns $45,000 per year. Jenny e

jeka57 [31]

Answer:

$855,903.20

Explanation:

Real discounting rate=> i= [i'-f]/[1+f]. Where i is the real interest rate. i' is the nominal interest rate which is given as 5% and f is the rate of inflation

i = (5%-3%)/1+3%)

i = 2/1.3

i = 1.94%

Her after tax earnings = 45,000*(1-0.15) = $38,250

Personal consumption = 25% of this, 38,250*0.75 = $28,688.

We are discounting her earnings back 45 years at 1.94%. The equation will be: 28,688 * {1-(1+0.01940)^-45} / {0.01940}

= 28,688 * {1 - 0.42120322099] / 0.01940

= 28,688 * 29.83488551597938

= 855903.1956824165

= $855,903.20

So, the amount of life insurance necessary for Jenny using the Human Life Value method is $855,903.20

3 0

2 years ago

romanna [79]

Answer:

This may help you to solve it

3 0

2 years ago

Which of the following statements is true of an activity-based costing system?

eimsori [14]

Answer:

The correct answer is A. It uses separate predetermined overhead allocation rates for each activity.

Explanation:

he ABC cost model allocates and distributes indirect costs according to the activities carried out in the process of manufacturing the product or service, identifying the origin of the cost with the necessary activity, not only for production but also for distribution and sale; The activity is understood as the set of actions that aims to incorporate added value to the product through the manufacturing process. Complementing the definition of activity, it should be mentioned that the ABC Model is based on the fact that products and services consume activities, and these in turn are the ones that generate costs.

7 0

3 years ago

Creating a chant that rhymes to remember information is a memorization technique.

jolli1 [7]

Answer:

Explanation:

BECAUSE I AM SMART AND BECAUSE I TOOK THAT SAME CLASS

6 0

2 years ago

What is globalization in business.

aivan3 [116]

Answer:

the increase in the flow of goods, services, capital, people, and ideas across international boundaries.

6 0

2 years ago