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Angelina_Jolie [31]
4 years ago
12

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

Business
2 answers:
rodikova [14]4 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]4 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 <em>price elasticity of demand</em> 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 <em>price, market entry of competitive goods</em>, and <em>other factors</em>.

Thus,<em> 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</em>.

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NEED HELP ASAP THANK YOU
solniwko [45]

Answer:

a

Explanation:

5 0
3 years ago
GDP is the: a. market value of an economy's production of final goods and services in a one year period. b. sum of coins, bills,
Bond [772]

Answer:

a. market value of an economy's production of final goods and services in a one year period.

Explanation:

GDP is the sum of all final goods and services produced in an economy within a given period which is usually a year.

GDP = Consumption spending + Investment spending + Government Spending + Net Export

GDP doesn't include intermediate goods. Therefore it is not the market value of an economy's production of all goods and services in a one year period.

Total expenditures of the federal government over the period of one year is known as government spending.

I hope my answer helps you

8 0
4 years ago
Ocean City Kite Company sells kites for $11.50 per kite. In FY 2019, total fixed costs are expected to be $250,000 and variable
Dmitry_Shevchenko [17]

Answer:

40,000 kits

Explanation:

The computation is shown below:

Number of kits required to be sold to meet the goal = Total Contribution Margin Required ÷ Contribution Margin per Unit

where,

Total contribution margin required is

= Total fixed cost + operating income

= $250,000 + $90,000

= $340,000

And, the

Contribution Margin per Unit = Selling Price per Unit - Variable Cost per unit

= $11.50 - $3

= $8.50

So, the number of kits required is

= $340,000 ÷ $8.50

= 40,000 kits

8 0
3 years ago
Explain the significance of capital structure.
mojhsa [17]
Capital structure increases the ability of the company to find new wealth- creating investment opportunities.
4 0
3 years ago
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Which one of the following is a non-profit financial intermediary?
MrMuchimi
A credit union is a non-profit financial intermediary. 
6 0
3 years ago
Read 2 more answers
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