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

Bugle Corp. approved a plan of merger with Stanley Corp. One of the determining factors in approving the merger was the strong f

lesya [120]

Answer:

A). Failed to exercise due care.

Explanation:

As per the given details, Bugle Corp. needs to prove that Dennis & Co. failed to exert the required care which it was supposed to exercise while auditing the financial statements of Stanley Corp. This failure led Bugle Corp. to suffer major losses and thus, they must be accountable for this loss under the general law as they ignored the potential hazards. Legally, this is unlawful as they were expected to ensure that these hazards must have addressed and told Bugle Corp. on time but since they failed, they are guilty of the crime. Hence, option A is the correct answer.

4 0

3 years ago

In the context of foreign market entry, ________ requires no equity investment and thus has a low risk, low rate of return, and

Oksanka [162]

it is B because franchising is the best option

7 0

3 years ago

Read 2 more answers

The channel of distribution consists of ___________, who provide transportation and storage of goods as they are distributed fro

alexandr1967 [171]

The channel of distribution consists of Marketing intermediates , who provide transportation and storage of goods as they are distributed from producers to ultimate consumers.

7 0

3 years ago

A the production possibilities frontier (PPF) is bowed outward as a result of:_________

vodomira [7]

Answer: 2) increasing opportunity costs.

Explanation:

The Production Possibilities frontier is bowed out as it shows that for one more unit of a good to be produced, an additional unit of the other good must be given up.

This represents increasing opportunity costs because opportunity cost is the cost we incur for choosing one alternative over another. By producing more and more of one good, we give up more and more of the other good which means that our opportunity cost rises.

8 0

3 years ago

What is the One Club? They asked me this on my homework assignment.

BaLLatris [955]

Answer:

<h3>The One Club is an American non-profit organization that recognizes and promotes excellence in advertising. Founded in New York City as The One Club for Art & Copy, The One Club produces four annual award competitions: One Show, One Show Design, One Show Interactive and One Show Entertainment.</h3>

7 0

3 years ago