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Angelina_Jolie [31]
3 years ago
12

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 <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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Fittoniya [83]

Answer:

d. $29,580.

Explanation:

Note: The data in the question are merged together and they are first sorted and separated as given in the attached file before the question is answered.

Cost individually incurred by Maintenance = $25,500

Share of Payroll Department cost = $20,400 * (15/75) = $4,080

Total Maintenance Cost = $25,500 + $4,080 = $29,580.

Therefore, he total cost of operating the Maintenance Department for the current period is d. $29,580.

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3 years ago
What is the difference between sole proprietor and self employed
Kitty [74]

Answer:

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Explanation:

Self Employment is the term used to depict <u>economic activity</u> of working for self owned organisation, rather than working for someone else. The self owned organisation could be entirely (solely) self owned - sole proprietorship, or co-owned by partners in a limited liability partnership

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5 0
3 years ago
Suppose that the price of chicken rises sharply compared to the price of turkey. In response, consumers buy more turkey and less
astra-53 [7]

Answer:

A.overstate; substitution

Explanation:

Consumer Price Index (CPI): is a measure that examines the weighted average of prices of consumer goods and services, such as transportation, food, and medical care. It is calculated by taking the average of the price changes for each item in the predetermined  goods. Changes in the CPI are used to assess price changes associated with the cost of living therefore the CPI is used economist for identifying periods of inflation or deflation.

when we say the CPI overstate inflation; it is because of:

Substitution bias (when the price of a product in the consumer basket increases substantially, consumers tend to substitute lower-priced alternatives; Therefore, it tends to overstate inflation due to a lack of accountability ) and;

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3 years ago
One year ago, ABC Widgets, Inc., funded an expansion to its manufacturing facilities by issuing a 20-year first mortgage bond. T
MA_775_DIABLO [31]

Answer:

Current yield = 0.05238 or 5.238% rounded off to 5.24%

option B is the correct answer

Explanation:

The current yield is the return on investment in form of interest or dividend expressed as a percentage of the current market value of the instrument. Thus the formula for current yield on a bond will be,

Current yield = Interest per year / Current market price

Assuming that the value of bond is 100. The interest or coupon payment on bond will be = 100 * 5.5% = $5.5 per annum

Current yield = 5.5 / 105 = 0.05238 or 5.238% rounded off to 5.24%

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