Answer:
Option (B) is correct.
Explanation:
Given that smartphones are a normal good and income of the individuals increases because of economic boom. We know that there is a direct relationship between the income of an individual and demand for normal goods.
Increase in the income level of the individuals will result in higher demand for smartphones. This will shift the demand curve of smartphones rightwards.
Simultaneously, the wages of sales representatives who work for cell phone companies also increases. This will increase the cost of production for the firms and shifts the supply curve of smartphones leftwards.
Hence, the equilibrium price of smartphones increases but the effect on equilibrium quantity is indeterminate because its effect will be depend upon the magnitude of the shift of supply and demand curve.
The CSS Profile, short for the College Scholarship Service Profile, is an online application created and maintained by the United States-based College Board that allows college students to apply for non-federal financial aid.
Answer:
-2
Explanation:
To find the cross price elasticity between to goods, we use this formula:
Cross Price Elasticity of Demand = % change in quantity demanded of good 1 / % change in the price of good 2
Now, we plug the amounts into the formula
Cross Price Elasticity of Demand = -50% / 25%
= -2
Answer: E. The firm's ability to differentiate its product
Explanation:
The factor under the control of owners and managers that make a firm successful and allow it to earn economic profits is the firm's ability to differentiate its product.
Product Differentiation has to do with making a product unique from that of its rivals so that it'll be attractive to the customers and the target market. This will slow be vital for the company to produce at a average cost that is lower than that of its competing firms. This will help the company to have a competitive edge over others.
