Yes a reduction in market price will lead to an increase in quantity demanded.
Explanation:
It is true that when price decreases demand increases as these two factors affects each other inversely. There is a negative relationship between price and demand and it is known as Law of demand.
If the price increases , the quantity demanded falls down (but demand itself stays the same). If the price falls down, quantity demanded goes up. People who were demanding less due to the high price will demand more if price falls as this will not affect the their pocket more as earlier.
Answer: Build long-term relationships with the customers
Explanation:
According to the given scenario, the high pressure selling process is one of the ineffective approach as the dealership wants to build a long term relationship with the consumers or user.
The long term relationship with the customers is basically creating the growth, loyalty and also the revenue of an organization as it helps in increase the productivity of the management by maintaining the good relationship with the customers.
The following ways helps in building the long term relationship with the customers are as follows:
- By good communication skills
- Enhance the consumer loyalty
- Make connection with the customer
- Always take feedback
- Explain about your product's benefits
Answer:
a. 12.60%
Explanation:
The information given above that can be useful is the Risk Free rate and risk premium to calculation of cost of retained earnings.
We know that the calculation of cost of retained earnings =Cost of retained earnings = Risk Free rate + risk premium
= 8.75% + 3.85%
= 12.6%
Therefore the correct answer is a. 12.60%
