The price elasticity of a good will tend to be larger if the fewer number of substitute goods will be available.
The cross elasticity of demand for substitute goods is always positive because the demand of one good increases at the time when the price for the substitute good increases however the cross elasticity of demand for complementary goods is always negative.
For example, if the price of coffee rises, the quantity demanded for tea which is the best substitute of coffee beverage will increase as consumers will switch to a less expensive but the substitutable alternative.
This is reflected in the cross elasticity of the demand formula, as both the numerator which is the percentage change in the demand of tea and denominator which is the price of coffee shows a positive increase.
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Answer:
<em>From the example given,the 4 answer s to the question consist of both the demand and supply side, demand side, supply side.</em>
<em>It is explained better in the explanation box below.</em>
Explanation:
<em>Solution to the question</em>
<em> </em><em>Categories</em><em> </em><em>Demand side</em><em> </em><em> Supply side </em><em> </em><em>Both</em>
<em>(1)Increasing spending on ‘Shovel ready”’ projects is on </em><em>Demand Side</em>
(2)Lowering income tax rates at all income level is Both
<em>(3)Research grant for a corporation developing new technologies is on </em><em>Supply side</em>
(4)Stimulus packages for firms that are too big to fail is on Demand Side
(5) Government funded scholarship for college students: is on Supply Side
Direct labor cost is wages that are incurred in order to produce specific goods or provide specific services to customers. The total amount of direct labor cost is much more than wages paid.
Given that 3 workers, working 8 hours in a day are paid $12. The total amount paid to workers are:
12x8x3=$288
The cost of direct labor will therefore be:
450-288
=$192
Answer:
the amount of goods that are produced. -the capital required to build the factory. -the unlimited wants of the consumers. -the resources consumed in production.
Answer:
D) Diversity
Explanation:
Emphasizing the degree to which members share a demographic attribute is emphasizing in at what extent a community is diverse. There is a space of doubt between Organizational Demography since it means how people are within a specific space (in this case, the organization). However, here are referring to the degree of differences (diversity) and not how the organization is (demography).