1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Tatiana [17]
3 years ago
5

You work for a marketing firm that has just landed a contract with Run-of-the-Mills to help them promote three of their products

: splishy splashies, flopsicles, and cannies. All of these products have been on the market for some time, but, to entice better sales, Run-of-the-Mills wants to try a new advertisement that will market two of the products that consumers will likely consume together. As a former economics student, you know that complements are typically consumed together while substitutes can take the place of other goods. Run-of-the-Mills provides your marketing firm with the following data: When the price of splishy splashies decreases by 1%, the quantity of flopsicles sold decreases by 18% and the quantity of cannies sold increases by 3%. Your job is to use the cross-price elasticity between splishy splashies and the other goods to determine which goods your marketing firm should advertise together. Complete the first column of the following table by computing the cross-price elasticity between splishy splashies and flopsicles, and then between splishy splashies and cannies. In the second column, determine if splishy splashies are a complement to or a substitute for each of the goods listed. Finally, complete the final column by indicating which good you should recommend marketing with splishy splashies.
Business
1 answer:
levacccp [35]3 years ago
5 0

Answer:Please refer to Explanation

Explanation:

Cross Price Elasticity of Demand is a very useful tool in Economics to ascertain if goods are compliments or Substitutes.

Cross Price Elasticity of Demand (CPSD) measures the change in demand in one good due to a change in price is the other good.

If the CPSD is negative then the goods are Compliments meaning that they are used together which is why when the price of one good goes down, the demand of the compliment goes up because more of the original good will be bought due to the lower price.

If the CPSD is Positive, it means that they are Substitutes and a Decrease in price in one good leads to a decrease in demand for the other good because people will demand less of it and switch to the former (now cheaper) good.

The formula is,

=  % change in Quantity Demanded of Product A /% change in Price of Product B

a. Splishy splashies and Flopsicles

CPSD = -18%/-1%

= 18%

The CPSD for both these products is 18% which is a positive figure. This means that they are Substitutes and <u>should not be marketed together. </u>

b. Splishy Splashies and Flopsicles

CPSD = 3%/-1%

= -3%

With the CPSD being a negative figure here, these goods are Compliments.

Splishy Splashies and Flopsicles <u>should be Marketed together</u> as they compliment each other.

You might be interested in
Negative Impact of crime on a business​
iragen [17]

Answer:

● The facts of crimes in business. With the sluggish economy the entire numbers of criminal activities have increased dramatically...

● Loss of revenue. Once the business is been compromised by such crimes, it would not be easy anymore to run the business because the funds are already affected.

● Damaged Reputation...

● Reduced production...

● Protect your business...

Explanation:

7 0
3 years ago
A detailed description of the typical consumer in a market segment is a(n) ___.
Debora [2.8K]
This would be a customer profile.
Hope this helps.

3 0
3 years ago
Read 2 more answers
The writing requirement under the Statute of Frauds means that an agreement must simply be evidenced by some type of writing, wr
Misha Larkins [42]

Answer:

It is True. the option (a) is correct

Explanation:

Solution

Given that:

The statue of fraud can be refereed to as the requirements for specific kind of contract that should be in writing and signed by the parties involved with sufficient evidence. the main idea is to stop fraud and other types of injury.

The vital aspect of statute of frauds include  the following:

  • It applies to particular types of contract and they are six classification It include contracts for  an interest for the sale of land, contracts that need to be performed in more than a year, contracts about someone else's debt presumed by other, contract in which marriage is a deliberation, contracts for good sold value more than $500 and promises by executors or administrators.
  • The motive of the contract is that it formalize the concurrence between the parties so that it can be thought seriously.
  • The statute of frauds avert fraudulent conduct of one party to another.

6 0
3 years ago
An increasing number of firms decide to install tablets and computers so that customers are able to order and pay on their own.
Gekata [30.6K]

Options:

a. have no effect on; increase; decrease; negative

b. increase; increase; decrease; negative

c. increase; increase; increase; positive

d. increase; increase; decrease; uncertain

e. decrease; increase; decrease; negative

Answer:

Option D is the correct answer.

An increasing number of firms decide to install tablets and computers so that customers are able to order and pay on their own. This can be expected to <u>increase</u> investment spending by the firms. At the same time we can expect the unemployment rate to <u>increase</u> and consumption spending to <u>decrease</u>. Overall the effect on gross domestic product (GDP) is <u>uncertain.</u>

Explanation:

Since, Firm choose to build venture by introducing tablets and PCs and hope to accomplish benefit level. And yet joblessness can be relied upon to increment and subsequently utilization spending will diminish. Thus, the general impact GDP is dubious in light of the fact that an underlying increment in venture increment the monetary development level by increment in work rate. On the off chance that business rate increment, at that point consequently utilization spending increment. And yet it was relied upon to expand joblessness rate which decline the utilization spending. Thus, all things considered GDP may increase or diminish . Consequently GDP is dubious.

8 0
3 years ago
A company has an overhead application rate of 125% of direct labor costs. How much overhead would be allocated to a job if it re
Kobotan [32]

The correct answer is $25,000.

Direct labor cost = $20,000

Overhead application rate = 125% of direct labor cost

Overhead applied =20000 * 125% = $25,000

Direct labor refers back to the salaries and wages paid to people that can be once attributed to unique products or services. It includes the price of regular operating hours, extra time hours labored, payroll taxes, unemployment tax, Medicare, employment insurance, and so forth.

A direct exertions fee is calculated actually by using dividing the predicted total hard work price by using the overall direct exertions hours. For example, if the charge is for a Machinist stage I, the enterprise would calculate the mixture of wages plus taxes and fringe advantages the business enterprise pays for this hard work class over the following yr.

Once you have got the entire value, the direct labor fee is calculated by means of dividing that dollar quantity by way of the whole hours of labor calculated in advance. The end result is the direct exertions cost consistent with the hour for the production of that product or the shipping of that service.

Learn more about the direct labor costing here brainly.com/question/26245657

#SPJ4

5 0
1 year ago
Other questions:
  • "a branding strategy in which a firm uses a different brand for each of its products is called ____ branding."
    5·1 answer
  • What is an ethical dilemma
    14·1 answer
  • In a unionized firm, the _____ clause of the collective bargaining agreement typically retains for management the authority to i
    15·1 answer
  • operation, 2,300 units were produced and 1,800 units were sold. Actual fixed costs are the same as the amount budgeted for the m
    12·2 answers
  • The current market value of the assets of AMN Co. is $47 million, with a standard deviation of 21 percent per year. The firm has
    11·1 answer
  • Value stocks usually exhibit ______ price-to-book ratios and ______ price-to-earnings ratios.A. low; lowB. low; highC. high; low
    12·1 answer
  • In some developing countries, children work in factories when they are 8 or 9 years old. The United States has strict child labo
    5·1 answer
  • Sal is very clear in defining for his subordinates the incentives available to them for different levels of performance. He make
    8·1 answer
  • Charley spends all of his income on soft drinks and pizza. Suppose he is currently buying these products in amounts such that hi
    14·1 answer
  • The shortest-route problem is a special case of the transshipment problem.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!