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Yuki888 [10]
3 years ago
5

Why do​ long-run elasticities of demand differ from​ short-run elasticities? ​Long-run elasticities of demand differ from​ short

-run elasticities because A. it takes time for people to change their consumption habits. B. durable goods last a relatively long time. C. firms may be constrained in the short run by production capacity. D. both A and B are correct. E. all of the above.
Business
2 answers:
damaskus [11]3 years ago
4 0

Answer:

A. it takes time for people to change their consumption habits.

Explanation:

Elasticity is a measure of the sensitivity of demand to price changes. We say that a demand is elastic when a slight variation in price is sufficient to impact the demand for a good or service. On the contrary, we say that demand is inelastic when price changes do not significantly change demand for the good. Normally goods are more elastic in the short run, as consumers tend to be refractory to price increases and slow the purchase of goods. Consumers tend to worry that it may be a passing price increase. However, in the long run consumers' perceptions of price increases adjust and demand normalizes, especially if the good is an essential good. For example, rising gasoline prices may decrease demand for gasoline in the short term. In the long run, consumers end up buying gasoline because it is a necessity item for those who own cars. Therefore elasticity tends to be less elastic in the long run.

Ne4ueva [31]3 years ago
3 0

Answer:

The correct answer is option D.

Explanation:

Long-run elasticities of demand differ from short-run elasticity. In the short period is more inelastic. This is because people take time to adjust their consumption habits. So if the time period people have to adjust to the price change is long, then the demand will be elastic.  

Durable goods can be used for a relatively long time. So they will have a less elastic demand.

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From the beginning of 2000 until its peak in 2012, Apple’s stock price rose from $27.97 to $702.10, an increase of 25 times. Yet
Tcecarenko [31]

Answer:

Steve Jobs coming back, Innovations, and Tim Cook taking over as COO

Explanation:

The fluctuations in stock prices of a company are due to improved performance of the company in meeting it's objectives and perception that the business will do better in the future.

In the given scenario there was an initial increase in Apple’s stock price from $27.97 to $702.10, an increase of 25 times.

This can be attributed to the return of Steve Jobs as the CEO of Apple. There was a confidence boost by his coming back. Also there were various innovations like: iPhone, iMac, iPod, and iTunes. These improved the performance and by extension share price of Apple.

However when Tim Cook took over as COO he reduced production by half resulting in stock price decrease by 37% from its peak in September 2012 until the end of March 2013, from $702.10 to $442.66.

3 0
3 years ago
Imperial Jewelers manufactures and sells a gold bracelet for $403.00. The company’s accounting system says that the unit product
AysviL [449]

Answer:

a) Financial advantage   <u> $2,208 </u>

b) The company should accept the special order, as it will increase its profit by $2,208

Explanation:

<em>The relevant costs for decision to accept the special order are  </em>

<em>I Incremental Revenue from the special order  </em>

<em>2. incremental variable cost </em>

<em>3. The cost of the special tool</em>

Unit variable cost = 143 + 90 + 8 + 7 = $240

<em>Note that that the increase in material cost of $8 and the variable manufacturing overhead of $7 are relevant to the special order decision. Hence they are added.</em>

<em>And the balance of manufacturing overhead would be incurred either way. Therefore , they are not relevant for the decision</em>

                                                                                                       $

Sales revenue from special order

(22× $361.00)                                                                               7942

Variable cost of special order

(22× $240 )                                                                                    (5280 )

Cost of special tool                                                                      <u> (454)</u>

Financial advantage                                                                    <u> 2,208 </u>

The company should accept the special order, as it will increase its profit by $2,208

3 0
3 years ago
To find all mentions of your competitor's branded hashtag within a given radius of a store you've opened up in a new city, you s
Alenkasestr [34]
<span>To find all mentions of your competitor's branded hashtag within a given radius of a store you've opened up in a new city, you should set up a geo-search stream. When you set up the geo-search stream, have it filter the hashtag and the desired radios around the stores you wish to track. Tracking this will allow the company to have more insights on their competitors. </span>
3 0
3 years ago
What is the difference between limited liability and unlimited liability
SOVA2 [1]

Answer:

Limited liability means the business owners' liability for debts is restricted to the amount they put into the business. With unlimited liability, the business owner is personally responsible for any loss the business makes.

Explanation:

5 0
2 years ago
Glinda goes to the supermarket for her monthly grocery shopping. As she waits in the line at the cash register, she sees her fav
ycow [4]

Answer:

<em><u>Convenience products.</u></em>

Explanation:

Convenience products are those goods or services that are purchased by the consumer with high frequency without comparison criteria or high purchasing efforts. These products are widely distributed so that the consumer has the availability of purchase at any time. Examples include magazines, fast food, detergents and beverages.

Some of its features are:

  • Low price,
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  • High frequency of replacement at points of sale,
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7 0
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