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Hunter-Best [27]
3 years ago
5

Suppose income increases by 25 percent​ and, as a​ result, the quantity of a particular brand of automobile demanded​ (holding t

he price for this particular automobile​ constant) decreasesdecreases by 37 percent. The income elasticity of demand for this brand of car is_____. This particular brand of automobile is​ a(n) _____ good. In another​ example, suppose market research shows that a particular brand of truck is a normal good and a luxury. If​ so, then the income elasticity of demand for this truck is:______.
A. Less than 1 but greater than 0.
B. Negative.
C. Greater than 1.
D. Positive.
E. Zero.
Business
1 answer:
yKpoI14uk [10]3 years ago
6 0

Answer:

-1.48

<u>Inferior Good,</u> as their quantity demanded decreases as the income of the consumers increases.

C. Greater than 1

As to be a normal good, the income elasticity should be positive. Then, when betwene 0 and 1 this is a necessary good used for the consumer to met their normal living standard

While above 1, menas their expense is more than proportional than income thus, it increases as the income increases more than proportionally that represent a luxury good.

Explanation:

To solve for the income elasticity we divide the variation in quantity over the variation in price:

-37/25 = -1.48

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A narrow market focus is to a differentiation-based strategy as a __________________. technological innovation is to a cost-base
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Answer: possible options:

A.growth market is to a differentiation-based strategy

B. broadly-defined target market is to a cost leadership strategy

C. growth market is to a cost-based strategy

D. technological innovation is to cost-based strategy

Answer is B

Explanation:

Companies that use a cost leadership strategy and those that use a differentiation strategy share one important characteristic: both groups try to be attractive to customers in general. These efforts to appeal to a broad range of consumers can be contrasted with strategies that involve targeting a relatively narrow niche of potential customers. These latter strategies are known as focus strategies (Porter, 1980).

Focused cost leadership is the first of two focus strategies. A focused cost leadership strategy requires competing based on price to target a NARROW MARKET. A firm that follows this strategy does not necessarily charge the lowest prices in the industry. Instead, it charges low prices relative to other firms that compete within the target market. For example, you might be able to buy milk cheaper by driving to a big-box grocery store in your local community or town, but the local corner store is the cheapest within walking distance. Redbox, a major DVD rental company, uses vending machines placed outside grocery stores and other retail outlets to rent DVDs of movies for $1. There are ways to view movies even cheaper, such as through the flat-fee streaming video subscriptions offered by Netflix. But among firms that rent actual DVDs, Redbox offers unparalleled levels of low price and high convenience.

8 0
2 years ago
1 of 5) What does it mean to "Diversify" your portfolio?
eduard

Answer:

D. A and B

Explanation:

5 0
3 years ago
A firm’s stock is expected to pay a $2 annual dividend next year, and the current $50 stock price is expected to rise to $60 ove
pochemuha

Answer:

Expected rate of return will be 24%

So option (b) will be correct option

Explanation:

We have given dividend in next year will be $2

So dividend D_1=2$

Current stock price P_0 = $50

And it is given that in next year stock price is $60

So growth rate =\frac{60-50}{50}=0.2 = 20%

We have to find the expected return after 12 month, that is after 1 year

We know that current price is given by P_0=\frac{D_1}{R_e-g}

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So expected rate of return will be 24%

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The German sociologist Max Weber invented the idea of charismatic authority. It involves a kind of organisation or leadership where the leader's charisma confers authority. This contrasts with two other sorts of authority, namely traditional authority and legal authority. The three categories of authority that Max Weber identified are comprised of each of the three sorts.

The first time the word "charisma" came into use was in Saint Paul's writings to the fledgling Christian communities in the first century.

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