How does the existence of substitutes affect the price elasticity of demand?A) The existence of substitutes leads to higher pric
es in the marketplace.B) If there are many substitutes, the price elasticity of the good is more elastic.C) The existence of substitutes leads to a situation with perfect elasticity.D) The existence of substitutes makes the price elasticity of demand inelastic.
B) If there are many substitutes, the price elasticity of the good is more elastic.
Explanation:
Price elasticity of demand measures how quantity demanded changes when price level changes.
If there are subsituites for a good, the demand for the good tends to be more elastic - a small change in price leads to a greater change in quantity demanded.
Suppliers would be less motivated to increase prices if there are many close substitutes for its goods.
The answer is: Treetopplers's wood production is not included in the GDP
Explanation:
The GDP includes all the domestic production of final and legal goods and services.
The value of final goods is included, but not the parts that go into them (intermediate goods). In this case, the wood Treetopplers produce is used by other companies (e.g. Buildit and Partners) to build final goods such as new houses. So the wood is an intermediate good.
From the question, we are informed that whenever Andrew considers upgrading his personal computer system, he normally consults with Jeremy, a knowledgeable friend who always has the newest technology.
Regarding the question, Jeremy is an innovator. An innovator is someone who has embraced new ideas and is always trying out new gadgets and technology.
Explanation: There are several stages of management in a company to most important of them is the top management. The decisions by top managers affect the organisation as a whole and the success and failures of the organisation highly depends on their actions. Examples of top management are directors and vice president .
In the above case, Geraldo is the vice president of the company and also he is responsible for determining the directions of operations of the company thus we can consider him in the top management.
