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Svet_ta [14]
3 years ago
12

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.
Business
1 answer:
choli [55]3 years ago
4 0

Answer:

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.

I hope my answer helps you.

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Assume the macro islands can produce either 25 fishing boats or 150 jars of guava jelly in one hour. the micro islands can produ
LenKa [72]

Answer:

The correct answer is letter "C": the Macro Islands have a comparative advantage in producing fishing boats, and the Micro Islands have a comparative advantage in producing guava jelly.

Explanation:

Comparative advantage is an advantage an individual, organization or country has to use <em>opportunity costs</em> in their production compared to their competitors. The scenario described above does not imply that the individual, organization or country has an absolute advantage.

In the example proposed:

  • Comparative advantage of Macro islands in fishing boats = \frac{25}{150}=  0.17
  • Comparative advantage of Micro islands in fishing boats = \frac{30}{300} = 0.10

  • Comparative advantage of Macro islands in jars = \frac{150}{25} = 6
  • Comparative advantage of Micro islands in jars = \frac{300}{30} = 10

Thus, <em>the Macro Islands have a comparative advantage in producing fishing boats, and the Micro Islands have a comparative advantage in producing guava jelly.</em>

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Im guessing the 3rd or the first Idunno

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ABC Company has elected to adopt the dollar-value LIFO inventory method when the inventory is valued at $125,000. The adoption t
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A survey conducted by the Human Resource Planning Society revealed that _____ percent of the responding companies believe that t
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A structure such as the one Rakeesh has where everyone reports directly to the CEO, is called a <u>Flat Organizational Structure.</u>

<u></u>

<h3>What is an Organizational Structure?</h3>

This is a system within an organization that spells out how people must relate to one another.

It also highlights how certain activities must flow for the objectives and or goals of that business or entity to be achieved.

See the link below for more about Organizational Structures:
brainly.com/question/26190165

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