Fixed expenses are expenses incurred within a given period of time e.g a month and remain constant and are not easily changed. They include monthly bills and expenses such as health insurance and life insurance. On the other hand, flexible expenses also called variable expenses include daily spending such as spending on food tea, which differ and change time to time .<span />
Answer:
RELATIVELY INELASTIC
more elastic
less
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded
If demand is relatively inelastic and price increases, there would be little or no change in the quantity demanded and as a result, total revenue would increase
If demand were elastic and prices were increased, quantity demanded would fall more than the increase in price. As a result, total revenue would fall
In the long run, people have more time to search for suitable alternatives. Thus, demand tends to be more elastic in the long run
If the long run, price is increased, the total quantity demanded would fall and revenue would fall
Answer:
• may be required to incur high costs for abandoning old technologies in an effort to keep pace with suppliers.
• may need to continue producing suboptimal products rather than upgrading its technology
Explanation:
You didn't provide the options but I searched online and got the options from which the correct answers were chosen.
Vertical integration occurs when the suppliers or retailers is being controlled or owned by a company and hence, control its supply chain. This brings about reduction in costs and the improvement in efficiencies.
When there are improvements in technology at the supply stage of the value chain, the company will need to:
• may be required to incur high costs for abandoning old technologies in an effort to keep pace with suppliers.
• may need to continue producing suboptimal products rather than upgrading its technology