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Viefleur [7K]
3 years ago
6

Shoe manufacturers are not going to buy much more leather if the price of leather falls, nor will they buy much less leather if

the price rises, unless they can find satisfactory substitutes. This is an example ofA) inelastic demand
B) direct purchasing
C) straight rebuy
D) the acceleration effect
E) modified rebuy
Business
1 answer:
IgorC [24]3 years ago
4 0

Answer:

A) inelastic demand

Explanation:

Demand is inelastic if a change in price has no effect on quantity demanded.

Changes in price has no effect on quantity of leather demanded. Therefore, the demand for leather is inelastic.

Direct purchasing is buying raw materials used in the production process.

Straight rebuy is purchasing similar goods from the same supplier under similar conditions.

Modified rebuy is purchasing similar goods either from a different supplier or in a different condition.

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Elza [17]

A market supply is a schedule or curve showing the various amounts of a product that producers are willing and able to make available for sale at each possible price during a specific period.

A market demand plan is a table that shows the relationship between price and demand for a particular commodity. To better understand this relationship, many economists plot a timeline of market demand on a graph called a market demand curve.

The demand plan shows that when the price increases, the quantity demanded decreases and vice versa. These points are plotted and the line connecting them is the demand curve. The product downward slope of the demand curve again indicates the law of demand, the inverse relationship between price and quantity demanded.

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3 0
2 years ago
Which phrase best completes the list?
Jobisdone [24]

Answer:a

Explanation:

8 0
3 years ago
Is gross profit or net profit more important to consider when you're deciding how successful and profitable a company is?
ella [17]
The gross profit is more inportant than the net profit

7 0
3 years ago
If Second National Bank has more rate-sensitive liabilities than rate-sensitive assets, it can reduce interest-rate risk with a
Contact [7]

Answer: Pay fixed rate while receiving floating rate.

     

Explanation:

  According to the given question, If the second national bank contain more rate of liabilities as compared to the rate of asset in any organization then it basically reducing the risk of the interest rate by using the technique swapping with paying some fixed amount of rate at the time of receiving the floating rate.

The process of fixed to floating swap is one of the contractual process between any two types of companies or members so that they can swap their cash flow system.  

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3 0
3 years ago
Consider two firms producing smartphones. one uses a highly automated robotics process, while the other uses human workers on an
anastassius [24]
A. Which Firm will have Higher Profits in a Recession Period ?
During a recession period trade and industries are unsuccessful and there is allot of unemployment. During the period supply in the market and level of output in the company are likely to be  low. Robotic automated process seems to be relatively cheap under high production output in a firm. Also the cost of maintenance of machinery is quite high which the firm can`t cater for during the period. In this period human workers are more recommended as the cost of production will be accounted for due to small numbers of employees where the cost of wages and salaries is quite low.
B. Which Firm will have a Higher Profit During a Boom?
During a boom the industry experiences a period of economic success as demand in the market is high. Automated robotics process are machines and carry out their work with allot of efficiency. Compared to human beings they are relatively faster and more efficient. This will will help the industry meet its high level of production target. They also reduce the cost of production as their maintenance cost is low under large scale production. Human workers seem expensive during this period because cost of wages and salaries is subject per-head.
The Firm with a Higher Beta.
The automated robotics firm will have a higher beta  this is because the output will be high leading to increased supply and sale for better profitability. The robots will also function as an asset to the firm increasing the net worth to the company.
7 0
3 years ago
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