Answer: product benefit
Explanation:
When advertising a particular product, the product benefit simply means the benefits that the consumers will enjoy when they bunch such products.
In this case, Better Not Younger focuses on how its products make aging hair feel softer, therefore thus is the product benefit as this is what the consumers will enjoy when they purchase it.
Answer:
Increase by 5%.
Explanation:
Given that,
cross-price elasticity of demand between goods X and Y = 4
Percentage increase in consumption of good X = 20 %
cross-price elasticity of demand = Percentage change in quantity demanded for good X ÷ Percentage change in price of good Y
4 = 20 ÷ Percentage change in price of good Y
Percentage change in price of good Y = 20 ÷ 4
= 5%
Therefore, the price of good Y must be increase by 5% in order to increase the consumption of good X by 20 percent.
Answer:
The first and third statements are correct. These statements are:
The utility function of a risk-averse person exhibits the law of diminishing marginal utility.
The more wealth that risk-averse people have, the less satisfaction they receive from an additional dollar.
Explanation:
A risk-averse individual is the one who tends to avoid taking risks. In other words, such an individual prefers lower returns with known risks as opposed to higher returns with unknown risks.
The utility curve for a risk-averse individual is concave in shape. This implies diminishing marginal utility, that is, the satisfaction derived from each additional dollar gained is less than that derived from the previous dollar. Therefore, the first and third statements are both correct.
The second statement is false because risk-averse individuals do not over-estimate the probability of losing money. The fourth statement is also false because risk-averse individuals receive less satisfaction from each additional dollar, not more.
Answer;
Annual compounding
Explanation;
Annual compounding is a method of calculating and adding interest to an investment or loan once a year rather than for another period.
This is done in compound interest, which is the interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or a loan.
Using an annual compounding will prompt her to pay less interest compared to other periods.
