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masha68 [24]
3 years ago
12

A decrease in supply will cause the largest increase in price when a. both supply and demand are inelastic. b. both supply and d

emand are elastic. c. demand is elastic and supply is inelastic. d. demand is inelastic and supply is elastic.
Business
1 answer:
Bezzdna [24]3 years ago
6 0

Answer:

c. demand is elastic and supply is inelastic.

Explanation:

Elasticity is a measure of how buyers and sellers react to a change in prices, and allow us to analyze supply and demand more accurately.

The price elasticity of demand measures how much the quantity demanded changes due to a change in prices. If the demand curve is elastic, total revenue falls as the price increases. If the demand curve is inelastic, total revenue increases as the price increases.

With an elastic demand curve, an increase in prices leads to a decrease in the quantity demanded, in a greater proportion than the increase in prices, in this way total revenue decreases. and the supply decreases greatly.

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The correct answer is B) traditional.

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When a multinational company is planning on initiating operations in another country, it has to be very sensible of the traditional values of that country. The company is getting into a new market and people could have different belief systems, different culture, traditions, and customs, that need to be carefully assessed by the multinational company if they are about to be successful in the new country.

This is the case of India, which has always have very strict traditional values, although younger generations are relaxing those values in recent years.

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Option B is correct one.

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8 0
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