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3 years ago

How does increase demand for a product help lower its price to consumers?

Business

1 answer:

iren2701 [21]3 years ago

7 0

Answer:

The four basic laws of supply and demand are: If demand increases and supply remains unchanged, then it leads to higher equilibrium price and higher quantity. If demand decreases and supply remains unchanged, then it leads to lower equilibrium price and lower quantity.

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Our company manufactures and sells calculators for $90 each. A major University has offered us $70 per calculator for a one-time

sergiy2304 [10]

Answer:

Increase in operating income by $5,000

Explanation:

Firstly, we shall compute the additional cost of this order,

Variable Cost = Direct material + Direct Labor + Variable factory overhead

= $25 + $20 + $15 = $60

Note: Fixed cost will not form part of this decision, as the company has additional capacity lying idle, thus no additional fixed cost will be incurred, and the fixed cost allocated i.e. $12 per unit is not relevant, as is just allocation and not incurred, it is a kind of sunk cost allocated.

Relevant cost = $60 per unit

Selling price per unit = $70 per unit

Contribution to profit = $70 - $60 = $10 per unit

Total increase in operating income = $10 $\times$ 500 = $5,000

Thus operating income will increase by this amount.

Increase in operating income by $5,000

8 0

3 years ago

What is the main purpose of performance appraisals and why do appraisal programs fail?

lora16 [44]

The main purpose as well as the cause of the failure of performance appraisal process is as described below-

Explanation:

Appraisal refers to the process (mostly formal) to evaluate the productivity of the manpower of an organisation. It serves for administrative as well as developmental purpose.

Performance appraisal serves three important purpose-

Providing adequate feedback to employees based on his/her performance.
It can help in modifying employee behaviour and thus contributing to an effective workspace environment.
Providing qualitative parameters to higher-order authority through which they can adjudge their subordinates.

However, appraisals occasionally fail in their motive due to following reasons-

Appraisals are prone to biases prevailing in the work environment. Moreover, the neutrality of the rating authority is also often under the scanner.
The appraisals are often inflicted by sampling error. The conclusion of few cannot be generalised on all.
Appraisals don’t take into account the variability of the employee's performance, Rather it relies on the end performance and the start.

5 0

3 years ago

The first step in the market research process is to define the objectives and research needs. what was nike’s primary objective

Alika [10]

<span>The first step in the market research process is to define the objectives and research needs. Nike's primary objective in conducting this research was that Nike wanted to understand its female customers.
The objectives that Nike set for their company was to understand better the women that buy their products. Thus, they conducted a research in order to do so, so as to see what drives their female customers to buy their shoes and other equipment and then tailor their products to their needs even more.
</span>

6 0

3 years ago

1. All of the factors below create a change in demand for alcohol except: a. Change in cigarette prices given that cigarettes an

Gnesinka [82]

Answer:

d. Rise in price of alcohol

Explanation:

Change in Quantity demanded occurs due to change in Price. Change in Demand happens due to factors other than price - Income, Substitute & Complementary good's price, Taste.

Change in alcohol demand - due to substitute Cigarette price change , Change [Decrease] in alcohol demand - due to change in taste based on anti drinking sentiments, higher risk of alcohol liver cirrhosis , Change [Increase] in alcohol demand - due to change [rise] in Income : These all are due to factors other than price & hence are 'Change in Demand'

Rise in price of Alcohol leads to 'Change [Expansion] in Quantity Demanded' due to price change [rise] .

5 0

3 years ago

Advertising, engineering, marketing, product design, and web design are all examples ____ of work.

Viktor [21]

Knowledge work includes, among other things, engineering, marketing, product design, and web design.

<h3>What distinguishes service work from manufacturing labor?</h3>

A service economy is built on knowledge-intensive industries and services in economic production, well-educated employees in the occupational market, and innovative enterprises in business. A manufacturing economy is driven by the mass production of products.

<h3>What are the names of networks of businesses that produce product designers, engineers, manufacturing firms, distribution channels, and consumer outlets?</h3>

A supply chain in business is a network of establishments that acquire raw materials, transform them into intermediate goods, and then distribute finished goods to customers.

To know more about marketing visit:-

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4 0

1 year ago