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3 years ago

A decrease in supply will cause the smallest increase in price when

Business

1 answer:

andre [41]3 years ago

6 0

Answer:

Both supply and demand are elastic.

Explanation:

Demand or supply elasticity is defined as elasticity or responsiveness with more than one numerical value, which indicates their high response to the change in price.

Elastic demand: It is the percentage change in quantity demanded due to the change in price in absolute value of the product.

The elasticity of supply: It is defined as the response of the quantity of a good supplied to a change in the price of the good. Likely to be positive in output.

FORMULA; Elasticity of supply= $(\%\ change\ in\ quantity\ supplied) / (\%\ change\ in\ price)$

Due to the decrease in the supply of goods in the market, it leads to the scarcity of goods, therefore there is an increase in the price of goods.

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using a computerized inventory management system, a paint supply store franchise continuously monitors the inventory of all the

NemiM [27]

Holding costs if 40% of the purchase price per gallon per year. The total annual inventory cost for the company's current policy is $1,487.56.

The total cost of annual holdings and yearly service fees is included in the annual index cost.

This can be estimated by:

Cost of ordering = $35

Ordering number = 90 gallons

Price = $4.00

Cost of holding = 40% × 4 = 1.6 per unit per year

Weekly needs = 70 gallons

Number of weeks in a year = 52

Yearly demand = 52 × 70 = 3630

Numbers of orders = 3640/90 = 40.444

Total ordering price = 40.444 × 35 = 1415.56

Inventory holding amount = 90/2 × 1.6 = $72

Total inventory cost = 1,415.56 + $72 = $1,487.56

Therefore, the total annual inventory cost will be $1,487.56.

To learn more about annual inventory cost

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5 0

1 year ago

Which of the following statements is not true about shareholders?

s2008m [1.1K]

Answer:

They own equal shares of company assets.

Explanation:

The statement above is false because shareholders can own vastly different amounts of shares.

For example, a group of 2 people and 5 companies own over 50% of the shares of Alphabet (the corporation that owns Google), giving this small group of people the voting power to take decisions during assemblies.

Meanwhile, thousands of investors also own a small number of shares of Alphabet because it is a publicly traded company, but these small investors have essentially no voting power.

5 0

3 years ago

Assume a demand equation for good 'x': Upper Q equals 9 minus 0.1 p minus p Subscript y Baseline plus 0.01 p Subscript z Baseli

yan [13]

Answer: Q = 5.8 units

Explanation:

Q = 9 - 0.1p - py + 0.01pz + 0.0005Y

Where,

p = own price of the good

py = price of a related good = $3

Q = quantity demanded

pz = price of a different related good = $200

Y = consumer income = $4,000/mo

Therefore,

Q = 9 - 0.1p - 3 + 0.01 × 200 + 0.0005 × 4000

Q = 9 - 0.1p - 3 + 2 + 2

Q = 10 - 0.1p

If price of this good 'x' is equal to $42 per unit then,

Q = 10 - 0.1 × 42

= 10 - 4.2

Q = 5.8 units ⇒ Quantity demanded

8 0

3 years ago

Read 2 more answers

________ is a strategy in which the salesperson provides customers with the opportunity to purchase related products or services

Ainat [17]

Answer:

Up selling

Explanation:

Up selling is a sales strategy. It is an attempt at making more sales using persuasion. It is different from cross-selling in that the customer is not asked to purchase a new item but only purchase a more expensive product or even simply an add-on to the already bought product he/she has.

While it is allowed in terms of ethical consideration to persuade the customer to purchase through up selling, it however becomes unethical when the sales person starts to push the sale. What is meant by pushing the sales refer to the use of half truth or falsehood to literally trick the customer into getting the product. This is an ethical issue and be tried in a capable court of law

7 0

4 years ago

Read 2 more answers

The advantage that focused companies have over their broad market rivals is that they: a. can sell on non-price factors, such as

Lapatulllka [165]

Answer:

The answer is "C"

Explanation:

Sell fewer products in bulk to outsell their rivals.

This will help the company swell their products bit by bit but in a more effective way reaching out to the end users(consumers).

5 0

4 years ago