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lianna [129]
2 years ago
8

When XYZ firm entered the market for good A two years​ back, it kept the price of its product low to attract customers away from

its leading competitor. The firm has now established itself and has a market share of 20 percent. The management of XYZ is planning to increase price of A from the current​ $6 per unit to​ $7 per unit. Timothy​ Walters, the marketing​ head, however, feels this is not a good idea because it will reduce quantity demanded drastically from the current​ 1,200 units to 900 units. His colleague and the head of the sales​ department, Jake​ Mayers, feels that the quantity demanded would only decline by 250 units. According to​ Jake, the firm can afford to increase the price because even after the price increase they would still have significant market share. Timothy and Jake most likely agree with which of the​ following?
A. The demand curve for A will shift to the left after the price increase.
B. The equilibrium market price is less than S6.
C. The demand for good A is elastic
D. The market share of XYZ will increase in the near future.
E. The total revenue will increase even if the price rises by $1.
Business
1 answer:
Sholpan [36]2 years ago
3 0

Answer:

The correct answer is the option (C).

Explanation:

According to Timothy Walters, if price increases by $1 from $6 to $7 then quantity demanded will reduce from 1,200 units to 900 units.

This will lead to decrease in total revenue from (1,200 * $6) $7,200 to (900 * $7) $6,300.

According to Jack Mayers, if price increases by $1 from $6 to $7 then quantity demanded will reduce from 1,200 units to 950 units.

This will lead to decrease in total revenue from (1,200 * $6) $7,200 to (950 * $7) $6,650.

It can be seen that with increase in price, total revenue is decreasing in both cases. This happens when demand is elastic.

So,

Timothy and Jack will most likely to agree that the demand for good A is elastic.

Hence, the correct answer is the option (C).

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Forlornistan is a country in the midst of a serious economic downturn. Forlornistan's GDP has declined steadily for over three y
goblinko [34]

Answer:

The correct answer is option c.

Explanation:

Forlornistan is experiencing an economic downturn, the GDP has steadily declined, the employment rate is very low and the CPI is falling.

All these characteristics show that the economy is going through economic depression.

Depression refers to the situation in which an economy suffers a downturn in economic activities. It involves decrease in output level, price and employment rate.

6 0
3 years ago
Assume an analyst has been hired to estimate the price elasticity of demand for hamburger (which sells for about $2.30 per pound
Pepsi [2]

Answer:

The correct answer is B

Explanation:

Price elasticity of the demand evaluates the demand responsiveness after the change or variation in the product own price.

The formula for computing the coefficient of price elasticity, is the factors which affect the elasticity and also elasticity is vital for business when deciding the prices.

So, Filet mignon(F) sells for $20 per pound when compared to that of hamburger (H) which sells the product for $2.30 per pound. F have the higher price as compare to the H, therefore, the coefficient of the price elasticity of demand in absolute value will be high or larger for F than that of H.

6 0
3 years ago
Study groups: do they work or not?
Oduvanchick [21]

Answer:

When working on a group project, studying and working within a group will be a necessity, so you need to make it work for you! Studying in groups has its advantages and disadvantages, but the trick is to know when to resort to solo studying and when to go for group studying. Studying with a partner is a valuable way to learn as students help one another at overcoming weak points.

Advantages of Studying in Groups

1. Brainstorming

Studying in groups allows students to share their different thoughts with one another. This notion usually leads to a better learning process, since brainstorming generates new ideas and thus, students learn the same thing but with different perspectives. Open discussion enhances thinking skills and will give you access to others information and as a result, broadens your mind.

2. Clarification Discussions

Students are different and they perceive the same information differently. You can always ask your study mate to clarify a vague point for you and vice versa. Also, this action increases retention and reinforces the ideas, because the more the information is repeated the stronger the memory will be.

3. Motivation Booster

Group studying is the best procrastination solution as it breaks the monotonous learning process and it makes you attentive to what the others are saying. Mock tests and trial quizzes assist those struggling with course materials and those extracting tests and quizzes from them as well.

Disadvantages of Studying in Groups

1. Distraction

The benefits of group studies are a lot but there are also some cons to group studying. You may find it tiresome to stay focused when studying in a group. Sometimes the conversation shifts from studying to trendy events maximizing distraction. Studying alone might be helpful if you need undivided attention to the materials at hand.

2. Lack of Efficiency

Group studying hampers creativity and efficiency and when there are exams on the horizon, efficiency should be the priority. Studying alone will give you time and space to do your personalized studying. Also, when alone, you can focus freely on a certain part because you know you need to and skip other parts that you have already mastered. This allows you to manage your time wisely and prioritise your tasks.

3. Impersonalized Learning

Our brains conceive information differently, and in order to digest information correctly, you have to do it your own way, not another’s. When studying in a group, you might be studying at someone else’s pace, whether it is too fast or too slow, it will not help you with learning. Also, you might lose track of your own questions and the difficulties you might be facing with the subject at hand because students mostly do not want to diverge from the group. Creating personalized study plans for suture references will also save much time if the student loves to follow a plan and a schedule while studying.

Preferring one way over another does not necessarily mean that it is better; however, it simply means that people choose what suits their characters best. For example, a social person might find it difficult to study alone and find it more appealing to talk to people to learn and on the other hand, another social person will choose to study alone because he gets distracted easily with people and he can focus better when alone. In a nutshell, there is no way advantageous than the other; everyone has his own studying methods and each has its advantages and disadvantages.

6 0
2 years ago
Flexible budgets and variance analysis are very useful tools for managers, but are sometimes difficult to understand. Find an on
Anettt [7]

Answer:

Flexible budgets: These type of budgets are assessments, which may vary with the capacity or production for a given period.

Say for model there might be two type of budgets which bend with two or three situations of fabrication volume or production. The situations might be:

1. Budget when fabrication is at highest volume, the revenue and expenditures at the utmost output.

2. Budget when there is prime capacity, the revenue and expenditures valued at the optimal application of resources to produce optimal productivity or satisfactory output.

3. Budget when there is low capacity or demand is nearly nil, the revenues and expenditures that will be valued.

This flexible budget guides administration to appropriately plan their resources and flex with the capacity whenever it’s required subject the change in situations.

Variance Analysis: The investigation of deviance of several cost restriction with the usual set in at the start of the year results in Variance Analysis. There are several types of modifications which needs analysis and these will be diverse with the business type. The below are few common instances of modifications.

Sales capacity variances, sales combination variances, Material value variances, labor proportion variances, machine dependent price variances, overheads expenditure variances, Material procedure, Material Amount, Material replacement, labor and engine time variances etc.

These will help the administration to comprehend practically how precise the values set in for a given period of time.

5 0
2 years ago
Select the correct answers. Which product is the cheapest and requires the least planning from a buyer? A. specialty products B.
Aleks04 [339]

Answer:

the answer is D. convenience products

Explanation:

convenient products are much cheaper and consumers usually look for them by the brand, or sometimes, these products are homogenous in nature, so people would just go and buy it rather than comparing different products and prices.

4 0
3 years ago
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