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2 years ago

What is it called where consumers react to rising prices by consuming less of a good and more of it's competitors?

Business

1 answer:

adelina 88 [10]2 years ago

6 0

Answer:

Substitute Effect

Explanation:

When a product's price increases, it becomes relatively expensive compared to its alternatives. The high price will encourage consumers to choose other goods that are relatively cheaper. Consequently, the price increase reduces the demand for the product while increases the demand for its substitutes.

The substitution effect describes how consumption is affected by an increase or a decrease in a product's price.

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Matthew Liotine's Dream Store sells water beds and assorted supplies. His best-selling bed has an annual demand of 410 units.

never [62]

Given:

Annual demand = 410 units

Ordering cost = $41

Holding cost = $5 unit per year

To find:

Number of units to be ordered each time an order is placed

Solution:

On calculating the number of units,

$\Rightarrow \sqrt{(\frac{2(390)(38)}{5})} \rightarrow\sqrt{\frac{780\times38}{5}}= 76.99$

Therefore, to minimize the total cost, approximately 77 units should be ordered each time an order is placed.

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3 years ago

A young couple living in rural west-central Missouri heard about the closing of a local grocery store. Although a small operatio

Zina [86]

Answer:

The correct answer is letter "C": the invisible hand.

Explanation:

In Economics, the term "invisible hand" refers to the belief that markets are created according to the demands and needs of individuals who take advantage of opportunities without the need for the intervention of other parties like a government. The term was coined by Scottish Enlightenment thinker Adam Smith (1723-1790) in his book "An Inquiry into the Nature and Causes of the Wealth of Nations" (1776).

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3 years ago

It is only necessary to underline vocabulary words identified in a test question. Please select the best answer from the choices

Rashid [163]

Answer:

The answer you are looking for is false

Explanation:

Got it right edge 2021

8 0

2 years ago

Read 2 more answers

A metallurgical engineer decides to set aside money for his newborn daughter's college education. He estimates that her needs wi

erastova [34]

Answer:

what should be the size of each deposit, if the account earns interest at a rate of 8% per year?

$2477,81

Explanation:

% N Monthly % VF

1,08 0 2477,81117 1,00 2.477,81

1,08 1 2477,81117 1,08 2.676,04

1,08 2 2477,81117 1,17 2.890,12

1,08 3 2477,81117 1,26 3.121,33

1,08 4 2477,81117 1,36 3.371,03

1,08 5 2477,81117 1,47 3.640,72

1,08 6 2477,81117 1,59 3.931,97

1,08 7 2477,81117 1,71 4.246,53

1,08 8 2477,81117 1,85 4.586,26

1,08 9 2477,81117 2,0 4.953,16

1,08 10 2477,81117 2,16 5.349,41

1,08 11 2477,81117 2,33 5.777,36

1,08 12 2477,81117 2,52 6.239,55

1,08 13 2477,81117 2,72 6.738,71

-20.000,00

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3 years ago

Jamie is looking for a new job. She used to be the top sales representative for the region and was expecting to be promoted. How

LUCKY_DIMON [66]

Answer: Performance-Reward

Explanation:

Jamie's dissatisfaction with her job arises from the lack of performance-reward relationship in her place of work, this is because position she merited based on her high performance was given to another individual unfairly. Performance-reward relationship is when an employee expects a certain type of reward for outstanding performance on their(the employee's) part.

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3 years ago