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Alecsey [184]
3 years ago
5

Suppose one rental car company raises its prices and the rival car companies leave their prices unchanged. But when another rent

al car company lowers its prices, the other companies match the price decrease.
This situation is an example of ______.
Business
1 answer:
Karo-lina-s [1.5K]3 years ago
7 0

Answer:

This situation is an example of cross Price elasticity of Demand

Explanation:

If change in Price in Rental Company A doesn't necessitate change in prices in Rental companies B.C.D.E & F

Then the products A has on offer are not close substitutes to the rival companies

However where Rental company G lowers his price and it immediately triggers a Price reduction in Companies B to F, then obviously they offer similar products that are close substitutes and serve similar segment or channel of the Market Size. Thus failure to lower their Price will automatically see Customers rent cars more from Company G.

This situation is an example of cross Price elasticity of Demand

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A country with a relatively low level of real GDP per person is considering adopting two policies to promote economic growth.The
IceJOKER [234]

Answer:

The correct answer is the letter d. Neither the first nor the second.

Explanation:

GDP (gross domestic product) growth is influenced by various factors, consumption, investment, technology, external sector, etc. The policy of restricting foreign trade by placing barriers to trade has reduced GDP as it burdens one of the drivers of economic growth, for example by reducing exports to the rest of the world and thus GDP. Similarly, restricting foreign portfolio investment contributes to non-GDP growth, as foreign investments play an important role in increasing companies' capitalization, helping them to make more investments. Therefore, both economic policies are wrong.

4 0
3 years ago
Risle Incorporated is a paper supply company. One of its largest customers is Allende Publishers, a publishing house that makes
Feliz [49]

Risle Incorporated is a paper supply company. One of its largest customers is Allende Publishers, a publishing house that makes books. If Risle Incorporated decides to acquire and merge with Allende, the merger is most likely to be called a vertical merger.

<h3>What is vertical merger?</h3>

A vertical merger is the union of businesses that operate at various phases of the production process, such as raw materials, finished goods, and distribution. A merger between a steel manufacturer and an iron ore producer serves as an illustration.

Some characteristics of vertical merger are-

  • A vertical merger is when two or more businesses come together to provide various supply chain services for a single item or service.
  • Most frequently, a merger is implemented to boost business, get more control over the supply chain process, and create synergies.
  • Usually, a manufacturer and a supplier are involved. Contrarily, a competitor in the same industry as the purchasing company is acquired in a horizontal merger.
  • A vertical merger's primary goals are to gain market share, boost productivity, and maximize cost reductions in order to generate larger profits.
  • An example of a vertical merger would be an automaker combining with a parts supplier.
  • A arrangement like that would give the car division better access to parts pricing and increased manufacturing process control.
  • In turn, the components section would be ensured a consistent flow of business.

To know more about vertical merger, here

brainly.com/question/9282351

#SPJ4

3 0
2 years ago
You are now 20 years of age and decide to save $100 at the end of each month until you are 65. If the interest rate is 9.2%, how
anyanavicka [17]

Answer:

FV= $804,326.91

Explanation:

Giving the following information:

Monthly deposit (A)= $100

Interest rate (i)= 0.092/12= 0.0077

Number of periods= 45*12= 540 months

<u>To calculate the future value, we need to use the following formula:</u>

FV= {A*[(1+i)^n-1]}/i

A= monthly deposit

FV= {100*[(1.0077^540) - 1]} / 0.0077

FV= $804,326.91

5 0
3 years ago
Rubbermaid allows employees to spend a percentage of their working time on special projects. Imagine that, as a manager for Rubb
notsponge [240]

Answer:

Hire an external consultant to pick new team members for you

Explanation:

On the given scenario there are limited project spaces and plenty of volunteers for those positions.

An equitable and impartial method of choosing team members needs to be used to avoid conflict.

The best solution is to hire an external consultant who can be seen as impartial to do the selection.

This way employees will accept the objectivity of the selection since the external consultant does not have any underlying.interest in who occupies the project positions

3 0
3 years ago
The martin family has a disposable income of $90,000 annually. assume that their marginal propensity to consume is 0.8 (the mart
stiks02 [169]
90000$:100%=x$:80%, x*100=90000*80, x=72000$
The Martin family spends 80% of annual income which is 72000$ and their autonomous consumption spending is 10000$.
So Martin's family annual consumer spending is 72000$+10000$=82000$.
7 0
3 years ago
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