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nikklg [1K]
3 years ago
10

All else equal, the price elasticity of demand for a good tends to be lower: A. if the good represents a large share of a consum

er's budget. B. if the good has many close substitutes. C. if the good has few close substitutes. D. in the long run.
Business
1 answer:
kvasek [131]3 years ago
3 0

Answer:

C. if the good has few close substitutes.

Explanation:

The price elasticity of demand refers to the percentage of change in the demand when the price suffers a variation. The price elasticity of the demand is higher when a change in the price of the product generates a big change in the demand which can be the result of the good having many substitutes. Also, the price elasticity of the demand is lower when a change in the price causes a small change in the demand which can be explained by the good having few substitutes. According to this, the answer is that all else equal, the price elasticity of demand for a good tends to be lower if the good has few close substitutes.

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Convenience goods like Coke are available almost everywhere in the United States. Thus, Coke uses ______ distribution:
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Convenience products like Coke are available almost everywhere in the United States. Thus, Coke uses intensive distribution, which is related to the strategy of making the product available at many different retailers.

This is a marketing strategy widely used by companies that supply non-durable consumer goods, which are those that are consumed quickly, such as food, beverages and medications.

Therefore, non-durable goods such as Coke need to be replenished quickly, justifying the company's intensive distribution strategy, which makes its products easily available to consumers, increasing its profitability and positioning.

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7 0
2 years ago
2) You purchase one MBI July 125 call contract (equaling 100 shares) for a premium of $5. You hold the option until the expirati
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Answer:

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Since the call is for 125 shares for $125 and the selling price per share is $123  due to which the contract is not implemented. So the premium amount would be recorded as a loss of $500

8 0
3 years ago
A U.S. firm sells merchandise today to a British company for £150,000. The current exchange rate is $1.55/£ , the account is pay
Andre45 [30]

Answer:

b

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4 0
3 years ago
Orange Corporation has budgeted sales of 26000 ​units, targeted ending finished goods inventory of 6000 ​units, and beginning fi
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Answer:

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Explanation:

The computation of the number of units produced next year is shown below:

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