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Vsevolod [243]
3 years ago
12

_____ is a practice where a store sends coupons to a customer, who has already bought a product from the store, for a more expen

sive brand of the same product, in the hope that the customer would prefer the expensive brand.
Business
1 answer:
Kaylis [27]3 years ago
3 0

<em>Answer:</em>

<em>Upselling   </em><em>               </em>

<em>Explanation:</em>

<em>Upselling: </em><em>The term "upselling" is described as a specific sales technique in which a seller generally induces different customers to buy or purchase items that are considered as more expensive, upgrades or any other "add-ons" while making an effort to create a profitable sale. </em>

<em>In other words,</em><em> it is referred to as a practice or an effort to encourage various customers to buy high-end products. This is a method of persuading customers.</em>

<em>As per the question, the given statement signifies "upselling".</em>

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A company has an unbiased forecast for its demand. what does that mean?
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In words, what does it mean when an economic consultant states:" kevin's income elasticity of red wine is equal to 6?
Lady_Fox [76]

When an economist says that "Kevin's income elasticity of red wine is 6" he means that if Kevin's income increases by 10%, the quantity of red wine demanded by Kevin rises by 60%. So, red wine is income elastic. Since the income elasticity is greater than 1, red wine is a luxury good for Kevin.


Income elasticity measures the change in the quantity of goods demanded relative to a change in income.

If an increase in income results in a decrease in the quantity of goods demanded, then that good is an inferior or cheap good. The income elasticity of a cheap good is negative.

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6 0
3 years ago
The Acmeville Metropolitan Bus Service currently charges $0.99$0.99 for an all-day ticket, and has an average of 433433 riders a
Illusion [34]

Answer:

PED = 5.49

Explanation:

current price = $0.99 per ticket

average daily tickets sold = 433

average daily revenue = $428.67

if the company increases the price to $1.10, then average daily tickets will be only 169. Average daily revenue will drop to $185.90

price elasticity of demand (PED) = % change in quantity demanded / % change in price

PED = [(169 - 433)/433] / [(1.1 - 0.99)/0.99] = -0.6097 / 0.1111 = -5.49 or |5.49| in absolute terms

the price of tickets is very elastic, meaning that a 1% change in price will result in a much higher proportional change in quantity demanded

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4 years ago
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