Answer:
Income effect
Explanation:
The effect is because the customer purchasing power has been changed due to which he is now able to buy more to fulfill his needs and wants. The income effect occurs due to two reasons.
Number 1. The real income of the person has been increased which means his purchasing power has been increased. This means previously you were earning $2000 a month and now you are earning $10000 a month. Now you can buy New Iphone every month because your real income has been increased and this has increased your purchasing power.
Number 2. The price of the product has been fallen and now it is in range of the purchasing power of the customer. This means that if Iphones 11 are available at $100 then everybody buy Iphone 11. This is because the product is in the range of purchasing power of greater number of customers.
Answer:
0.75
Explanation:
The cross price elasticity measures how a change in price of one good affects the quantity demanded of another good
Cross price elasticity = percentage change in quantity demanded of pens / percentage change in the price of pencils
percentage change in quantity demanded of good A = (150 -100) / 100 = 0.5 = 50%
percentage change in the price of good B = (2.50 - 1.50) / 1.50 = 0.67 = 67 %
Cross price elasticity = 50% / 67% = 0.75
I hope my answer helps you
Answer:
The answer is below
Explanation:
At least the three ways in which the company sought to differentiate itself from rival jewelry firms.
1. By providing customer service and extra services such as custom products, free return shipping, easy order process, cheap care, and repair
2. By ensuring there is constant innovation and technological advances, such that the rivals would found it hard to imitate.
3. By carrying out marketing and brand relation services in the smaller communities to enhances their images.
D. suitability for the product and ability to make the purchase
