Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
A decrease in the elasticity of demand for the cartel's product.
Explanation:
The cartel is under the control of companies operating in the same area. This is undesirable. It is concluded between businesses and these contracts prevent competition. Such arrangements are also prevented by governments, which aims to promote competition among governments across the country. This type of arrangement creates unity and demonstrates business behavior in activities that prevent other competitors from entering the sector.
Adverse effects on consumers include:
1) Higher prices - cartel members can raise prices, which reduces the demand elasticity of any member.
2) Lack of Transparency - Members may agree to hide prices or hide information such as hidden charges in credit card transactions.
3) Limited production - Members may agree to limit market production, such as OPEC and oil quotas.
4) Build Market - Cartel members can collectively divide a market into regions or regions and not compete in each other's territory.
Answer:
a. 534.23
b. 23.21
c. $448.75
d. 16.26%
e. $1,346.22
Explanation:
PLEASE CHECK ATTACHMENT FOR COMPLETE SOLUTION AND STEP BY STEP EXPLANATION
Answer:
c. market competition would increase, decreasing profits.
Explanation:
if people resell their old diamonds, then market competition would increase, decreasing profits. Introducing de beers old product into a market system will directly alter the sales of new products being developed by de beers. Their products has gained great trust among customers and even in the case of resales, a good number of needing customers would not mind as the value of Diamonds stays on the high side and this will affect market competition.
