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4 years ago

Why do companies lower product prices and offer free samples?

1 answer:

7 0

Companies lower the prices of their products and give out free samples to get the eye of the public; and so many people will test their products, love them and come back and buy it many times because of how low the price is compared to other stores.

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Which of the following buys products in foreign markets and then sells them for resale in its home country?

julsineya [31]

Answer:importer

Explanation:

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4 years ago

Real GDP:

Gre4nikov [31]

Answer:

The correct answer is measures economic activity and income.

Explanation:

Real GDP is the economic measure to determine the total production of goods and services produced by a country at constant prices. This means that this indicator does not take into account price changes over time (inflation), which differs from nominal GDP, which does consider the value of money in a given period of time.

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3 years ago

He economy experiences an increase in the price level and an increase in real domestic output. which is a likely explanation?

-Dominant- [34]

Aggregate demand will fall, real production will fall, but the price level will remain the same.

Rising prices usually indicate that companies need to expand production to meet higher aggregate demand. if supply remains constant and demand increases, consumers will compete for available goods and pay higher prices. this dynamic is pushing companies to increase production and sell more goods.

The intuition behind the real wealth effect is that the lower the price level, the less money you need to buy goods and services. the money you have is now more valuable and you feel richer. therefore, real GDP increases in response to lower price levels.

In the middle part of the AS curve, the higher the price level of output, the higher the output continues to grow, but the steeper the slope of the aggregate supply curve shows, the higher the price, the higher the quantity. the levels are not that big.

Learn more about Aggregate here brainly.com/question/15267784

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6 0

2 years ago

Olivia likes to eat both apples and bananas. At the grocery store, each apple costs $0.20 and each banana cost $0.25. Olivia’s u

icang [17]

Answer:

Therefore, Olivia should buy 10 apples and 8 bananas to maximize her utility.

Explanation:

Let A represent the number of apples bought and B represent the number of bananas bought. Therefore since Olivia has $4 to spend:

0.2A + 0.25B = 4 (1)

Also, the tangency condition can be used to find the optimal amount of A to relative to B. It is give as:

$MU_A/P_A=MU_B/P_B\\\\\frac{3\sqrt{\frac{B}{A} } }{0.2}= \frac{3\sqrt{\frac{A}{B} } }{0.25}\\\\15\sqrt{\frac{B}{A} }=12\sqrt{\frac{A}{B} }\\\\squaring\ both\ sides:\\\\\frac{225B}{A} =\frac{144A}{B}\\\\225B^2=144A^2\\\\B^2=0.64A^2\\\\Taking\ square\ root:\\\\B=0.8A$

Put B = 0.8A in equation 1:

0.2A + 0.25(0.8A) = 4

0.2A + 0.2A = 4

0.4A = 4

A = 10

B = 0.8(A) = 0.8(10) = 8

Therefore, Olivia should buy 10 apples and 8 bananas to maximize her utility.

6 0

3 years ago

Amy just applied for a position with Rory’s firm. Rory knows that Amy will earn $20 an hour and can produce a value of the margi

Kaylis [27]

Answer: The correct answer is "e. hire; positive".

Explanation: Amy just applied for a position with Rory’s firm. Rory knows that Amy will earn $20 an hour and can produce a value of the marginal product of labor (VMPL) of $40. Rory will <u>hire</u> Amy because her VMPL is <u>positive.</u>

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4 years ago