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FrozenT [24]
3 years ago
10

Suppose that on Valentine's Day, the demand for both roses and greeting cards increases by the same percentage amount. However,

the price of roses increases by more than the price of greeting cards. Based on this information, you can conclude that the supply of Valentine's cards is sensitive to price than the supply of roses?
Business
2 answers:
BigorU [14]3 years ago
6 0

Answer:

Based on the information supply of cards is more elastic (price sensitive) than that of roses

Explanation:

Price elasticity of supply is defined as the sensitivity of quantity supplied to changes in price.

The formula is given below

Price elasticity of supply= Change in quantity supplied ÷ Change in price

In this scenario the demand for both roses and cards increases, however the price of roses increases more.

This implies that the denominator in the formula is higher in roses resulting in smaller price elasticity of supply.

The elasticity of supply for cards is higher than that of roses, so it is more sensitive to changes in price.

Cards can be stored from year to year so the labour for maintaining a stock of cards is low with resultant low price.

On the other hand roses require care to grow. It requires watering, application of chemicals to treat infestation and so on. So suppliers tend to push the extra cost of growing roses to the buyers

IgorC [24]3 years ago
3 0

Answer:

Yes , Valentine cards are more price sensitive.

Explanation:

When Demand exceeds supply, prices rise. As a result of the increase in price, supply increases.

The increase in supply is in line with the law of supply which says, the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied.

If there's an increase in the demand for roses and cards, it is expected that prices would rise. However, if supply for these items increases, prices would fall and if supply doesn't increase, price would not decrease.

So if the price of roses increases by more than the price of greeting cards it indicates that the supply of rose didn't increase as much as the increase in supply of cards.

This means that the supply of roses is less price sensitive when compared to greeting cards.

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For a given market, suppose that the quantity demanded is 240 units if the price is $20 and the quantity demanded is 275 units i
Verizon [17]

Answer:

true

Explanation:

Equilibrium is the point at which quantity supplied equals quantity demanded. Above equilibrium price, there would be excess supply and below equilibrium price, there would be excess demanded and a shortage.

Equilibrium price is $20 units and equilibrium quantity s 240 units

When price is $16, demand is 275 and supply is 200 units

Shortage = 275 - 200 = 75 units

4 0
3 years ago
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Angelina_Jolie [31]

In presidential elections, voters often find that they do not agree with any single candidate in all issues that matter to them this is known as limited and bundled choice problem.

Option d

<u>Explanation:</u>

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The limited and bundled choice issue reduces the economic efficiency as a politician selects the programs with either positive or negative net benefits. The choices are bundled in that the limited set of candidates would govern over a multiple issues, and the preferences of the voters may not be perfectly aligned with any candidate.

8 0
3 years ago
Which type of savings institution is owned and operated by the same people who have accounts in it
inn [45]

A credit union is owned and operated by the people who have accounts in it. In a traditional bank, the bank is run by a president and a board of higher people. In a credit union, all members of the union own a stake of the company and the board is made up of members of the credit union.

7 0
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To be effective as a successful general manager of a hotel, the manager should exhibit all of the following traits except: Group
Masja [62]

Answer: The manager should exhibit all the traits except computer programming skills.

Explanation: A successful general manager or a manager that is striving to be successful will/should possess the following traits:

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8 0
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Although we usually think of marketing in terms of the piles of consumer goods begging for our dollars every day, the reality is
elixir [45]

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5 0
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