All categories

3 years ago

Explain why a car is an economic good

Business

2 answers:

BartSMP [9]3 years ago

6 0

Answer:

car is economic good because it help us to transport goods from one place to another and is can used for travelling from one place to another in a short period of time

Helga [31]3 years ago

3 0

Explanation:

material and labour used to produce it could have been used to make another good .

You might be interested in

Marketing cannot be successful if the product is not what the customer wants or if the quality is low.

makvit [3.9K]

The answer it true.

8 0

3 years ago

Question 1 of 10

Montano1993 [528]

Answer:

it's most likely B or D. but you need to double check

3 0

2 years ago

Is it possible to be a copywriter and art director?

mote1985 [20]

Yes if you actually try to become them

4 0

3 years ago

When Fisher-Price comes up with an idea for a new toy, it needs to ensure that the children who play with the toy will not choke

Dmitriy789 [7]

Answer:

The correct answer is Product Development Stage.

Explanation:

If any of the changes are required to be incorporated in a design, the best point of attempting these changes is in the product design phase such that the considerations are included from the initial stage and the design effort is not wasted.

6 0

3 years ago

A firm has estimated the following demand function for its product:

Rom4ik [11]

Answer:

(i) Q=300

(ii) Elasticity of Demand=-3.33 (elastic)

(iii) Income Elasticity= 2.5 (normal good)

(iv) Advertising Elasticity: 1.5

Explanation:

The Demand function is given by

$Q=100-5P+5I+15A$

(1) To solve (i) we need to replace P = 200, I = 150, and A = 30 in the demand equation:

$Q=100-5(200)+5(150)+15(30)=300$

(2) To find the price elasticity (how much quantity demanded changes with price) we use the point price elasticity formula

$\eta_{Price}=\frac{\Delta Q}{\Delta P}\frac{P}{Q}$

From the above equation we get: $\frac{\Delta Q}{\Delta P}=-5$

Replacing in the elasticity formula

$\eta_{Price}=-5\frac{200}{300}=|-3.33|>1$

in absolute terms the elasticity is bigger than one so it is an elastic demand.

(3) For income elasticity (how much quantity demanded changes with income), we proceed similarly as above. But the derivative is respect to income

$\eta_{Income}=\frac{\Delta Q}{\Delta I}\frac{I}{Q}=5\frac{150}{300}=2.5>1$ [/tex]

Which is bigger than one, denoting this is a normal good because it's bigger than one.

(4) Advertising elasticity (how much quantity demanded changes with expenditures in advertising), we proceed as before

$\eta_{advertising}=\frac{\Delta Q}{\Delta A}\frac{A}{Q}=15\frac{30}{300}=1.5$

3 0

3 years ago