What happens to the quantity demanded if the price of a slice of pizza increases is that, it will be reduced. Since it is already more expensive, people would generally find other pizzas that are lower of price that still gives them the same satisfaction. The law of demand and supply is being applied here.
Answer:
The correct answer is b) cash cows
Explanation:
The term Cash cows refers to the product lines with a high relative market share as the result of past and heavy investment but in low-growth markets. They, usually, create excess funds available that can be used to carry or support other product lines.
Answer:
A. when the owner defaults on the loan payment
Answer:
The coefficient of cross elasticity of demand is negative, and therefore these goods are complements.
Explanation:
Cross elasticity of demand is the proportionate change in the quantity demanded to the proportionate change in the price of the related goods.
Cross elasticity of demand is negative in case of complementry goods as proportionate increase in price of one goods lead to decrease in the demand of related goods as both are complimentry and demanded jointly. Example: Petrol and car.
Cross elasticity of demand is positive in case of subtitute goods as proportionate decrease in price of one goods lead to decrease in the demand of substitute goods. Example: Tea and Coffee.
