Answer:
should it hold the price constant and meet all the excess demand with an increase in production
Explanation:
to determine if the firm should increase their price or not, we have to determine the elasticity of demand.
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. the absolute value of elasticity would be less than one
elasticity of demand = 15% / 10% = 1.5
Demand is elastic. if price is increased, the quantity demanded would fall more than the change in price and total revenue would fall.
This is a demographic profile of the target market. Marketers use this profile to segment the entire market into target markets. They use things like demographics (age, race, income, education) to identify which markets are more likely to buy their products.
This whole process is called market segmentation.
Answer:
to answer this, we have to first understand the meaning of normal and inferior goods. normal goods are goods which demand rises as consumers income rises while inferior goods are the opposite of normal goods because the demand for them increase as the consumers income drops. so when a consumers income drops his demand for inferior goods tends to rise while that or normal goods drop and vice versa
Commercials? idk look it up. (not on brainly lol)
Cash Equivalents are least risky investment that can be made. While they do have low returns compared to Stock and Bonds investing.
Hope this helps.
