Every year Christmas tree vendors bring tens of thousands of trees from the forests of New England to New York City and Boston.
During the last 2 years, the market has been competitive; as a result, price has fallen by 10 percent. If the price elasticity of demand was -1.3, vendors would lose revenues altogether as a result of a price decline. A. True
B. False
Since the price elasticity of demand is -1.3, it is considered elastic. That means that a 10% decrease in the price will result in a 13% increase in total quantity sold.
E.g. original price = $100, quantity demanded = 100 trees, total revenue = $10,000
price decreases by 10% to $90, but the quantity demanded increased by 13% to 113 trees, total revenue = $10,170
One advantage of training is that it can enhance employees' skillset within the organisation overall. A disadvantage is that training can be costly especially if employees leave taking their skills elsewhere.
what will happen to the output is that it will decrease due to less consumers and less money to find production, price levels drop(deflation) so will unemployment increase in the shelter on due to no jobs or money to create
