Answer:
A. Offer the product for free early on, and increase the price later.
Explanation:
Network effect occurs when the value of a product or service increases as more people use it.
For a company that believes its product will exhibit network effects and wants to get as many customers as possible to use the product,<u> it is best to offer the product for free to create a buzz around the product.</u>
This increases the chances of the people becoming aware of the product.
With time, <u>the company can increase the price of the product as people will be willing to pay for it because they consider it to be valuable.</u>
<h3>The unemployment created by introduction of automatic elevators would be considered as structural
</h3>
Explanation:
Structural unemployment is a longer-lasting type of unemployment that is induced by structural economic changes and aggravated by external influences like technology, rivalry, and government policy.
Structural unemployment will last for decades and typically needs to reverse a dramatic shift. Technology continues to intensify systemic unemployment, marginalize certain workers and make certain occupations redundant, such as manufacturing. Structural unemployment can be long-term and difficult to address as it needs either displacement or retraining.
Answer:
B. increases the demand for U.S. dollars.
Explanation:
Foreigners buying US goods and services will need the US dollar to complete the transactions. For them to acquire the US dollar, they will have to exchange their local currencies with the dollar. In other words, they will use their domestic currencies to buy the US dollar.
Foreign exchange is the term used to describe transactions involving buying and selling of currencies.
As foreigners buy US goods and services, they will cause the demand for the US dollar to rise. In the foreign exchange market, currencies are the commodities. If the US dollar is ordered more, its demand will increase. Like other goods, an increase in demand will lead to an increase in price. If foreigners demand more of US goods and services, the US dollar will appreciate in value.
<em><u>Market demand is the total quantity demanded across all consumers in a market for a given good. Aggregate demand is the total demand for all goods and services in an economy.</u></em>
Answer:
$5,450
Explanation:
Data provided in the question:
List price of the machinery = $88,000
Discount offered = 10%
Amount of discount = 10% of $88,000
= 0.1 × $88,000
= $8,800
Shipping paid = $400
Sales tax = $4,900
Useful life = 10 years
Residual value = $30,000
Now,
Total cost of the machine = List price - Discount + Shipping + sales tax
= $88,000 - $8,800 + $400 + $4,900
= $84,500
Annual depreciation using straight line method is given as:
= 
= 
= $5,450
