Answer:
inversely related to the price elasticity of demand for item in question.
Explanation:
Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services. Thus, it refers to the amount of money a customer or consumer buying goods and services are willing to pay for the goods and services being offered. Also, the price of goods and services are primarily being set by the seller or service provider.
Generally, all businesses and entrepreneurship go into the business of buying and selling or providing services to service takers (consumers) for the sole purpose of making profit and maximizing the profits over time.
At the profit-maximizing level of output, the amount by which a business firm can mark up price is inversely related or proportional to the price elasticity of demand for the item (product) in question. Thus, the amount by which a business firm can mark up price increases as the price elasticity of demand for a item (product) decreases and vice-versa.
A price elasticity of demand can be defined as a measure of the responsiveness of the quantity of a product demanded with respect to a change in price of the product, all things being equal.
Also, a mark-up price is simply the difference between the cost price of a good (product) or service and its selling price.
Non-organic food is cheaper, and often has brand names, which appeal to the consumer more than an organic brand does.
<span>The term "monetary policy" refers to what the Federal Reserve, the nation's central bank, does to influence the amount of money and credit in the U.S. economy. What happens to money and credit affects interest rates (the cost of credit) and the performance of the U.S. economy.</span>
Answer:
consumers
Explanation:
The consumers of any given market are the ones that finally pay the increase of prices driven by inflation.
Inflation means that there is an increase in the prices of goods and services per year. This increase affects all the actors in a given economy but in the bottom-line consumers are the ones that pay these increment in prices.