Answer:
The correct answer is option d.
Explanation:
The most effective model to understand the effect of change of a variable on other variable is by assuming other factors to be constant. This simplifies the model and helps in easily understanding the relationship between the two variables.
Though the assumption of other things being constant does not apply in the real world, it is still used as otherwise change in other factors would complicate the model. If several factors change it would be difficult to understand the relationship between variables.
Here, to study the effect of change in the price of grapes on the market for wine, it is necessary to assume other factors such as income, consumer preferences, etc to be constant.
Answer:
The correct answer is letter "C": propitious niche.
Explanation:
Companies develop strategies to set the steps necessary to accomplish an objective. One of those steps involves finding the firm's propitious niche which is no more than its target market. It determines what the company should do based on the best competitive advantage the firm will have in that market that will differentiate the company from competitors and will help the firm to establish in the market.
Answer:
B. Joint Stock Company
Explanation:
A few information provided in the question give good clues to the kind of business organisation being run. First, it is a business held in the names of its members, secondly, they are shareholders and thirdly, they hold personal liabilities in the business. This are features of a Joint Stock Company
A Joint Stock company is a business organisation is a vouluntary association of persons, where the capital is divided into transferable shares and these are the basis and condition of membership of the business organisation. The purpose of this organisation is primarily profit making.
A key feature of a Joint Stock Company is also featured in the question and this is the personal liability or liability limited to the member's share or ownership in the business organisation
Although this can be confused with the Joint Venture, a joint venture is simply an agreement betwen two organisations to come together to carry on business with pre-agreed rate of shareholding.
A Syndicate on the other hand is a group of companies, individuals or coroporations self-organised to carry out a specific business or pursue a shared interest.
Finally, a business trust is one in which there are investors and trustees. The investors receive certificates of beneficial interests which are transferable while the trustees adminster the business on behalf of the investors.
A purpose of government regulation in a mixed-market economy is to protect A) Property rights
Answer:
Increase by 5%.
Explanation:
Given that,
cross-price elasticity of demand between goods X and Y = 4
Percentage increase in consumption of good X = 20 %
cross-price elasticity of demand = Percentage change in quantity demanded for good X ÷ Percentage change in price of good Y
4 = 20 ÷ Percentage change in price of good Y
Percentage change in price of good Y = 20 ÷ 4
= 5%
Therefore, the price of good Y must be increase by 5% in order to increase the consumption of good X by 20 percent.
