<span>C) Cash, debit $11,000; Katelyn's Capital, credit $11,000
</span>
A.exclusive it’s not an intense level of distribution
Answer:
A. That's the point where total revenue is maximized
Explanation:
Demand Curve is a downward sloping curve representing inverse relationship between price & quantity demanded.
Elasticity of Demand is the responsiveness of quantity demanded to price change. It can be measured geometrically on a demand curve point by :
Demand curve segment below the point / Demand curve segment above the point.
This way the elasticity keeps on decreasing as we move downwards on the demand curve [Ed=∞ to Ed >1 to Ed = 1 to Ed < 1 to Ed = 0] i.e [from perfectly elastic to elastic to unitary elastic to inelastic to perfectly inelastic demand].
If Demand is Elastic [Ed >1] : There is negative relationship between price and Total Revenue. This point is on the upper segment of demand curve as per geometric method, P- TR negative relationship implies that TR can be increased by decreasing Price.
If Demand is Inelastic [Ed <1] : There is positive relationship between price &total revenue. This point is on the lower segment of demand curve as per geometric method, P-TR positive relationship implies that TR can be increased by increasing price.
So: The best Total Revenue Maximising point is on the middle of demand curve where demand is unitary elastic [Ed=1] - as any other deviation from this point would create an incentive to change price to generate higher revenue.
Answer: (B) Reference group
Explanation:
A reference group is basically refers to the individual and the group that is specifically used for the comparison purpose. It is one of the type of group that share a common attitude, beliefs and the behavior for making the various types of decisions.
According to the given question, a shoe's company is one of the most popular music band as the products sales of the company significantly increase. Then, from the fans point of views the band is refers to the reference group.
Therefore, Option (B) is correct answer.
