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Nonamiya [84]
3 years ago
6

You are a senior sales and marketing analyst for a major retailing firm in Idaho. The marketing manager just stopped by your off

ice with a very frustrated look on her face. She tells you that she is confused as to why, every time the company raises the sales price of its products, total revenue for the company declines.
Based on this information, which of the following explanations do you give her for why this situation occurs?

a. The demand for the company’s products is inelastic, so total revenue declines when prices are raised.
b. The demand for the company’s products is elastic, so total revenue declines when prices are raised.
c. The demand for the company’s products is elastic, so unit sales increase when prices are raised.
d. The demand for the company’s products is inelastic, so unit sales increase when pricesare raised.
e. The demand for the company’s products is elastic, so fixed costs increase when prices are raised
Business
1 answer:
Sonbull [250]3 years ago
7 0

Answer:

b. The demand for the company’s products is elastic, so total revenue declines when prices are raised.

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.

If prices are increased, the quantity demanded falls more than the percentage rise in price. As a result total revenue falls.

Demand is inelastic if a change in price has little or no effect on quantity demanded.

If demand is inelastic and prices are increased, the change in quantity demanded would be less than the change in price , as a result , total revenue would rise.

I hope my answer helps you

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If the expected sales volume for the current period is 25,000 units, the desired ending inventory is 700 units, and the beginnin
cluponka [151]

Answer:

Production= 25,250 units

Explanation:

Giving the following information:

Sales= 25,000 units

ending inventory= 700 units

beginning inventory= 450 units

To calculate the required production for the period, we need to use the following formula:

Production= sales + desired ending inventory - beginning inventory

Production= 25,000 + 700 - 450

Production= 25,250 units

6 0
3 years ago
The quantity of a good demanded in a given time period increases as the price falls, which is known as:_________
Illusion [34]

Answer:

B) The law of demand

Explanation:

The law of demand states that the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.

Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.

Ceteris paribus means all things being equal.

Says law says supply creates its own demand.

I hope my answer helps you

4 0
3 years ago
Wells Fargo & Company, headquartered in San Francisco, is one of the nation’s largest financial institutions. Suppose it rep
andreev551 [17]

Answer:

<u>EQUITY AND LIABILITIES</u>

<u>EQUITY</u>

Retained earnings                    $ 41,563

Preferred stock                          $ 8,485

Common stock - Issued             $ 8,743

Treasury stock                           $ 2,450

Share Premium                        $ 52,878

Total Equity                                $114,119

Explanation:

The the stockholders’ equity section of the balance sheet shows the amount of capital invested by the shareholders in the business as well as the reserves that have been allocated to them.

<u />

8 0
3 years ago
The demand for subassembly S is 100 units in week 7. Each unit of S requires 1 unit of T and 2 units of U. Each unit of T requir
Nady [450]

Answer

The answer and procedures of the exercise are attached in the following image.

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

3 0
3 years ago
What problems could develop if the us became too dependent on other nations for goods and services
xeze [42]

Answer:

TRADE DEFICIT

FOREIGN CURRENCY RESERVE DEPLETION

LOCAL CURRENCY DEVALUATION

RECESSION

POTENTIAL UNEMPLOYMENT

Explanation:

The problem that could develop if the U.S. became too dependent on other nations for goods and services are:

1. Trade deficit because when a country imports more than it exports it runs a trade deficit.

2. Foreign Currency Reserve Depletion: If the U.S. has to import so much from other countries, it will need to increase its foreign reserve because that is how it will pay for such imports. Otherwise the foreign reserve will be hugely depleted

3. Local Currency Devaluation. Reliance on exports can devalue the worth of the local currency because the demand of the foreign currency will be high in relation to local currency and people will be willing to pay more to get foreign currency, which will devalue the local currency

4. Recession: If the United States is reliant on OPEC countries for Oil and an embargo is placed on oil export from those, the U.S. will suffer a recession.

5. Potential Unemployment: Imports of finished goods will cripple local industries who will be forced to compete with the international firms whose goods and services are being imported; and those employed in such industries might loose their jobs, if the small local enterprises are unable to survive such competition.

8 0
3 years ago
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