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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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The long-time CEO of a large paper company is retiring. The members of the board want to make sure that the new person they hire
Elanso [62]

Answer:

The CEO needs a clear and broad vision of the companies future and where he's gonna take it in a couple years. The CEO needs good social skills, being able to communicate with potential partners, investors, etc. The CEO needs to be able to motivate himself, motivate his team, and in general just have the ability to keep everyone motivated to continue working towards the companies goals. The CEO needs to be able to adapt relatively quickly, he needs to have the ability to understand the industry quickly, and make sure everyone adapts to the companies changes as well. The CEO also needs trust, he needs to make sure future partners, will trust him, investors trust him, employees trust him, everyone needs to have trust in the CEO.

Explanation:

4 0
3 years ago
On a coordinate plane, a curved line with a minimum value of (negative 1, negative 2), crosses the x-axis at (negative 2, 0) and
Scrat [10]

Answer: (-2,0), (0,0) or A and B on E2020

Explanation: The line chart shows the X-intercepts as (-2,0) and (0,0).

Also: Just took quiz and got 100%

7 0
3 years ago
Read 2 more answers
A restaurant manager has estimated that the price elasticity of demand for meals is 2. If the restaurant increases menu prices b
aniked [119]

Answer:  10%, fall

Explanation:

Elasticity of demand = % change in Quantity demanded/ % change in price

therefore  % change in Quantity demanded

=2 x 5= 10%

ii) fall , this is due to the decrease in demand which is more than the increase in price.

7 0
4 years ago
If the reserve ratio is 5 percent, banks do not hold excess reserves, and people do not hold currency, then when the Fed sells $
Keith_Richards [23]

The correct option is: decrease by $20 million and the money supply eventually decreases by $400 million.; if the reserve ratio is 5 percent, banks do not hold excess reserves.

<h3>Define the term reserve ratio?</h3>

The amount of reservable liabilities than commercial reserve requirement onto rather than lend off and invest is known as the reserve ratio.

The central bank of the nation, in this case the Federal Reserve in the United States, sets this criterion. It is often referred to as the ratio of cash reserves.

The amount of money that banks are required to hold with the Reserve Bank of India as a percentage of their Net Time and Demand Liabilities is known as the Cash Reserve Ratio (NDTL).

The goal of CRR is to guarantee the banks' solvency and liquidity.

Thus, if a reserve ratio is 5%, banks do not store extra reserves, and people must not hold currency, the money supply will eventually fall by $400 million and by $20 million.

To know more about the reserve ratio, here

brainly.com/question/13758092

#SPJ4

3 0
1 year ago
Wims, Inc., has current assets of $5,000, net fixed assets of $23,300, current liabilities of $4,450, and long-term debt of $11,
Novay_Z [31]

Answer:

a). $12,850  b.) 550

Explanation:

a). Shareholder equity

The shareholder equity consists of the shareholder capital contributions plus the retained earnings. calculating the shareholder's equity is through the formula shareholder equity = total assets -total liabilities

In this case,

Total assets = $5,000,+ $23,300= $28,300

Total liabilities = $4,450 + $11,000 + $15,450

Shareholder equity = $28,300 -$15,450 = $12,850

b). Net working capital

Net working capital is the difference between current assets and current liabilities. i.e., net working capital is current assets - current liabilities

current asset = $5000

Current liabilities = $ 4,450

Net working capital; = $5,000 - $4,450= $550

5 0
4 years ago
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