Answer:
the product could not sell
the product could be poorly received/rated
the product could put your company into debt
if the product got bad reviews that looks bad for your business
Explanation:
Answer:
See the explanation below
Explanation:
Significance of price elasticity of producers:
- useful in pricing decisions
- when demand is elastic, firms have to reduce their price to earn more revenue
- when demand is inelastic firms need to raise prices to earn more revenue
Answer:
2. (i) demand-side; (ii) both; (iii) supply-side; (iv) supply-side; (v) both
Explanation:
a. $1,000 per person tax reduction ⇒ focus on aggregate demand (more money for consumers to spend)
b. a 5% reduction in all tax rates ⇒ focus on both aggregate demand and supply (more money for consumers and suppliers)
c. Pell Grants, which are government subsidies for college education ⇒ focus on aggregate supply (more money for suppliers of college education)
d. government-sponsored prizes for new scientific discoveries ⇒ focus on aggregate supply (more money for suppliers of new scientific discoveries)
e. an increase in unemployment compensation ⇒ focus on both aggregate demand and supply (more money for consumers resulting in higher prices and lower output)
Answer:
C. Negative; Positive
Explanation:
If soda and sandwiches are complementary goods, then the cross price elasticity between them is negative. Negative cross price elasticity indicates that an increase in the price of soda would result in a fall in the quantity demand for sandwiches. On the other hand, a decrease in the price of soda would result in an increase in the quantity demanded for sandwiches.
If yogurt and sandwiches are substitute goods which means that yogart can be used in place of sandwiches or sandwiches can be used in place of yogurt. The cross price elasticity between the substitute goods is positive. Positive cross price elasticity indicates that an increase in the price of yogurt would result in an increase in the quantity demanded for sandwiches. On the other hand, a decrease in the price of yogurt would result in a fall in the quantity demanded for sandwiches.
