Answer:
A price increase of 1% will reduce quantity demanded by 4%
Explanation:
If the price elasticity is 4 then, this demand is highly responsive to changes in price.
So it will decrease by more than the price increase.
we must remember that the price-elasticity is determinate like:
↓QD / ΔP = price-elasticity
if the cofficient is 4 then a 1% increase in price:
↓QD / 0.01 = 4
↓QD = 0.04
Quantity demanded will decrease by 4%
Answer:
contractual vertical marketing system
Explanation:
In the supply chain management system there is this Contractual Vertical Marketing System under which there is this vertical relationship of marketing in between two positions of the supply chain.
Here also the Walmart is the one which shall supply goods at the last to consumers and that the company P&G shall supply goods to Walmart. This is the chain. Now this is a vertical chain, as from producer to seller to consumer.
And since it is a marketing chain with contractual clauses which include all the penalties also.
The correct answer to this open question is the following.
The statement, if true, that would explain the analysts' predictions would be "the Producer Price Index has been steadily increasing over the past few months."
That is what would have been the factor that supports the forecast. Although inflation has been constant at low levels, what changed was the Producer Price Index that is moving up. This factor could modify the results despite inflation is stable at this moment. When inflation is high, it directly affects the price of goods and the consumer.
Answer:
1 EUR = 120 JPY
Explanation:
As the purchasing power parity theory, the exchange rate of currency 1 to currency 2 = Cost of good in currency 1
/ cost of same valued item in currency 2
In this case, a Lexus LS400 and a Mercedes C300 are considered to be of equivalent value, then the exchange rate between the yen and the euro
= price of Lexus in Tokyo/ price of Mercedes in Stuttgart
= 6,000,000 JPY/ 50,000 EUR
= 120 JPY/EUR
