Answer:
Service products cannot generally be produced in advance or stored.
Services are typically variable, and in almost every service offering, the service cannot start until the customer arrives and actively participates.
Explanation:
Services have distinguishing characteristics that differentiate them from goods.
To start with, services cannot be produced in advance as production and consumption happen at the same time.
Also,the customer must be present and actively contributes to the delivery of the service, for instance, haircut cannot happen except the customer comes to the salon and obeys the instructions of the barber as they go along.
Besides,there is no physical substance in service unlike purchase of goods.
Answer:
2.33 ; demand for movies is elastic
Explanation:
The computation of the price elasticity of demand is presented below:
= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in price ÷ average of price)
where,
Change in quantity demanded is
= Q2 - Q1
= 30 - 15
= 15
And, an average of quantity demanded is
= (30 + 15) ÷ 2
= 22.50
Change in price would be
= P2 - P1
= $8 - $6
= $2
And, the average of price is
= ($8 + $6) ÷ 2
= 7
So, after solving this, the price elasticity of demand is 2.33
Since it is not given by which method we have to calculate it. So, we use the mid point formula.
Based on the above calculation, we concluded that the demand for movies is elastic
Answer:
The correct answer is option C.
Explanation:
US demand for Japanese products will create a supply of US dollars and demand for Japanese yen in the foreign exchange market.
This is because when the US consumers purchase Japanese products they need to pay in Japanese yen, so they will exchange US dollars for Japanese yen. Consequently, this will lead to an increase in the supply of US dollars and a demand for Japanese yen.
Answer:
The optimal order will be of 100 units
Explanation:
We will solve this using the EOQ (economic order quantity) formula:
D = annual demand 500 units
S= setup cost = ordering cost = 50.00 dollars
H= Holding Cost = 5.00 dollars
EOQ = 100
