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4 years ago

Explain the importance of elasticity

2 answers:

8 0

Elasticity of demand can help us decide which prices are suitable for the products we sell. If a price is inelastic even when the price goes up, it tells the business that they can increase the price if they want however if the price is elastic, it will change drastically when prices go up. This means businesses would have to find the equilibrium price where demand and supply meets in the middle.
hope this helps x

erma4kov [3.2K]4 years ago

5 0

Elasticity is important to pricing decisions because it helps us understand whether raising prices or lowering prices will enable us to achieve our pricing objectives.

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Suppose you bought a bond with an annual coupon of 7 percent one year ago for $1,010. The bond sells for $985 today. a. Assuming

butalik [34]

Answer:

(a) $45

(b) 4.45%

Explanation:

a) Dollar return:

= Selling Price - Buying Price + Coupon

= $985 - $1,010 + $70

= $45

b) Rate of return:

= Dollar return ÷ Buy price

= 45 ÷ 1,010

= 4.45%

c) Based on Fisher relation,

(1 + Nominal rate) = (1 + Real rate) × (1 + Inflation)

(1 + 4.45%) = (1 + Real rate) × (1 + 3%)

Therefore,

Real rate = 1.41%

7 0

3 years ago

Elevator pitch project

yanalaym [24]

Answer:

is this a question? maybe you could give more context.

7 0

3 years ago

According to empirical research, in countries where stockholders' rights are strong, firms issue ____ stock than in countries wh

gavmur [86]

According to empirical research, in countries where stockholders' rights are strong, firms issue More stock than in countries where stockholders' rights are weak. Researchers conclude that strong stockholders' rights reduce moral hazard in stock markets.

Explanation

A Moral hazard is said to have occurred when one party (i.e insured Party) increases its exposure to risk ,because some other party bears the cost of those Risk.It reflects the tendency of a person to take more risk as the consequence of the risk taken has to be beard by some other party

The moral hazard problem is less severe in bond markets than in stock markets. In addition, moral hazard arises in bond markets when firms issue bonds with high default risk.

So it is appropriate to say that , in countries where stockholders' rights are strong, firms issue More stock than in countries where stockholders' rights are weak. Researchers conclude that strong stockholders' rights reduce moral hazard in stock markets.

3 0

3 years ago

Why is it important for organizations to accurately estimate the demand for a good or service? A. To decrease the fixed costs o

Yuki888 [10]

Answer:

B. To plan production, marketing, and budgets

Explanation:

A company needs to know accurately the demand for a good or service because it has to determine what kind of customer it is and plan the marketing accordingly. Additionally, that information will be valuable in planning plan its production volume. And afterward, with that information in hands, knowing fixed and varied costs, marketing costs and others, plan the budget accordingly. Pricing, fixed costs, demand slope, and potential sales will be determined by other factors that can include but are not limited to demand estimation.

4 0

3 years ago

Competitive advantage is based:________.

vaieri [72.5K]

Answer:

b. on a higher cost structure.

Explanation:

competitive advantages are attributed to a variety

of factors including cost structure, branding, the

quality of product offerings, the distribution network,

intellectual property, and customer service.

8 0

2 years ago

Explain the importance of elasticity​

Explain the importance of elasticity