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3 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]3 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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slega [8]

Answer: Straight line PPF, Opportunity cost is constant.

Explanation:

The PPF for Sweden is downward sloping straight line which depicts that the resources that are used in the production of these two goods are not specialized and the same set of resources is equally useful in producing both smartphones and tablets. Thus, Sweden's opportunity cost of producing more smartphones and fewer tablets should remain constant.

6 0

3 years ago

The term externalities refers to Select one: a. regulations imposed on a firm by government. b. a nation that is a trading partn

pogonyaev

Answer:

Option (c) is correct.

Explanation:

During an economic activity between the two parties, if the third party is affected (Positively or negatively) by this economic transaction then this is known as externality.

There are two types of externalities:

(i) Positive externality: When the third party is positively affected by an economic transaction between the two parties.

(ii) Negative externality: When the third party is negatively affected by an economic transaction between the two parties.

Now, suppose there is a steel manufacturing company for the consumers. But the people who lives near this company have to bear the cost of the pollution created by the company. This is a negative externality.

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3 years ago

Bulluck Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct

avanturin [10]

Answer:

Variable overhead efficiency variance= $544 favorable

Explanation:

Giving the following information:

Variable overhead 0.90 hours $ 3.40 per hour

Actual output 4,400 units

Actual direct labor-hours 3,800 hours

<u>To calculate the variable overhead efficiency variance, we need to use the following formula:</u>

<u></u>

Variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate

Variable overhead efficiency variance= (3,960 - 3,800)*3.4

Variable overhead efficiency variance= $544 favorable

Standard quantity= 4,400*0.9= 3,960

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3 years ago

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mr Goodwill [35]

The best answer for this question is: Marco can use the images option to include photographs and the video option to include footage of the fashion show.

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3 years ago

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Verizon [17]

Answer:

The correct answer is the option A: distressed inventory.

Explanation:

To begin with, in the field of business management and marketing as well, the term of "distressed inventory" refers to the situation where the company has for a long time its products that are not being sell and for that reason the inventory is getting stuck in the business without obtaining profits from that situation. Therefore that in order to address that problem the marketing department alongside with the head manager should start online liquidators to increase the number of sales of those products.

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3 years ago

Explain the importance of elasticity​

Explain the importance of elasticity