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Travka [436]
4 years ago
10

Explain the importance of elasticity​

Business
2 answers:
Georgia [21]4 years ago
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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Answer:

The primary sign of mumps is swollen salivary glands that cause the cheeks to puff out. Other signs and symptoms may include:

Pain in the swollen salivary glands on one or both sides of your face

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3 0
3 years ago
Read 2 more answers
StayWell Health Insurance is offering a plan with a monthly premium of $250, a
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The most Sheldon should pay in one calendar year is $9,750

Deductible is a term used in Insurance. The amount of deducible refrain the Insurer from liability until a certain level of liability is reached.

Given that :

Premium = $250

Deductible = $3500

Maximum out-of-pocket expenses = $6000.

Then, the maximum he should pay in one calendar year is:

= $250 + $3,500 + $6,000

= $9,750

Therefore, the maximum he should pay in one calendar year is $9,750

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4 0
2 years ago
Switzerland exports watches to Russia. Watches are relatively capital intensive in their production process. With trade, the pri
In-s [12.5K]

Answer:

A) we would expect the price of capital to rise by more than 10 percent in Switzerland.

Explanation:

In foreign trade, the magnification principle is part of the Stolper-Samuelson theorem and it states that the price of a factor that is used intensively in the production of a good or service will change in a larger proportion than the price of the good or service produced. In other words, the change in the price of capital will increase by a larger proportion than the goods produced using it. So if the price of watches increases by 10%, then the price of capital will increase by more than 10%

7 0
3 years ago
Two major variables in choosing the structure and design of an organization are the opportunities and need for ________.
Sphinxa [80]

Answer:

globalization and localization.

Explanation:

Globalization can be defined as the strategic process which involves the integration of various markets across the world to form a large global marketplace. Basically, globalization makes it possible for various organizations to produce goods and services that is used by consumers across the world.

Comparative advantage in economics is the ability of an individual or country to produce a specific good or service at a lower opportunity cost better than another individual or country.

The comparative advantage gives a country a stronger sales margin than their competitors as they are able to sell their specific products or render their peculiar services at a lower opportunity cost.

Also, localization (local responsiveness) refers to the degree of requirements and conditions to which a manufacturing firm should significantly adjust their products and methods of production in a particular country to. Thus, a firm that is facing both strong cost pressures and strong pressures for localization should ensure that it adopts a global standardization strategy.

Hence, two major variables in choosing the structure and design of an organization are the opportunities and need for globalization and localization because the opportunities that abound in the market would determine the level of revenues (cash-inflows) that the organization can generate.

3 0
3 years ago
Routsong Corporation had the following sales and production for the past four years:
andreyandreev [35.5K]

Answer:

B. Because of the changes in production levels, under variable costing the unit product cost will change each year

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The following statements is not correct : Because of the changes in production levels, under variable costing the unit product cost will change each year.

6 0
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