With prestige goods and services, a higher price may, but not always, result in a higher sales volume.
<h3>What do economists mean by prestige goods?</h3>
Numerous products and services have prestige value, elevating the standing of their owners or users. Such items are referred to be prestige (or status, or positional) goods. These prestige products include things like jewelry, designer apparel, expensive homes and vehicles, and lavish entertainment.
<h3>Why is the demand curve for prestige items different?</h3>
Prestige goods may actually see an increase in demand as a result of price increases since customers perceive them to be more value. The demand curve slopes upward in certain circumstances.
To know more bout Prestige products visit:
brainly.com/question/6374886
#SPJ4
Answer:
$1,295.03
Explanation:
To find the answer, we will use the present value of an annuity formula:
PV = A ( 1 - (1 + i)^-n) / i
Where:
- PV = Present Value of the investment (in this case, the value of the loan)
- A = Value of the Annuity (which will be our incognita)
- i = interest rate
- n = number of compounding periods
Now, we convert the 7.9 APR to a monthly rate. The result is a 0.6% monthly rate.
Finally, we plug the amounts into the formula, and solve:
75,500 = A (1 - (1 + 0.006)^-72) / 0.006
75,500 = A (58.3)
75,500 / 58.3 = A
1,295.03 = A
Thus, the monthly payments of the car loan will be $1,295.03 each month.
Answer:
$380 million
Explanation:
Given that,
Deposits = $120 million
Required reserve ratio = 20 percent
Total bank reserves = $100 million
Required reserve ratio refers to the portion of deposits that is kept with the reserve bank.
Required reserves:
= Deposits × Required reserve ratio
= $120 million × 0.2
= $24 million
Excess reserves:
= Total reserves - Required reserves
= $100 - $24
= $76
So, there is a excess reserves in this economy.
Money multiplier = 1/Required reserve ratio
= 1/0.2
= 5
Therefore, the total money creation potential of this deposit is as follows:
= Excess reserves × Money multiplier
= $76 × 5
= $380 million
Hence, an increase in deposit creation by $380 million.
Flat money, commodity money, the gold standard and representative money is the money that would have the least value if people lost confidence in the government. Flat money is the currency that the government has declared as legal tender but it is not backed by a physical commodity. Representative money is any money that its face value is greater than its actual value. Commodity money is money whose value comes from the commodity in which it is made of. The gold standard is economic unit of account which is based on the fied amount of gold.
Answer:
(B) The superstores’ heavy advertising of their low prices has forced prices down throughout the retail market for office supplies.
Explanation:
If the superstores have the financial means to produce heavy advertising of their low prices, this advertisements will reach a wide group of customers, who will now have lower price expectations for the market of office supplies, whether these are offered by large superstores, or by small retail stores.
Because small retailers likely do not have the economies of scale to allow for prices as low as the large superstores, they have a high probability of being taken out of business.
