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Yuri [45]
3 years ago
13

When XYZ firm entered the market for good A two years​ back, it kept the price of its product low to attract customers away from

its leading competitor. The firm has now established itself and has a market share of 20 percent. The management of XYZ is planning to increase price of A from the current​ $6 per unit to​ $7 per unit. Timothy​ Walters, the marketing​ head, however, feels this is not a good idea because it will reduce quantity demanded drastically from the current​ 1,200 units to 900 units. His colleague and the head of the sales​ department, Jake​ Mayers, feels that the quantity demanded would only decline by 250 units. According to​ Jake, the firm can afford to increase the price because even after the price increase they would still have significant market share
Business
1 answer:
Sonja [21]3 years ago
4 0

Answer:

B) The demand for good A is elastic.

Explanation:

Both Timothy and Jake believe that the demand is elastic, Timothy believes the PED = 1.75, while Jake believes the PED = 1.46. The difference is that Timothy believes the demand is more elastic.

Option A is not correct because Timothy believes total revenue will fall while Jake believes it will increase.

Option C is not correct because both believe that their market share will decrease.  

Option D is not correct because both Timothy and Jake are arguing about higher prices, not lower prices.

Option E is not correct because an increase inn the price of a good does not shift the demand curve, it moves the equilibrium point within the given demand and supply curves.

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luda_lava [24]

Answer:

true

Explanation:

For example, if a bank account has a $100 minimum balance requirement, you want to make sure that you don't let your balance fall to $99.99 or less.

4 0
3 years ago
Through coordinating partnerships with dedicated suppliers, Warby Parker have ensured quality, built a lean manufacturing operat
Sedbober [7]

Answer:

B. Profit / Economic

Explanation:

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The quality product is a reason why the customer prefer the company's product which helps the company in making profit. So the profit / economic factor is the right option.

6 0
3 years ago
Which of the following is NOT considered personal information?
Anastasy [175]
Can you reply to this with the options so i can answer ^^
5 0
3 years ago
When Prestige Appliances Inc. releases new appliances, it often uses price skimming and sets the initial price at the highest po
sashaice [31]

Answer:

skimming is more flexible than penetration

Explanation:

  • When Prestige uses price skimming with highest initial possible price because price skimming is more flexible than penetration pricing
  • As Penetrating pricing and price skimming are the marketing strategies that companies typically employ when launching new products or services. Both approaches work for businesses.
  • Penetration pricing relies on lower upfront prices to attract customers, while skimming is the use of higher upfront prices to maximize short-term profits from most avid and willing customers.
6 0
2 years ago
aveWhich of the following is a tax? I. A 1 percent special sales tax for funding local road construction. II. A fee paid to the
djverab [1.8K]

Answer:

III. An income tax imposed by Philadelphia on persons working within the city limits.

Explanation:

A tax is the monetary obligation from a taxperson in favor of the federal, state, or municipal governement without a concrete return or destination.

on the second situation, the fee is colected based on the licesne there is a return which is, the abilitation of the attorney licence.

the first and fourth the imposition comes with an explicit destination; the road construction or the water system. Therefore are not taxes.

3 0
3 years ago
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