Explanation:
a) It was due to capital flow.
b)Because of exchange of currencies that takes place between Asia and outside. This lead to decpreciation of Asian currencies and a lot of capital outflow. Unlike capital flow, trade flow does not happen over a short period of time it happens over a large period of time.
If a buyer has a critical or more important use of the product then the inelasticity of the demand increases, then it is the importance of the product affecting elasticity.
A product is considered inelastic if its demand remains static even if there is a significant price change. It is generally the basic necessity product that are considered as inelastic product. Inelastic demand of the product ensures the adequate supply of goods. In inelastic demand case the quantity demanded is same despite the change in price and the demand curve is graphed out as a vertical line. These goods have no substitutes ensuring the quantity demanded remains unaffected.
In case of fall in the price, the demand remains same, generating less revenue. On the other hand, if price hikes, the business earns significant profit.
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Debt management ratios measure how well a company is using debt versus equity position.
Answer:
D. they will be unable to earn higher-than-normal profits in the long run.
Explanation: A monopolistic competition is a form of imperfect Competition where many firms that are located within a give market are known to offer similar products to the markets that are not enough to qualify them as a perfect close Substitute (the Purchase of one of the close Substitute does not necessarily prevent the purchase of another). in this type of imperfect Competition the possibility of a barrier to entry or exit is generally low.