Answer:
The manger did not make a mistake
To determine the effect that an increase in price would have on revenue, we have to determine the price elasticity of demand.
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price
Price elasticity of demand = percentage in quantity demanded / percentage change in price
4% / 5% = 0.8
The elasticity of demand is less than 1, this means that demand is inelastic
When demand is inelastic, if price is increased, the fall in quantity demanded would be less than the increase in price. As a result, if price is increased total revenue would fall.
Based on the manger's calculation, demand is inelastic, so she was not wrong in increasing price.
Explanation:
Answer:
Place Marketing
Explanation:
Based on the scenario being described it can be said that the marketing strategy that is being illustrated is known as Place Marketing. This is a business strategy that focuses on mainly attracting different investors, visitors (tourists) or talent to the company/business. This is term brings in potential customers that increase revenue for the businsess.
Answer:
5.59%
Explanation:
$1,000 bonds carrying a 4% coupon rate, semiannual coupon $20, matures in 20 years
if you purchase the bonds at $715, the nominal annual rate of return = coupon payments / bond price = ($20 + $20) / $715 = $40 / $715 = 5.59%
The nominal annual rate of return is calculated by dividing the revenue generated by an investment by the cost of the investment.
Answer:
An increase in the demand for leather will most likely cause an increase in the demand for beef in the short run.
Explanation:
We can establish from the question that the two products are jointly produced. The two products are simply - Leather and Beef.
There's thus a direct relationship between the production of one and the other. That is, an increase in the production of leather causes an equal increase in the production of beef.
Having considered that, it is important to underscore the general human behaviors to issues on Demand. A rational individual will buy more of a product if the price is low. The more the demand, the more the increase in production.
For leather and beef, there is a critical factor that necessitate there joint production. This is that the byproducts from the production of one, say, Beef, will form an input in the production of the other. This relationship further lends credence to our foregoing assertion that the both products share direct relationship. Using the byproducts obtained from the production of one as an input will not increase the economies of scale of the other, it'll lead to an equal increase in the production levels.
Thus, an increase in the demand for leather signals an increase in the production of leather. Hence, with increase in production of leather, there's an equal increase in the production of beef with direct consequence on product demand, while taking advantage of the economies of scale derived from, and the competitive pricing.
Answer:
Importer.
Explanation:
An importer is an individual or entity that brings in products from foreign countries for sale domestically. Importers buy products that are produced in other countries. To the other country this is an export.
Roberto's father and uncle started a company that buys bauxite, copper, and other minerals from Chile, and brings them into the U.S. So the company is involved in importing activity.
Roberto brokers the trades with the mines in Chile.
