following would most likely cause equilibrium quantity and price of x to rise? (a) a fall in income when the income elasticity of demand for x is positive Wrong. This will cause a drop in demand and thus a fall in quantity. (b) a fall in the price of complementary product y Correct. A fall in a complementary product will cause a rise in demand for that product “y” and thus a rise in demand of product “x” (see graph). (c) a fall in the price of substitute product Z Wrong. A fall in a substitute
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MARKETING PRESENTATION PROJECT Mercedes Canada Smart Car Building on its success in the European market over the past few years‚ Mercedes-Benz Canada has launched the Smart Car in Canada! Following a few modifications to meet Canadian safety and emission standards‚ Mercedes-Benz is currently selling the Smart in Ontario as a trial before a full North American launch the following year. The Smart is unique - almost revolutionary in the auto market. The people at Mercedes believe that the market
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Price and Quantity Adjustments for Australian Tourism and Hospitality Products. EXECUTIVE SUMMARY: This report is aimed to provide knowledge about the fundamental microeconomics which is demand and supply. Through the research of books and online information‚ the following report demonstrates the information about the change in supply and demand by price and non-price determinants. These would be illustrated through the analysis of three different scenarios. In addition‚ the report also
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Evaluate the view that‚ because price discrimination enables firms to make more profit‚ firms‚ but not consumers‚ benefit from price discrimination Price discrimination is where a firm changes different consumers different prices for the same service. Consumer Surplus is the difference between what the consumer is willing to pay and the price they actually have to pay. In all three degrees of price discrimination firms are able to make more profit and eliminate any excess capacity they
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raise prices when facing an inelastic demand curve but might or might not raise price when facing an elastic demand curve? Explain and justify your answers in detail. Elasticity and profit maximization behavior When facing an inelastic demand curve‚ a profit maximizing businessman would always raise price because increase in price will bring about increase in total revenue. On the other hand‚ when facing an elastic demand curve‚ he might or might not raise price because increase in price will
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difference between actual cost and standard cost. True False 8. A budget performance report that includes variances can have variances caused by both price differences and quantity differences. True False 9. A cost variance equals the sum of the quantity variance and the price variance. True False 10. When computing a price variance‚ the price is held constant. True False 11. Within the same budget performance report‚ it is impossible to have both favorable and unfavorable variances
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The High Cost of Low Prices Summary The activist Robert Greenwald produced a documentary named Wal-Mart: High Cost of Low Prices to enlighten Americans of the effects this major company has on society. In this documentary‚ Greenwald interviews former employees from different ranks. Greenwald also uses crime rate statistics to demonstrate the lack of surveillance in the parking lot of the store. The producer also interviews the Chinese factory workers who are exploited in China. He also points
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practical application of Price elasticity and Income elasticity of demand. Practical application of price elasticity of demand is as follows: • Production planning - It helps the producer to decide about the volume of production. If the demand for his products is inelastic‚ specific quantities can be produced while he has to produce different quantities if the demand is elastic. • Helps in fixing the prices of different goods - It helps a producer to fix his price of his product. If the demand
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Mercedes is described as the most courageous and “good” character in this book. This is true because of all she experienced. Some of the things she had to deal with were Edmond Dantes‚ his father‚ Fernand‚ and the life she knew with Edmond and then with Fernand. She also worried about what was best for her son Albert. She was so kind and caring for Edmond’s father showing her love and concern for others. Mercedes loved Edmond and his father more than anything else. She was so happy to see
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valuable even if the firm’s stock price fails to meet shareholder’s expectations? Employees have the option of buying stocks because stock options are in essence the right to buy a specified number of shares at a specified price known as the “strike price”‚ within a specified period of time. There are several ways an employee stock option could be valuable. The option pays off if‚ at option expiration‚ the stock price is higher than the option’s strike price. If at any point the company fails
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