Answer:
Price elasticity of demand shows how much a 1% change in the price of a good or services changes the quantity demanded.
In the short run, a 10% increase in price decreases quantity demanded by 4%
PED short run = % change in price / % change in quantity = 4% / 10% = 0.4
PED long run = % change in price / % change in quantity = 7.5% / 10% = 0.75
Both PEDs are inelastic since they are less than 1, which means that an increase in price will result in a proportionally smaller decrease in the quantity demanded. But the PED in the long run is less inelastic, which means that an increase in price will decrease the quantity demanded more in the long than in the short run.
This happens because smokes consider that cigarettes are a basic necessity, so they are willing to purchase them even if the price increases. But as time passes (long run), more smokers will consider that it is not worth paying that much for cigarettes and will probably quit smoking or at least reduce the number of cigarettes they smoke per day.
Answer:
c. employment levels will decrease
Explanation:
As interest rates move up, the cost of borrowing becomes more expensive. This means that demand for lower-yield bonds will drop, causing their price to drop.
Answer:
Option C. Demographics
Explanation:
Demographics are a population section of a particular target market depending upon specific demographic information which differentiates this section from other section population. These demographics mostly includes location, family status, occupation, education level, etc.
Answer:
A) True
Explanation:
Calling population is the population of potential customers.Calling population can either be an infinite population or a finite population. To determine the difference between finite and infinite population, is their respective arrival rates as well as its effect in the system.
In an infinite population, its arrival rate is usually not affected by the number of customers already in the system. The system here, is an open system because customers arrive outside the system and leave the system only after the work has been completed. But in a finite population, its arrival rate is usually affected by the number of customers in the system. The system here, is a closed system and therefore, customers do not leave the system but only navigates from one server or queue to another.
