If a decrease in the price of one good causes a decrease in demand for another good, the two goods are said to be substitutes.
A substitute is a good or service that can be used in place of another good or service to satisfy a consumer’s wants or needs. For example, when the price of one good decreases, demand for the other good decreases as well.
This is because the consumer can now purchase the cheaper good and use it as a substitute for the other good. In other words, the consumer would be willing to substitute the cheaper good for the more expensive one.
This type of change in demand is known as a substitution effect. The substitution effect is an economic theory that states that when the price of a good goes down, demand for its substitutes will also go down. This effect can be seen in markets for products such as cars, clothes, food, and other consumer goods.
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____ can be defined as the process and activities people engage in while searching for, selecting, purchasing, using, evaluating, and disposing of products and services to satisfy their needs and desires.
A. Consumer behavior
B. Producer behavior
C. Distribution behavior
D. Seller behavior
Consumer behavior can be defined as the process and activities people engage in while searching for, selecting, purchasing, using, evaluating, and disposing of products and services to satisfy their needs and desires.
Consumer behavior is the study of how people make decisions about the goods, services, or businesses they choose to use or patronise. To foresee how potential customers would respond to a new product or service, it is crucial to understand consumer behaviour. It involves several steps, including identifying a need or desire for a product, doing research, choosing a product, paying for it, and then assessing it after use.
Businesses may better understand their customers and create marketing and sales strategies by understanding consumer behaviour. Businesses can better satisfy the demands and preferences of their target market by customising their products, services, and marketing initiatives by knowing what influences consumer behavior.
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human specialization or division of labor contributes to a society's output in which of the following ways?
The answer is, continuous, repetitive flows of goods and services, resources and money are the ways in which human specialization or division of labor contributes to a society's output.
What does labor mean in economics using an example?labor economics is the study of the labor force as a component of the production process. All people who work for pay, whether as employees, employers, or self-employed individuals, as well as those who are jobless but looking for work, are considered to be part of the labor force.
What is an illustration of labor?Labor is the effort that people put forth in the creation of commodities and services. Both the engineer who built the bus that delivers you to school and the waiter who brings your food at a nearby restaurant are examples of labor resources.
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a salesperson who would like to get as many people as possible to view his open house may use which of the following sales promotions to induce sales traffic?
There are several sales promotions that a salesperson could use to attract more people to an open house like direct mail, Email marketing Word of mouth, etc
Direct mail: A salesperson could send out flyers, postcards, or brochures to potential buyers in the area to let them know about the open house.
Email marketing: An email campaign targeted to potential buyers could be a cost-effective way to reach a large number of people and invite them to the open house.
Social media: A salesperson could use social media platforms to promote the open house and reach a wider audience.
Online advertising: The salesperson could place ads on websites or search engines that are popular with home buyers
Word of mouth: Encouraging satisfied customers or friends and family members to spread the word about the open house can be an effective way to generate popularity and attract more people.
Local newspapers or real estate magazines: Placing an ad in a local newspaper or real estate magazine can reach potential buyers who are interested in the local housing market.
It's important to note that the best sales promotion strategy may vary depending on the target audience and the location of the open house.
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Chester Company earned $12,500 of cash revenue, paid $7,500 for cash expenses, and paid a $200 cash dividend to its owners. Which of the following statements is true?
The net cash inflow from operating activities was $5,000.
Cash revenue and cash expenses are operating activities. Paying dividends is a financing activity. $12,500 revenue − $7,500 expense = $5,000 cash inflow from operating activities.
Option D. The net cash inflow from operating activities is equal to cash revenue minus cash expenses. In this case, the company earned $12,500 in cash revenue and paid $7,500 in cash expenses, resulting in a net cash inflow from operating activities of $12,500 - $7,500 = $5,000.
Cash revenue and cash expenses are considered operating activities because they are directly related to the company's core operations and are necessary for the company to generate revenue. Paying dividends, on the other hand, is a financing activity because it is a use of cash that is not directly related to the company's operations and is intended to return value to the company's owners. Cash revenue and cash expenses are considered operating activities because they are directly related to the company's core operations and are necessary for the company to generate revenue. Cash revenue represents the inflow of cash from selling goods or services, while cash expenses represent the outflow of cash from operating the business, such as paying for raw materials, supplies, and employee salaries.
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Chester Company earned $12,500 of cash revenue, paid $7,500 for cash expenses, and paid a $200 cash dividend to its owners. Which of the following statements is true?
A. The net cash inflow from operating activities was $5,000.
B. Cash revenue and cash expenses are operating activities.
C. Paying dividends is a financing activity.
D. $12,500 revenue − $7,500 expense = $5,000 cash inflow from operating activities.
Suppose that in an economy the structural unemployment rate is 3.1 percent, the friction unemployment rate is 1.7 percent, and the unemployment rate is 8.1 percent. The natural unemployment rate is_____ percent and the cyclical unemployment rate is _____ percent a. 4.8;3.3
b. 6.7; 3.3
c.1,4; 3,3
d. 4,8; 12,9
The natural unemployment rate is 4.8 percent and the cyclical unemployment rate is 3.3 percent .
The lowest rate of unemployment brought on by real or voluntary economic factors is known as organic Or natural unemployment, or the natural rate of unemployment. The number of persons experiencing natural unemployment indicates those who are jobless as a result of the composition of the labour force, such as those who have supplanted by technology or those who lack the needed skills to find employment. It represents the total number of jobless persons as a result of the labour force's structure, including those who have been replaced by machines but who lack that requisite skills to find employment. Whereas The fraction of overall unemployed that is specifically caused by episodes of economic growth and decline is known as cyclical unemployment. Traditionally, joblessness surges during times of recession and lowers during boom period. This is done mainly to reduce cyclical unemployment during depressions.
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5. A manufacturing firm produces widgets and distributes them to five wholesalers at a fixed delivered price of $2.50 per unit. Sales forecasts indicate that monthly deliveries will be 2700, 2700, 9000, 4500 and 3600 widgets to wholesalers 1-5 respectively. The monthly production capacities are 4500, 9000 and 11,250 at plants 1, 2 and 3, respectively. The direct costs of producing each widget are $2 at plant 1, $1 at plant 2 and $1.80 at plant 3. The transport cost of shipping a widget from a plant to a wholesaler is given below.
Plant/wholesaler 1 2 3 4 5
Plant 1 0.05 0.07 0.11 0.15 0.16
Plant 2 0.08 0.06 0.10 0.12 0.15
Plant 3 0.10 0.09 0.09 0.09 0.16
Required:
A) Formulate an LP model for this production and distribution problem.
B) Find the Initial Basic Feasible Solution through VAM.
C) Test the optimality of VAM’s solution through MODI method.
LP model is the stand for Linear programming maximum profit or lowest cost is the mainly used on the linear variable. There are the basis components are decision variables, constraints, data and the objective function.
What is variables?
The term variable refers to the measure of the value on the assumption basis. The variable are the anything is the income, age, amount, unit and the other factors is involved.
The LP model can be written as:
Minimize Z = 2×1 + x2 + 1.8×3 + 0.05×11 + 0.07×12 + 0.11×13 + 0.15×14 + 0.16×15 + 0.08×21 + 0.06×22 + 0.1×23 + 0.12×24 + 0.15×25 + 0.1×31 + 0.09×32 + 0.09×33 + 0.09×34 + 0.16x35
Subject to:
4500 (Production constraint at plant 1) is x1
9000 (Production constraint at plant 2) is x2
11,250 (Production constraint at plant 3) is x3
x11 + x12 + x13 + x14 + x15 = 2700 (wholesaler 1)
x21 + x22 + x23 + x24 + x25 = 2700 (wholesaler 2)
x31 + x32 + x33 + x34 + x35 = 9000 (wholesaler 3)
x41 + x42 + x43 + x44 + x45 = 4500 (wholesaler 4)
x51 + x52 + x53 + x54 + x55 = 3600 (wholesaler 5)
x1, x2, x3, >= 0 (Non-negativity constraints)
Variable Addition Method Initial Basic Feasible Solution through VAM.
Solution is 0 to all variables. non-basic variable is the negative to the reduces the cost.MODI method (Modified Distribution Method) was the testing the optimality of VAM’s.
The inverse of the matrix of coefficients of the variables. It was reduced costs by multiplying the inverse matrix.The objective function coefficients of the non-basic variables.As a result, the significance of the LP model are the aforementioned.
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Developing a close personal relationship with a client or supplier is only a conflict of interest if others find out about the relationship.- True- False
False - Developing a close personal relationship with a client or supplier is only a conflict of interest if others find out about the relationship.
A conflict of interest is when a person has certain personal interests that may interfere with the interests you must have as someone connected to another person or entity, as in someone like your employer. A conflict of interest makes one suspicious and makes them doubt the intentions of the other person. This causes commotion followed by an uproar.
Examples of such are: nepotism, insider trading, self-dealing, etc
A sexual or close personal relation with a client or supplier is a conflict of interest as involves not only them but the working environments as well which may lead to some serious difficulties in the future followed by serious actions to subdue it.
In general, it may affect the others or may hinder the smooth working of the work environment, it may also affect in the process of decision making such as recruitment, selection, appointment, continuing appointment of staff conditions of service, promotion, etc.
therefore, its best advised to not have close personal relationship with a client or supplier
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Alternatives Profit if Demand is (Birr)
Low (0.1) Medium (0.5) High (0.4)
Arrange for sub contract (A1) 10,000 50,000 50,000
Over time (A2) -20,000 60,000 100,000
New facilities (A3) -150,000 20,000 20,000
A company could strive to grow its market share and size as an alternative to profit maximisation. By lowering prices and boosting sales, they can do this. The pursuit of growth may result in poorer earnings.
What is Alternative profit ?Profit refers to net income after deducting expenses from earnings, whereas revenue refers to income gained through business operations. Sales, fee-based income, and property-based income are just a few of the several ways that money might come in.
The money that remains after paying your business expenses is your profit. Gross profit, operating profit, and net profit are the three primary types of profit. The largest profit is gross. The amount left over after paying for the sold goods and services is displayed.
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