demand increased and supply decreased when price of insulin injection kits rose from $72 to $98 but the equilibrium quantity remained the same.
What is demand and supply explain?
The term supply refers to what proportion of a certain product, item, commodity, or service suppliers are willing to form available at a particular price. Demand refers to what proportion of that product, item, commodity, or service consumers are willing and ready to purchase at a particular price.
Why is supply and demand important?
Supply and demand have a crucial relationship because together they determine the prices and quantities of most goods and services available in a given market. consistent with the principles of a market economy, the connection between supply and demand balances out at a point in the future.
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If a foreign country's interest rate is similar to the uk rate, the forward rate premium or discount will be ________, meaning that the forward rate and spot rate will provide ________ forecasts.
If a foreign country's interest rate is similar to the UK rate, the forward rate premium or discount will be Close to zero, meaning that the forward rate and spot rate will provide exchange rate forecasts.
A forward rate is an interest rate that is relevant to a future financial transaction. To estimate the future interest rate that equals the overall return of a longer-term investment with a strategy of rolling over a shorter-term investment, forward rates are derived from the spot rate and adjusted for the cost of carrying.
The phrase may also refer to the interest rate on a future financial obligation, such as a loan payment.
The forward rate stated in an agreement is a contractual commitment that all parties must uphold.
Fast forward six months. If the market spot rate is lower for fresh six-month investment,
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The introduction of ebusiness brought about blank______, which occurs when a business sells directly to the customer online and cuts out the intermediary.
The introduction of e-business brought about blank disintermediation, which occurs when a business sells directly to the customer online and cuts out the intermediary.
Disintermediation
The process of eliminating the financial intermediary in a transaction is referred to as disintermediation. It may enable a consumer to purchase directly from a wholesaler rather than through an intermediary such as a store, or it may allow a business to order directly from a manufacturer rather than a distributor.
What exactly is e-business?
E-Business (electronic business) refers to any process carried out by a business organisation over a computer-mediated network. Any for-profit, governmental, or nonprofit entity is considered a business organisation. Production, customer, and internal or management-focused business processes are all part of their processes.
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Would the manager in a public company be actively involved in the decisions of the company
What‘s the main reason our culture has normalized credit cards over the past 60 years? what can we do to change the normalization of debt in the future?.
One have gradually raised the market for expensive goods, so everyone now require credit cards rather than cash since it's risky to carry around, say, $500 in cash when you're going to purchase a clothes.
By educating students about debt avoidance strategies and the genuine costs of being in so much debt, we can prevent the normalisation of debt in the future. When a person receives a credit card, it is a payment card that enables them to pay for products and services from a merchant depending on their accumulated debt. A credit card is a financial tool that allows you to borrow money from a bank in the form of a credit limit, which you may use for little and major purchases alike.
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Productivity should be a concern of every business organization. how should productivity be defined?
Productivity is a measure of business performance that contrasts the quantity of products and services generated (output) with the quantity of capital, labor, materials, energy, etc. required (input) to produce those goods and services. Moreover, it determines how efficiently work is done over a specific period of time.
Productivity is a major concern of every business organization as higher productivity levels in a workplace lead to a healthier working environment. Also, the increased productivity levels generate higher profits that boosts the success of the business organization in competitive markets.
Similarly, when productivity neglects to develop altogether, it limits expected gains in compensation, corporate benefits, and expectations for everyday comforts.
Thus, productivity is a measure of business performance that determines how efficiently it converts inputs (labor and capital) into outputs (goods or services).
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Firm a typically sees a learning percentage of 85 percent in its processes. firm b has a learning percentage of 80 percent. which firm has the faster learning rate?
Firm B has the faster learning rate.
Why is learning rate important?
In general, a high learning rate makes a model learn faster at the expense of a less than optimal final set of weights. A smaller learning rate allows the model to learn a more optimal or overall optimal set of weights, but can take a significant amount of time to train.
What is a good learning rate?
The range of values to consider for the learning rate is less than 1.0 and greater than 10^-6. The traditional default value for the learning rate is 0.1 or 0.01, which is a good starting point for your problem.
What happens if the learning rate is too high?
If the learning rate is set too low, the network weights are updated very little, and training progresses very slowly. However, setting the learning rate too high can lead to unwanted and erratic behavior of the loss function.
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integrated marketing communications represents the _________________ p in the four ps of a firm's marketing mix. pricing product promotion place partnering
Integrated marketing communications represents the Promotion in the four P's of a firm's marketing mix. pricing product promotion place partnering.
What are the 4 P's of marketing?
The four Ps are the key considerations that must be considered and wisely implemented to be able to successfully market a product or service. They are product, price, place, and promotion.The four Ps are also known as the marketing mix. They include a range of factors that are considered when marketing a product, including what consumers want, how the product or service meets or fails to meet those wants, how the product or service is perceived in the world, how it stands out from the competition, and how the company that produces it interacts with its customers.brainly.com/question/14988194
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If $350 is invested at 7ompounded (a) annually, (b) quarterly, (c) monthly, what is the amount after 5 years? how much interest is earned?
compound interest formula: A=P(1+i) ^n, P=initial investment, i=interest rate per period, n=number of periods, A=amount after n years.
For annual compounding:
P=350
i=7%/1=0.07
n=5*1=5
A=350(1+.07)^5
A=350(1.07)^5
A=350(1.4026)=$490.91
For quarterly compounding:
P=350
i=7%/4=0.0175
n=5*4=20
A=350(1+.0175)^20
A=350(1.0175)^20
A=350(1.1448)=$400.68
For monthly compounding:
P=350
i=7%/12=0.005833
n=5*12=60
A=350(1+.005833)^60
A=350(1.005833)^60
A=350(1.4176)=$496.16
What is Compound interest?Compound interest, also known as interest on principal and interest, is the practice of adding interest to the principal amount of a loan or deposit.
It occurs when interest is reinvested or added to the loaned capital rather than paid out, or when the borrower is required to pay it, so that interest is generated the next period on the principal amount plus any accumulated interest.
The interest per period multiplied by the number of periods in a year yields the simple annual interest rate. The nominal interest rate is another name for the basic annual interest rate.
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Justin's store has net working capital of $1,800, total assets of $12,600, and net fixed assets of $9,700. what is the value of the current liabilities?
The value of current liabilities will be $ 1,100.
Current asset = Total asset - Fixed asset
= $12,600 - $ 9,700
= $ 2,900
Net working capital = $ 1,800
Current Liabilities = Current Asset - Net working capital
= $ 2,900 - $ 1800
= $1,100
Current liabilities are the short-term financial obligations of a company that are due within one year or within a normal operating cycle. An operating cycle, also known as the cash conversion cycle, is the amount of time it takes for a business to purchase inventory and convert it to cash from sales. Money owed to suppliers in the form of accounts payable is an example of a current liability.
The current assets to current liabilities ratio are critical in determining a company's ability to pay its debts on time. Current liabilities are usually settled with current assets, which are assets that are depleted within a year.
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Houseboat dwellers get to enjoy the water every day. We compiled a list of the coolest houseboats around the world to help inspire a purchase, including the 1907 yankee ferry, with what on the back?.
Houseboat dwellers get to enjoy the water every day. We compiled a list of the coolest houseboats around the world to help inspire a purchase, including the 1907 Yankee ferry, with a chicken coop on the back.
A houseboat is a boat that has been built or altered primarily for use as a residence. Because they are frequently anchored, kept immobile at a certain location, and tied to land to provide utilities, some houseboats are not propelled. Many, nevertheless, are able to function using only their own power. These originally appeared not long after the initial European settlement.
But gentrified houseboats date at least as far back as 1888, when the Yesler Way cable car reached Leschi on Lake Washington and a string of opulent summer retreats—none of which are still standing—lined the shore from there north to Madison Park. From the beginning, they included floating slums of run-down shacks
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The question was incomplete. Check below the full question
Houseboat dwellers get to enjoy the water every day. We compiled a list of the coolest houseboats around the world to help inspire a purchase, including the 1907 Yankee Ferry, with what on the back?
1. a bar and stage
2. a muffin shop
3. a church
4. a chicken coop
A situation where the level of output, scale and average costs are all rising is called:__________
A situation where the level of output, scale and average costs are all rising is called Diseconomies of scale.
What are Diseconomies of scale ?
Diseconomies of scale happen when rising average unit costs accompany expanding output.Diseconomies of scale can be caused by internal operational variables or external, uncontrollable circumstances.Diseconomies of scale might be the result of technical problems with a manufacturing process, management problems inside an organisation, or resource limitations on productive inputs.Diseconomies of scale occur when a firm or business expands to the point where the price per unit rises. When a firm's economies of scale stop working, it happens. According to this theory, a firm experiences an increase in expenses as output increases rather than continuing to see reducing costs and rising output.To know more about Diseconomies of scale visit:
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Cash disbursements that have been recorded in the company's accounting records but are not yet recorded by the bank are called:________
Cash disbursements that have been recorded in the company's accounting records but are not yet recorded by the bank are called checks outstanding
What is Check outstanding?An outstanding check is one that has been written but hasn't been cashed or deposited by the intended recipient. A check's payee is the person or organization to whom it is written, whereas the payor is the body that issues the check. Another term for a check that is still in the bank's check-clearing cycle after being presented is an outstanding check.
The payor incurs a liability when a cheque is unpaid. It is important for the payor to make sure there is enough money in the account to cover the amount of the outstanding check until it is cashed, which might take weeks or even months.
Checks can be used as one of the payment methods for transactions. A check is a type of money order that gives the bank permission to move money from the payor's account to the payee's account. When the payee deposits the check, it contacts the payor's bank to request the funds, which then takes the money out of the payor's account and sends it to the payee's bank. The full amount requested is sent to the bank, which then deposits it into the payee's account.
Therefore, Check is one of the most commonly used financial instruments.
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What type of product/service management did Ray do?
The type of product/ service management that Ray did was new product development.
What did Ray do?From the given scenario, Ray is involved in the process of new product development because he was in charge of the development of a new line of seats.
This stage in product management is done by first engaging in market research as was done by the company that Ray hired. This allowed Ray to find out what new thing as needed in the market which in this case was new theatre seats.
In conclusion, the type of product/ service management that Ray does is to new product development.
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Question 3 suppose current assets for a firm are $50, long-term assets are $100, and total liabilities are $30. how much is the firm's total owners' equity?
The firm's total owners' equity is $120
How do we calculate total Equity?The formula to calculate total equity is Equity = Assets - Liabilities.
Given that,
Current assets = $50
long-term assets = $100,
liabilities = $30
Equity = Assets - Liabilities.
Total asset = current asset + long-term asset
Total asset = $50 + $100
Total asset = $150
Now,
Equity = Assets - Liabilities
Equity = $150 - $30
Equity = $120
The firm's total owners equity is $120
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B.what would be the average tax rate for a married couple with income of $90,000?
22% would be the average tax rate for a married couple with income of $90,000.
What is average tax rate?
The percentage of income a taxpayer pays in taxes is known as their average tax rate (also known as effective tax rate). The tax rate imposed on a taxpayer's final dollar of income, however, is known as their marginal tax rate. Average tax rates paid by taxpayers are typically substantially lower than marginal tax rates.
Therfore,
22% would be the average tax rate for a married couple with income of $90,000.
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What is the current yield of a 6-year Treasury note with a coupon rate of 6%, a face value of $100, and is currently trading at 100:20?
The annual return on an investment (interest or dividends) is calculated by dividing it by the security's current market value. Instead than focusing on a bond's face value, this metric looks at its current price. So,the current yield is 0.0598.
Current yield = Anual cash inflows/ Market price
= $100x6% /$100.20
= 0.0598
Therefore, Current yield is 0.0598
What is the Current yield?
The annual income from an investment, which includes dividend and interest payments, is divided by the security's current price to get a bond's current yield in fixed income investing.A bond's purchase price affects the current yield because the market price of a bond is subject to change. Investors can buy bonds at a discount or a premium.The current yield for stocks can also be determined by taking the dividends paid and dividing them by the stock's current market value.The annual return on an investment (interest or dividends) is calculated by dividing it by the security's current market value. Instead than focusing on a bond's face value, this metric looks at its current yield .To know more about Current yield Example visit:
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In which phase is 'storming', or a period of difficult or challenges where team members begin to get frustrated and impatient and question the viability of the project?
The storming stage is the most difficult and critical stage to pass through. It is a period marked by conflict and competition as individual personalities emerge.
What exactly is the Storming Stage?When things begin to calm down, the team begins to face conflict and competition. The storming stage is the most critical and difficult to navigate - a period of conflict and competitiveness during which individuals begin to assert themselves. Storming is about standing up for yourself, having an opinion, being passionate, and competitive. Because there are disagreements within the group, storming may cause tension and frustration. If you let these emotions fester, they will eventually turn into resentment and anger. Storming can lead to arguments, power struggles, gossip, and even sabotage if you're not careful. Take steps to manage your emotions and maintain healthy relationships to avoid all of this.Team performance may actually decrease in this stage because energy is put into unproductive activities. Members may disagree on team goals, and subgroups and cliques may form around strong personalities or areas of agreement. To get through this stage, members must work to overcome obstacles, to accept individual differences, and to work through conflicting ideas on team tasks and goals. Teams can get bogged down in this stage. Failure to address conflicts may result in long-term problems.To learn more about Storming Stage refer to
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Sasha owns a business which produces office furniture. She employs 100 workers in the operations department and 15 workers in the office. Sasha believe on a democratic leadership style. Sasha says that being a good manager is very important to the success of the business. Very few workers leaves each year. Sasha sees no need for any of her workers to join a trade union.
1) Outline Two roles/functions sasha undertakes as the manager of the
business.(4)
2) Explain two reasons why having good managers is important to this
business. (6)
3) Do you think Sasha is right to say that her workers do not need to join a trade union? Justify you answer. (6)
As per the given statement:
First:
Examining the company's budgets and finding the most profitable business.The promotion and employment of new managers for the organization.Second:
The business is running smoothly.They frequently collaborate with influential investors.Third:
In this case, I believe Sasha is correct.What is the function of such an operations department?An operations department guarantees that the production process is accomplished from beginning to end. These manufacturing methods must be consistent with the aims and functions of those other departments within a corporation.
1). Two roles/functions Sasha undertakes as the manager of the business.1. As the owner, one of Sasha's primary responsibilities is to analyze the company's budgets and determine whether or not it is profitable. Another task for Sasha is to oversee the promotion and hiring of new managers for the organization. Sasha must be certain that those directly below her are capable of completing their jobs appropriately.
2). The two reasons why having good managers is important to this business.2. Having strong managers is vital for a business for two reasons: (1) they are in responsible of ensuring that everything in the firm functions properly, and (2) they frequently work with major clients whose money the company will undoubtedly require.
3). I think Sasha is right to say that her workers do not need to join a trade union.3. In this circumstance, I believe Sasha is correct in stating that her employees do not need to join a trade union. Sasha's company is handled in a democratic manner, which means her employees have a lot of say in company decisions. Joining a union isn't essential when employees already have so much power within the organization.
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If the level of investment spending increases by $100 and the mpc in the economy is 0.8, then the cumulative spending increase after three rounds of spending is:_________
If the level of investment spending increases by $100 and the mpc in the economy is 0.8, then the cumulative spending increase after three rounds of spending is 244.
100+0.8(100)+0.8^2(100)=244.
A purchase made with the intention of generating income or capital growth is known as an investment. An asset's value increasing over time is referred to as appreciation. When a person invests in a good, they do not intend to use it as a source of immediate consumption, but rather as a tool for future wealth creation.
Investments are defined as assets bought or invested in with the goal of increasing wealth and setting aside funds from salary or capital gains. The main goal of an investment is to generate additional income or to make money on the investment over a certain amount of time.
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What assumption prevents some relevant information from being included in the financial statements because it cannot be quantified?
The assumption that prevents some relevant information from being included in the financial statements because it cannot be quantified is Money Measurement Assumption.
Money is a medium of trade; it lets people attain what they want to live. Bartering turned into one manner that humans exchanged goods for different items before money become created. Like gold and other precious metals, money has well worth because for the majority it represents something valuable.
Money is a medium of exchange; it allows human beings to obtain what they want to stay. Bartering become one way that humans exchanged items for different items earlier than money became created. Like gold and other valuable metals, cash has well worth it due to the fact for the general public it represents something precious.
In keeping with the U.S. branch of the Treasury, cash is constructed from 75% cotton and 25% linen inside the u.s... The front of the bills is printed with black, shade-changing, and steel ink. again, there is the simplest green ink.
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A monetary entity is assumed. A business's transactions are separate from those of its owners. It is impossible to create accurate financial statements if this presumption is false.
Financial statements are official records of a person, business, or other entity's financial position and activities. An easy-to-understand format is used to present pertinent financial data in a structured manner.
Financial statements are documents that describe a company's operations and financial performance. Government organizations, accounting firms, etc. frequently audit financial statements to ensure accuracy and for tax, financing, or investing purposes.
The records of a company's financial situation and activities over a specific time period are called financial statements. Financial statements display a company's financial health and performance. The income statement, balance sheet, and cash flow statement are the three primary financial statements.
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Ranstech sells its product for $200. marginal cost is a constant $160 per unit and fixed costs are $67,000. what is the breakeven quantity?
The Break-even point is the point where a firm neither gains nor losses. The breakdown quantity is 1725 units.
The break-even point is the number of additional units a company must sell to cover the cost of marketing programs and other types of investments, says Avery. If as a result of his investment he does not sell an amount equivalent, the company will suffer a loss and will not be able to recover its costs.
Break-even quantity = fixed cost / contribution per unit
Where contribution per unit = states per unit - variable cost per unit.
Now according to the problem, the marginal cost per unit is a constant $ 140 per unit. Go, it will converge to the variable cost per unit. ince, there is no change in the cost of production per additional unit, so the variable cost is the same as the marginal cost.
The fixed cost is 103500
Break-even quantity = fixed cost / contribution per unit
= 103500/200 -140
= 10350/ 60
= 1725 units
And, the break-even revenue ig = $(1725 x 200) = $345000.
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When selecting mand targets, the supervisor/bcba and therapist/rbt should make sure to ______.
'When selecting mand targets, the supervisor/bcba and therapist/RBT should make sure to select highly preferred and frequently used item or activities as teaching targets.
Registered Behavior Technician (RBT) is a paraprofessional certification in behavior analysis. RBT assists in the delivery of behavioral analysis services and practices under the direction and close supervision of her RBT Supervisor and/or RBT Requirements Coordinator who are responsible for all work performed by RBT.
Risk-Based Testing (RBT) is basically testing that is performed on a project according to its risk. A risk-based testing strategy uses risk to prioritize and highlight the right tests during test execution.
There may not be enough time to validate all types of functionality, so risk-based testing primarily focuses on testing those features that have the highest impact and are likely to fail .
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A person's cognitive biases are MOST likely to affect what?
Question 1 options:
how their brains filter information
whether they use email or instant messaging
how much money they make
what kind of jargon they use
Question 2 (1 point)
Which of these is a secondary emotion?
Question 2 options:
fear
jealousy
anger
sadness
Question 3 (1 point)
Every afternoon at one o'clock, the air conditioner in Emilio's office turns on to lower the temperature by five degrees. Emilio finds it way too cold and it distracts him from his work. In this case, which element is affecting his perception and emotions?
Question 3 options:
culture
personality
physical environment
social media
Question 4 (1 point)
Hotaru is from Japan, where it is very common for multiple generations to live together. She is not judgmental of a 25-year-old man who lives with his parents because of her what?
Question 4 options:
physical environment
personality
culture
age
Question 5 (1 point)
Danielle tends to roll her eyes when listening to her little sister tell a story. What step should she take to increase her emotional awareness to address this issue?
Question 5 options:
consider her own feelings
monitor her facial expressions
operate on trust
be more empathetic
In Psychology, framing effect can be defined as a cognitive bias wherein a person's choice from a group of options is primarily influenced by the positive or negative connotations pertaining to the options that are available.
What is cultural diversity?Cultural diversity can be defined as an existence of cultural variety and cultural differences due to the presence of several ethnic groups that are living within a society.
In this context, we can logically deduce that some examples of distinctive cultural characteristics that differentiate groups are:
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The _____________ responsibilities of business are to produce goods and sservices that society wants at a price that perpetuates the business and satisfies its obligations to investors.
The economic responsibilities of business are to produce goods and services that society wants at a price that perpetuates the business and satisfies its obligations to investors.
Social responsibility and ethics. Social responsibility is the ethical theory that individuals are responsible for their civic duties and that their actions should benefit society as a whole.
Ecocentrism sees the intrinsic (internal) value of all nature. He has a much broader worldview than anthropocentrism, which sees individuals and human beings as more valuable than other living things.
The process of analyzing all inputs and outputs throughout a product's life cycle from cradle to disposal to determine the overall environmental impact of its manufacture and use is known as life cycle analysis.
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A+stock+quote+indicates+a+stock+price+of+$60+and+a+dividend+yield+of+3%.+the+latest+quarterly+dividend+received+by+stock+investors+must+have+been+______+per+share.+multiple+choice+$0.55+$1.80+$1.25
0.55 would be the Dividend Yield as if calculated by
Dividend Yield= Price Per Share / Annual Dividends Per Share
What Is the Dividend Yield ?
A financial ratio (dividend/price) called the dividend yield, which is stated as a percentage, demonstrates how much a firm pays in dividends annually in relation to the price of its stock.
Price/Dividend, often known as the dividend payout ratio, is the counterpart of dividend yield.
The dividend yield is a projection of a stock investment's return on dividends alone. The yield will increase when the price of the stock decreases, assuming that the dividend is not increased or decreased. In the opposite scenario, it will decrease when the stock price increases. Because dividend yields fluctuate in relation to stock prices, they may appear disproportionately high for stocks that are depreciating rapidly.
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For consumers, pizza and hamburgers are substitutes. A rise in the price of a pizza causes _____ in the equilibrium price of a hamburger and _____ in the equilibrium quantity of hamburgers.
For consumers, pizza and hamburgers are substitutes. A rise in the price of a pizza causes a rise in the equilibrium price of a hamburger and an increase in the equilibrium quantity of hamburgers.
In microeconomics, two things are considered substitutes if customers may use them for the same purpose. Having more of one thing makes a buyer want less of the other good because they regard both goods as similar or equivalent.
When the price of commodity increases, the demand for its equivalent goods also rises. For example, tea and coffee are substitute commodities. When tea becomes more expensive, consumers begin switching to coffee instead of tea. Demand for a good's equivalent will rise when the price of that good rises, while demand will fall when the price of that good falls.
In the question, as the price of pizza rises, the demand for hamburgers also increases as they are substitute goods.
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What are the four broad areas of opportunity a company can pursue in the marketing strategy planning process?
The four broad areas of opportunity a company can pursue in the marketing strategy planning process are:
DiversificationProduct developmentMarket developmentMarket penetrationDiversification is a risk management approach that involves combining a wide range of investments in a portfolio. A diversified portfolio includes a variety of asset types and investment vehicles in an effort to limit exposure to any one asset or risk.
Product development, often known as new product management, refers to the process of conceptualizing, designing, developing, and selling newly developed or rebranded goods or services. Product development encompasses the complete life cycle of a product, from conception to commercial release.
Market development is a strategic measure done by a corporation to develop its present market rather than seek a new market. In order to enhance sales, the corporation seeks new buyers to market the product to a different section of consumers.
Market penetration measures how much a product or service is used by customers in relation to the total expected market for that product or service. Market penetration can also be used to design strategies for increasing the market share of a specific product or service.
Hence, The four broad areas of opportunity a company can pursue in the marketing strategy planning process are:
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After zappos. Com identified the needs of its target customer segment, what two marketing actions did the company take to fulfill the needs of its target customer?.
Two marketing actions the company takes to meet the needs of its target customers are offering fast shipping and free returns and offering a large stock of shoes.
Marketing strategy is a way for a company to achieve its goals, because the potential to sell a proposition is limited to the number of people who know about it.
Marketing Strategy Objectives
To improve the quality of coordination within the marketing team.To measure marketing results based on applicable performance standards.To provide a logical basis for any decision making.To improve the ability to adapt in case of changes in marketing.Marketing Strategy Function
Increase motivation to think far ahead.More effective and targeted marketing coordination.Can formulate company goals to be achieved.Supervision of marketing activities is more effective on work performance standards.You can learn more about Marketing strategy here brainly.com/question/15585962
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In its 1st month of business, brewed awakenings, inc. Purchased $1,000 of supplies of which it had paid $700 and owes the rest. At the end of the month, it had $400 of supplies available for use. What is the amount of supplies expense on the income statement?.
The balance for Supplies on the balance sheet is $800. It began with $700, spent $1,000, but still only has $400 worth of goods, therefore it spent $1300.
The $1300 is deducted from Supplies Expense (+E,-SE) and credited to Supplies (-A) in an adjustment entry for supplies expense. They are first counted as assets by debiting the cash account and crediting the account for office or retail goods.
The cost of supplies used during the accounting period is converted to an expense at the conclusion of the period, and an adjustment entry is produced. According to the matching principle, expenses should be recorded in the same reporting period as the associated income.
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Gianna (20) attends state university and is a qualifying student for the purpose of the american opportunity tax credit (aotc). Her parents will claim her as a dependent on their jointly-filed 2021 return. Their adjusted gross income is $135,000, and they paid $14,500 for gianna's tuition during the year. What is the maximum aotc gianna's parents may be eligible to receive?
The highest amount of money that AOTC Gianna parents may receive is $2500.
An educational tax credit known as the American Opportunity Tax Credit (AOTC) is available for qualified costs paid within the first four years of a student's higher education. Parents who file a combined tax return and have a dependent student may be entitled to receive this tax credit.
If your modified adjusted gross income, often known as your AGI, is $160,000 or less, you are eligible for the full tax benefit (in cases where parents file tax return jointly).
As a result, the following formula can be used to determine the maximum AOTC that Gianna's parents may receive:
• 100% of the first $2,000 spent on admissible educational costs, such as tuition and related costs for school supplies, etc.
PLUS
• 25 percent of the following $2,000 in admissible college costs.
The maximum AOTC that Gianna's parents may receive is as follows: = $ 2000 + 0.25 2000.
= $ 2000 + $ 500
= $ 2500
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