You grow lots of different herbs and spices on your certified organic farm, and you can think of many different people and businesses who might be interested in purchasing them. Some of your prospect ideas are obvious, whereas others are a bit of a stretch. What's the best way to segment these prospects so that you can focus on those with the greatest potential first

Answers

Answer 1

Question:

You grow lots of different herbs and spices on your certified organic farm, and you can think of many different people and businesses who might be interested in purchasing them. Some of your prospect ideas are obvious, whereas others are a bit of a stretch. What's the best way to segment these prospects so that you can focus on those with the greatest potential first

Options:

A. sort by personal characteristics, such as age and income level.

B. sort by customer types, such as commercial and reseller.

C. sort by customer types, such as restaurants, grocery stores, and food product manufacturers.

D. sort by end-use application, such as food preparation versus food product production

Answer:

The best choice is C) sort by customer types, such as restaurants, grocery stores, and food product manufacturers.

Explanation:

The above choice is called:

Firmographic Segmentation: This refers to focusing ones marketing efforts on Business to Business relationships. This is more beneficial because

businesses have set standards, they are easy to relate withthey already have a hub of numerous customers waiting to buy from themthere is an assurance of consistent demand for the herbs

Cheers

Answer 2

The best way to segment these prospects is : Sort by customer types such as restaurants, grocery stores, and food product manufacturers.

What is Firmographic Segmentation?

Firmographic Segmentation is a term, given to a situation where a company lay more emphasis on Business to Business marketing relationships.

The importance of firmographic segmentation are :

It enables businesses have set standards.Businesses are easy to relate with.There is an assurance of consistent demand.

Hence, the best way to segment these prospects is to sort by customer types such as restaurants, grocery stores, and food product manufacturers.

Learn more about Firmographic Segmentation here : https://brainly.com/question/24882209


Related Questions

Item X is a standard item stocked in a company's inventory of component parts. Each year the firm, on a random basis, uses about 1,700 of item X, which costs $25 each. Storage costs, which include insurance and cost of capital, amount to $8 per unit of average inventory. Every time an order is placed for more of item X, it costs $26. a. Whenever item X is ordered, what should the order size be

Answers

Answer:

EOQ = 105.11898 rounded off to 105 units per order

Explanation:

To calculate the optimum order size when each order is placed, we need to find the EOQ or Economic order quantity. It is the quantity that should be ordered each time to minimize the inventory related costs. The formula to calculate EOQ is attached. The EOQ is calculated as follows.

EOQ = √[(2 * 1700 * 26) / 8]

EOQ = 105.11898 rounded off to 105 units

Nordstrom, Inc. operates department stores in numerous states. Suppose selected financial statement data (in millions) for 2020 are presented below. End of Year Beginning of Year Cash and cash equivalents $ 1,285 $ 122 Accounts receivable (net) 3,500 3,300 Inventory 1,500 1,500 Other current assets 555 515 Total current assets $6,840 $5,437 Total current liabilities $3,420 $2,722 For the year, net credit sales were $13,940 million, cost of goods sold was $9,000 million, and net cash provided by operating activities was $1,254 million. Compute the current ratio, accounts receivable turnover, average collection period, inventory turnover, and days in inventory at the end of the current year. (Round answers to 1 decimal place, e.g. 1.6.)

Answers

Answer:

a. Current ratio = Total current assets/Total current liabilities

Current ratio = $6,840/$3,420

Current ratio = 2 : 1

b. Accounts receivable turnover = Net credit sales / [Net beginning accounts receivables + Net ending accounts receivables / 2]

Accounts receivable turnover = $13,940 / [$3,300+$3,500/2]

Accounts receivable turnover = $13,940 / $3,400

Accounts receivable turnover = 4.1 times

c. Average collection period = 365 / Accounts receivables turnover

Average collection period = 365 / 4.1

Average collection period = 89.0244

Average collection period = 89 days

d. Inventory turnover = Cost of goods sold / [Beginning inventory+Ending inventory/2]

Inventory turnover = $9,000 / [$1,500+$1,500/2]

Inventory turnover = $9,000 / $1,500

Inventory turnover = 6 times

e. Days in inventory at the end of the current year = 365 / Inventory turnover

Days in inventory at the end of the current year = 365 / 6

Days in inventory at the end of the current year = 60.8333

Days in inventory at the end of the current year = 61 days

Dockwiller Inc. manufactures industrial components. One of its products, which is used in the construction of industrial air conditioners, is known as D53. Data concerning this product are given below: The above per unit data are based on annual production of 8,000 units of the component. Direct labor is a variable cost. The company has received a special, one-time-only order for 500 units of component D53. There would be no variable selling expense on this special order and the total fixed manufacturing overhead and fixed selling and administrative expenses of the company would not be affected by the order. Assuming that Dockwiller has excess capacity and can fill the order without cutting back on the production of any product, what is the minimum price per unit below which the company should not accept the special order

Answers

Answer: $30

Explanation:

The company has excess capacity which means that we do not have to worry about opportunity costs.

We also do no have to worry about fixed costs and selling expenses.

The only relevant cost is therefore the variable costs:

= Direct labor + Direct material + Variable manufacturing overhead

= 26 + 3 + 1

= $30

Below $30 would mean incurring a loss.

Pizza ltd. leased equipment from Tasty Company under a four-year lease requiring equal annual payments of sh.86, 038, with the first payment due at lease inception. The lease does not transfer ownership, nor is there a bargain purchase option. The equipment has a 4-year useful life and no residual value. If Pizza ltd.’s incremental borrowing rate is 10% and the rate implicit in the lease (which is known by Pizza ltd.) is 8%, what is the amount recorded for the leased asset at the lease inception?

Answers

Answer:

Sh. 300,001.60

Explanation:

Note: Missing word has been attached

Particulars                                                     Amount

Annual payments                                          86,038

x PV Annuity due 8%, 10 periods                 3.48685

Amount recorded for the leased asset      300,001.60

Which facilities or amenities are most commonly available on a cruise chip?

Answers

Answer:

Generally, all cruise ship amenities have dining, entertainment, shopping or sporting facilities. There are bars and lounges as well, with some ships providing casinos and other adult-themed entertainment facilities.

Explanation:

Yahir wants to become an Actor. What are the most helpful examples of milestones for this goal? Check all that apply.

taking an acting class
running a race
taking a science class
learning how to cook
participating in a school play
auditioning for a part in a television show

Answers

The helpful examples of milestones for becoming an actor includes:

taking an acting classparticipating in a school play auditioning for a part in a television show

Who is an actor?

An actor means someone who profession is based on acting on the stage, films, television etc.

The helpful examples of milestones for becoming an actor includes taking an acting class, participating in a school play  and auditioning for a part in a television show.

Therefore, the Option A, E and F is correct.

Read more about Actor skills

brainly.com/question/1543496

1. During a recession, what specific actions in fiscal policy will the government do to help the economy? What specific actions in monetary policy will the Fed do to help the economy?


2. During an inflationary period and heated economy, what specific actions in fiscal policy and monetary policy will be expected?

Answers

Answer:

1.

Specific fiscal policies

increase government spending

reduce taxes

Specific monetary policies

open market purchase

lower interest rate

2.

Specific fiscal policies

reduce government spending

increase taxes

Specific monetary policies

open market sale

increase interest rate

Explanation:

Recession is when the GDP of two consecutive quarters is negative. the goal of policies at this time would be to increase spending

Inflation is a persistent rise in the general price levels. The goal of policies would be to reduce money supply

Discretionary fiscal policies are deliberate steps taken by the government to stimulate the economy in order to cause the economy to move to full employment and price stability more quickly than it might otherwise.

Discretionary fiscal policies can either be expansionary or contractionary

Expansionary fiscal policy is when the government increases the money supply in the economy either by increasing spending or cutting taxes. Expansionary fiscal policy should be carried out in a recession. Cutting taxes increases disposable income and spending  

Contractionary fiscal policies is when the government reduces the money supply in the economy either by reducing spending or increasing taxes. This should be carried out in an inflationary period

Monetary policy are policies taken by the central bank of a country to shift aggregate demand.

There are two types of monetary policy :

Expansionary monetary policy : these are polices taken in order to increase money supply. When money supply increases, aggregate demand increases. reducing interest rate and open market purchase are ways of carrying out expansionary monetary policy

Contractionary monetary policy : these are policies taken to reduce money supply. When money supply decreases, aggregate demand falls. Increasing interest rate and open market sales are ways of carrying out contractionary monetary policy

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For the current fiscal year, Purchases were $350,000, Purchases Returns and Allowances were $5,000 and Freight In was $29,000. If the
beginning merchandise inventory was $210,000 and the ending merchandise inventory was 595,000, the Cost of Goods Sold is:

Answers

Answer:

212,000

Explanation:

last year, cayman corporation had sales of $26 million, total variable costs of $15 million, and total fixed costs of $5,000,000. in addition, they paid $4 million in interest to bondholders. cayman has a marginal tax rate of 21 percent. if cayman's sales increase by 15%, what should be the increase in operating income

Answers

Answer:

Cayman Corporation

The increase in operating income is 27.5% (or $1.65 million).

Explanation:

a) Data and Calculations:

Sales last year =       $26 million

Total variable costs     15 million

Contribution margin  $11 million

Fixed costs                   5 million

Operating income     $6 million

Bondholders' interest 4 million

Income before tax    $2 million

Income taxes (21%)    0.42 million

Net income              $1.58 million

                                    Last Year   Increase by 15%

Sales revenue =       $26 million     $29.9 million

Total variable costs     15 million        17.25 million

Contribution margin  $11 million     $12.65 million

Fixed costs                   5 million         5.0 million

Operating income     $6 million       $7.65 million    $1.65 m or 0.275

Bondholders' interest 4 million         4.0 million

Income before tax    $2 million         3.65 million

Income taxes (21%)    0.42 million    0.7665 million

Net income              $1.58 million     2.8835 million = 82.5%

The management of Penfold Corporation is considering the purchase of a machine that would cost $270,000, would last for 5 years, and would have no salvage value. The machine would reduce labor and other costs by $60,000 per year. The company requires a minimum pretax return of 12% on all investment projects. The net present value of the proposed project is closest to:______.
a. $(11,700).
b. $(53,700).
c. $(269,997).
d. $(113,700).

Answers

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Initial investment= $270,000

Cash flow= $60,000

Number of years= 5

Discount rate= 12%

To calculate the net present value (NPV), we need to use the following formula:

NPV= -Io + ∑[Cf/(1+i)^n]

∑[Cf/(1+i)^n]:

Cf1= 60,000/1.12= 53,571.43

Cf2= 60,000/1.12^2= 47,831.63

.....

Cf5= 60,000/1.12^5= 34,045.61

∑[Cf/(1+i)^n]= 216,286.57

Now, the NPV:

NPV= -270,000 + 216,286.57

NPV= -53,713.43

g The liquidity trap refers to the situation where Multiple Choice the Fed adds excess reserves to the banking system, but it has minimal positive effect on lending, investment, or aggregate demand. excessive consumer debt limits the growth in consumer spending necessary to bring the economy out of recession. the public debt is so large that federal borrowing drives up interest rates and discourages private sector spending. a financial crisis causes a run on banks and the elimination of billions in excess reserves.

Answers

Answer:

The Fed adds excess reserves to the banking system, but it has minimal positive effect on lending, investment, or aggregate demand

Explanation:

liquidity trap can be regarded as a case whereby monetary policy becomes ineffective as a result of very low interest rates, and activities of

consumers, whereby consumer will prefer saving their money instead of

investing it in some investment as well as higher-yielding bonds. It should be noted that the The liquidity trap refers to the situation where The Fed adds excess reserves to the banking system, but it has minimal positive effect on lending, investment, or aggregate demand

Irene has made Sara an offer on the purchase of a capital asset. Irene will pay (1) $200,000 cash or (2) $50,000 cash and a 6% installment note for $150,000 guaranteed by City Bank of New York. If Sara sells for $200,000 cash, she will invest the after-tax proceeds in certificates of deposit yielding 6% interest. Sara’s cost of the asset is $25,000. Why would Sara prefer the installment sale?

Answers

Answer:

Irene would prefer the instalment sale because she can defer the payment of tax until a future date. On the other hand, if she accept the cash sale, she would have to pay the tax immediately. The amount invested in certificate of deposit would be after tax.

Thus the value of an instalment payment would be greater than the value of a cash payment

Explanation:

Which is the following is NOT an example of a judgment in accounting for inventory is ___________. Group of answer choices the amount paid to a supplier for raw materials the market value used to determine whether a write-off is required under the lower-of-cost or market the amount of overhead to include in the cost of inventory the choice to use LIFO rather than FIFO

Answers

Answer:

This is NOT an example of a judgement in accounting for inventory is:

the amount paid to a supplier for raw materials.

Explanation:

Professional judgment is always required to determine the value to be ascribed to ending inventory.  This judgment results from the application of years of accumulated knowledge and experience which the professional accountant has acquired through relevant accounting or auditing training.  The result is the making of informed inventory valuation decisions while observing professional ethical standards.

No one is too old to study​

Answers

Answer:

True.

Explanation:

Because.

Answer:

truee

Explanation:

Using the liquidity-preference model, when the Federal Reserve decreases the money supply, a. the equilibrium interest rate increases. b. the aggregate-demand curve shifts to the right. c. the quantity of goods and services demanded is unchanged for a given price level. d. the short-run aggregate-supply curve shifts to the left.

Answers

Answer:

A

Explanation:

When the fed increases money supply it is known as expansionary monetary policy. the excess of supply over demand leads to a fall interest rate

Fleming Company provided the following information on selected transactions during 2021: Dividends paid to preferred stockholders $ 500,000 Loans made to affiliated corporations 1,400,000 Proceeds from issuing bonds 1,600,000 Proceeds from issuing preferred stock 2,100,000 Proceeds from sale of equipment 800,000 Purchases of inventories 2,400,000 Purchase of land by issuing bonds 600,000 Purchases of treasury stock 1,200,000 The net cash provided (used) by financing activities during 2021 is

Answers

Answer:

$2,000,000

Explanation:

Calculation to determine what The net cash provided (used) by financing activities during 2021 is

Using this formula

Net cash provided (used) by financing activities=(Dividends paid to preferred stockholders)+Proceeds from issuing bonds+Proceeds from issuing preferred stock+(Purchases of treasury stock )

Let plug in the formula

Net cash provided (used) by financing activities=($ 500,000) +$1,600,000 + $2,100,000 + ($1,200,000)

Net cash provided (used) by financing activities=$2,000,000

Therefore The net cash provided (used) by financing activities during 2021 is $2,000,000

The likelihood that a decision maker will ever receive a payoff precisely equal to the EMV when making any one decision is: a. Low (near 0%) b. High (near 100%) c. Dependent on the number of alternatives d. Dependent upon the number of states of nature 3 points

Answers

Answer: low (near 0%)

Explanation:

The expected monetary value(EMV) simply refers to the amount of money that an economic agent can expect to make based on a particular decision that's made.

It should be noted that the likelihood that a decision maker will be able to receive a payoff that is exactly as thesame as the EMV when a decision is being made will be near to zero as it's very low that it'll happen.

Splish Company purchased a computer for $9,920 on January 1, 2019. Straight-line depreciation is used, based on a 5-year life and a $1,240 salvage value. On January 1, 2021, the estimates are revised. Splish now feels the computer will be used until December 31, 2022, when it can be sold for $620. Compute the 2021 depreciation. (Round answer to 0 decimal places, e.g. 45,892.) Depreciation expense, 2021 g

Answers

Answer:

$2914

Explanation:

The following steps would be taken to determine the answer

1. Calculate depreciation expense given the initial information  

2. calculate the accumulated depreciation by the second year. Accumulated depreciation is sum of depreciation expense

3. subtract the accumulated depreciation from the cost price of the asset. This would give the book value  

4. calculate the depreciation expense using the new information and the book value

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

($9,920 - $1240) / 5 =  $1736

Accumulated depreciation = 1736 x 2 = $3472

Book value at the beginning of 2021 = 9920 - 3472 = $6448

Depreciation expense in 2021 = (6448 - 620) / 2 = $2914

Services are __________ products. By contrast, goods are __________ products.
a. rare; common
b. intangible; tangible
c. expensive; inexpensive
d. only business; only consumer

Answers

Answer:

B

Explanation:

Service is an action being done which is why it's not tangible while goods are the produced items which are tangible

Shoemacher has $20,000 to invest in two types of mutual funds: a High-Yield Fund and an Equity Fund. The High-Yield fund has an annual yield of 12%, while the Equity fund earns 8%. He would like to invest at least $3000 in the High-Yield fund and at least $4000 in the Equity fund. How much should he invest in each to maximize his annual yield, and what is the maximum yield?

Answers

Answer:

you have to maximize the following equation: 0.12A + 0.08B

Where A is the amount of money invested in the high yield fund

Where B is the amount of money invested in the equity fund

A + B = 20,000

A ≥ 3,000

B ≥ 4,000

Using Solver, the optimal solution is to invest $16,000 in A and $4,000 in B. Maximum annual yield = $2,240

Fabrick Company's quality cost report is to be based on the following data: Lost sales due to poor quality $ 78,000 Quality data gathering, analysis, and reporting $ 23,000 Net cost of spoilage $ 88,000 Re-entering data because of keying errors $ 98,000 Test and inspection of in-process goods $ 24,000 Final product testing and inspection $ 78,000 Statistical process control activities $ 49,000 Returns arising from quality problems $ 16,000 Downtime caused by quality problems $ 26,000 What would be the total appraisal cost appearing on the quality cost report

Answers

Answer:

$102,000

Explanation:

Calculation to determine What would be the total appraisal cost appearing on the quality cost report

Using this formula

Total appraisal cost=Test and inspection of in-process goods + Final product testing and inspection

Let plug in the formula

Total appraisal cost=$ 24,000+$78,000

Total appraisal cost=$102,000

Therefore What would be the total appraisal cost appearing on the quality cost report is $102,000

Suppose you would like to make a global change to the font type and font color for all slides with the comparison layout. Which of the following would be the most efficient way to make this change?

Use Format Painter.

Use Animation Painter.

Use font commands on the Home tab.

Use slide master.

Answers

Answer:

D. Use slide master.

Explanation:

Edge

Bakan Corporation has provided the following production and average cost data for two levels of monthly production volume. The company produces a single product. Production volume 8,600 units 9,600 units Direct materials $ 98.70 per unit $ 98.70 per unit Direct labor $ 25.60 per unit $ 25.60 per unit Manufacturing overhead $ 73.20 per unit $ 69.20 per unit The best estimate of the total variable manufacturing cost per unit is:_______

Answers

Answer:

$159.1

Explanation:

The computation of the total variable manufacturing cost per unit is shown below;

At 8,600 units,

The total cos is

= (Direct material per unit + Direct labor per unit + Manufacturing cost per unit) × Number of units

= ($98.70 per unit + $25.60 per unit + $73.20 per unit) × 8,600 units

= $197.5 per unit × 8,600 units

= $1,698,500

At 9,600 units

The Total cost

= ($98.70 per unit + $25.60 per unit + $69.20) × 9,600 units

= $193.5 per unit × 9,600 units

= $1,857,600

So, the best estimated would be;

= ($1857,600 - $1,698,500) ÷ (9,600 units - 8,600 units)

= $159,100 ÷ 1,000 units

= $159.1

Can You Learn To Lead, written by the New York Times, do you believe anyone can learn to read? Why or why not? Explain your answer by pointing out details from the article.

Answers

Answer:

GUESS WHAT TIME IT IS FOR YOU time for u to ask goo gle not us.. thx for the points tho

Explanation:

have a good day :)

During 2019, Coronado Industries expected Job No. 26 to cost $300000 of overhead, $500000 of materials, and $200000 in labor. Coronado applied overhead based on direct labor cost. Actual production required an overhead cost of $370000, $610000 in materials used, and $260000 in labor. All of the goods were completed. What amount was transferred to Finished Goods?

Answers

Answer:

See below

Explanation:

Given the above information, first we will compute the predetermined overhead rate

Predetermined overhead rate

= Estimated manufacturing overhead / Estimated labor

= $300,000/$200,000

= 1.5

The next step is to apply the

= [(1.5 × $260,000) + $260,000 + $610,000]

= $390,000 + $260,000 + $610,000

= $1,260,000

Piedmont Company segments its business into two regions—North and South. The company prepared the contribution format segmented income statement as shown: Total Company North South Sales $ 825,000 $ 550,000 $ 275,000 Variable expenses 495,000 385,000 110,000 Contribution margin 330,000 165,000 165,000 Traceable fixed expenses 156,000 78,000 78,000 Segment margin 174,000 $ 87,000 $ 87,000 Common fixed expenses 69,000 Net operating income $ 105,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar sales for the North region. 3. Compute the break-even point in dollar sales for the South region. (For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar.)

Answers

Answer:

Piedmont Company

1. Companywide break-even point in dollar sales

= $562,500

2. Break-even point in dollar sales for the North region

= $260,000

3. Break-even point in dollar sales for the South region

= $130,000

Explanation:

a) Data and Calculations:

Contribution format segmented income statement:

                                               Total Company       North          South

Sales                                           $ 825,000     $ 550,000    $ 275,000

Variable expenses                        495,000        385,000         110,000

Contribution margin                     330,000         165,000        165,000

Traceable fixed expenses            156,000           78,000         78,000

Segment margin                           174,000        $ 87,000      $ 87,000

Common fixed expenses             69,000

Net operating income              $ 105,000

Contribution margin ratio = Contribution margin/Sales

=  $330,000/$825,00 = 0.40

For the north = $165,000/$550,000 = 0.30

For the south = $165,000/$275,000 = 0.60

Break-even point in dollar sales = Fixed cost/Contribution margin ratio

Companywide break-even point in dollar sales = $225,000/0.40

= $562,500

Break-even point in dollar sales for the North region = $78,000/0.30

= $260,000

Break-even point in dollar sales for the South region = $78,000/0.60

= $130,000

what is cover letter is?

Answers

Answer:

A cover is a job application or document in this case that is submitted with The client's/Your credentials and why your interested in the job opening.

Prokp Co.'s records for April disclosed the following data relating to direct labor: Actual labor cost (payroll) for April$35,000 Labor rate variance$5,000favorable Labor efficiency variance$3,900unfavorable Actual direct labor hours worked (AQ) 2,500 Prokp's total standard direct labor hours allowed (SQ) for units produced in April (to nearest whole number) were: Multiple Choice

Answers

Answer:

2,256 hours

Explanation:

The computation of the total standard direct labor hours allowed (SQ) for units produced is shown below;

As we know that

Labor rate variance = (Actual hours × Actual rate) - (Actual hours ×  Standard rate)

($5,000) = $35,000 - (2,500 ×  Standard rate)

2,500 ×  Standard rate = $40,000

Standard rate = $16

Now

Labor efficiency variance = (Actual hours ×  Standard rate) - (Standard hours ×  Standard rate)

$3,900 = (2,500 ×  $16) - (Standard hours ×  $16)

Standard hours ×  $16 = 36,100

Standard hours = 2,256.25

= 2,256 hours

Marigold Corp. bought a machine on January 1, 2011 for $806000. The machine had an expected life of 20 years and was expected to have a salvage value of $76000. On July 1, 2021, the company reviewed the potential of the machine and determined that its future net cash flows totaled $395000 and its fair value was $288000. If the company does not plan to dispose of it, what should Marigold record as an impairment loss on July 1, 2021

Answers

Answer: Marigold should record $134,750 as an impairment loss on July 1, 2021

Explanation:

Given that  

Cost of the machine= 806,000

Expected life= 20 years

Time between January 1, 2011 and July 1 2021 = 10 1/2years

salvage value $76000.  

Fair value= $288, 000

We know that the

Carrying amount /Book Value of machine = Cost of the machine- (Cost of the machine-salvage value)/expected life x time (ie from 2011 and 2021)

Carrying amount of machine =806,000 - [(806,000-76,000)/20  x 10.5 years]

=806,000 -383,250=$422,750

Asset is impaired when the Book value is more than net realizable value,

Here, The Book Value of $422,750 is greater than  net realizable value,$395000.

Therefore  loss on Impairment= Carrying amount - Fair value

$422,750-$288000

=$134,750

The demand for a resource rises as Question 16 options: its productivity rises and the relative prices of substitutable resources rise. its productivity rises and prices of substitutable resources fall. its productivity falls and the relative prices of substitutable resources fall. its productivity falls and prices of substitutable resources fall.

Answers

Answer:

its productivity rises and the relative prices of substitutable resources rise.

Explanation:

In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.

The law of demand states that, the higher the demand for goods and services, the higher the price it would be sold all things being equal. Thus, there exist a negative relationship between the quantity of goods demanded and the price of a good i.e when the prices of goods and services in the market increases or rises: there would be a significant decline or fall in the demand for this goods and services.

This ultimately implies that, an increase in the price level of a product usually results in a decrease in the quality of real output demanded along the aggregate demand curve.

A substitute product can be defined as a product that a consumer sees as an alternative to another product and as such would offer similar benefits or satisfaction to the consumer.

For substitute products (resources), the cross-price elasticity of demand is always positive because the demand of a product increases when the price of its close substitute (alternative) increases.

Hence, the demand for a resource rises as its productivity rises and the relative prices of substitutable resources rise.

Other Questions
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