What is a demand curve? Explain its importance in the context of pricing decisions
What will be an ideal response?
A demand curve shows the number of units the market will buy in a given time period, at different prices that might be charged. Each price the company might charge will lead to a different level of demand. The relationship between the price charged and the resulting demand level is shown in the demand curve. In the normal case, demand and price are inversely related—that is, the higher the price, the lower the demand. Thus, the company would sell less if it raised its price from P1 to P2. In short, consumers with limited budgets probably will buy less of something if its price is too high. Understanding a brand's price-demand curve is crucial to good pricing decisions. Most companies try to measure their demand curves by estimating demand at different prices. The type of market makes a difference. In a monopoly, the demand curve shows the total market demand resulting from different prices. If the company faces competition, its demand at different prices will depend on whether competitors' prices stay constant or change with the company's own prices.
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The world economy has remained static over the past 60 years
Indicate whether the statement is true or false
Which of the following statements is TRUE?
a. External auditors are usually specifically trained to detect fraud. b. Audits of books and records rarely discover frauds. c. Less than 5 percent of all frauds are detected by auditors. d. The presence of auditors provides a major deterrent effect.
A global economy cannot function unless business people know that contracts are enforceable and the appropriate remedy can be achieved
Indicate whether the statement is true or false
Which of the following is not a characteristic of money market funds (MMFs)?
A) They pool money provided by individuals to invest. B) They invest in securities with short-term maturities. C) They are high-risk investments. D) They allow limited check writing.