How might a market research analyst use measures of elasticity—price, cross, and income—in her work? Explain.
What will be an ideal response?
A market researcher is interested in determining the effects of changes on demand for a product or industry. Each measure of elasticity can be critical here. Price elasticity helps predict changes in unit output for a price change. Income elasticity helps predict changes in demand as buyer income changes, perhaps over a business cycle. Cross elasticity helps predict the impact of a change in prices of competitors in the industry, competing products, and other products that affect demand for a particular product. Market researchers rely upon all of these in defining markets, defining boundaries of markets, and analyzing effects from competitors.
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If the cost efficiency of labor equals 2, then
A. The product price is 200 percent of the wage rate. B. Each extra dollar spent on wages returns 2 units of additional output. C. The wage rate is 100 percent more than the product price. D. Labor costs 100 percent more than the revenue it generates.
In 1773, who won 20,000 pounds (approx. 12 million dollars) by becoming the first person to accurately measure longitude while out at sea?
a. John Harrison b. James Cook c. Alexander Agassiz d. Roald Amundsen
When a worker in the United States sends money to his family in Mexico, this transaction is recorded in the U.S. balance of payment as an:
A. outflow in the merchandise account. B. outflow in the net transfer account. C. inflow in the investment income account. D. inflow in the service account.
(Consider This) Which of the following claims is not made by opponents of a value-added tax (VAT)?
A. Savings and investment is discouraged because future consumption is penalized. B. The VAT is regressive, potentially leading to additional progressive taxes to offset the regressive VAT. C. Sellers bear a disproportionately large burden of the tax. D. The VAT is a hidden tax, and thus easier to raise to support the expansion of government.