Which economic factors most affect the demand for consumer goods?

July 7, 2024 No Comments

A: The consumer goods sector includes a wide range of retail products purchased by consumers, from staples such as food and clothing to luxury items such as jewelry and electronics. While overall demand for food is not likely to fluctuate wildly – although the specific

What strategies do companies employ to increase market share?

July 7, 2024 No Comments

A: Companies increase market share through innovation, strengthening customer relationships, smart hiring practices, and acquiring competitors. A company’s market share is the percentage it controls of the total market for its products and services. Market share is calculated by measuring the percentage of sales or

Which factors are more important in determining the demand elasticity of a good or service?

July 7, 2024 No Comments

A: Demand elasticity measures how sensitive the quantity demanded of a good or service is to changes in other variables. Many factors are important in determining the demand elasticity of a good or service, such as the price level, type of good or service, availability

What types of consumer goods demonstrate the price elasticity of demand?

July 7, 2024 No Comments

A: All consumer goods are governed by the laws of supply and demand, so every type of consumer good “demonstrates” the price elasticity of demand. This does not mean the relationship between demand and price is equal across all types of consumer goods. For example,

What types of industries are the main consumers of the products of the chemicals sector?

July 7, 2024 No Comments

A: A variety of different industries use chemical products. Construction, automotive manufacturing and other industrial manufacturing operations require the use of chemicals. Many chemical companies process raw materials such as crude oil into more refined products that are used throughout industry. Approximately 80% of the

When did globalization start?

July 7, 2024 No Comments

A: There is fierce debate among scholars about when globalization began. The debate stems partly from the lack of a precise definition of the word. Some argue that globalization as a phenomenon began with the earliest human migratory routes, or with Genghis Khan’s invasions, while

When do economists use real GDP instead of GDP?

July 7, 2024 No Comments

A: Economists use real gross domestic product (GDP) when they want to monitor the growth of output in an economy. Nominal GDP, typically referred to as just GDP, uses the quantities and prices in a given time period to track the total value produced in

When do you buy CIF and when do you buy FOB?

July 7, 2024 No Comments

A: The abbreviation CIF stands for “cost, insurance and freight,” and FOB means “free on board.” These are terms are used in international trade in relation to shipping, where goods have to be delivered from one destination to another through maritime shipping. The terms are

When does vertical integration reduce transaction costs?

July 7, 2024 No Comments

A: As a business technique, vertical integration first emerged in the 19th century. It was a term coined by Andrew Carnegie to describe the structure of his company, U.S. Steel. He had purchased almost every aspect of the supply and distribution chain that his company

When is it better to use systematic over simple random sampling?

July 7, 2024 No Comments

A: Under simple random sampling, a sample of items is chosen randomly from a population, and each item has an equal probability of being chosen. Simple random sampling uses a table of random numbers or an electronic random number generator to select items for its

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