normative analysis on the desirability of increasing legal immigration to the United States.
How will increased immigration affect US workers, firms and consumers?
Is increased immigration good or bad?
What kinds of problems will it create?
What kinds of benefits do you see?
Are there some non-economic arguments you should consider?

Answers

Answer 1

Normative analysis on the desirability of increasing legal immigration to the United States involves evaluating the potential advantages and disadvantages of such a policy change. While there are varying perspectives on this issue, it is important to consider several key aspects.

Increased immigration can have both positive and negative impacts on different stakeholders. For US workers, increased immigration may lead to more competition in the labor market, potentially affecting wages and job opportunities, particularly for low-skilled workers. However, it can also address labor shortages in specific sectors, contribute to economic growth, and complement the existing workforce by bringing in diverse skills and talents.

Firms can benefit from increased immigration as it can provide access to a larger pool of skilled labor, fostering innovation, productivity, and economic expansion. Consumers may also benefit from lower prices of goods and services resulting from increased competition and efficiency driven by immigrant workers.

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Related Questions

3. ______ are defined as goods or services that are required for health and safety.

Answers

Occupational Health and Safety are defined as goods or services that are required for health and safety. Information standards are guidelines governing the information that must be provided to consumers when they purchase specific goods.

What is the safety of goods?

A safe product is one that delivers either no risk or a minimum tolerable level of risk, taking into account the product's typical or reasonably foreseeable use and the need to maintain a high level of consumer protection.

Occupational health and safety is a multidisciplinary discipline that deals with all elements of workplace health and safety, with a heavy emphasis on preventing workplace dangers.

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Every T account has two sides, credit and credit side.

True
False​

Answers

Answer:

False

Explanation:

The two sides are DEBIT and credit.

When lifting, you should use what part of your body to do most of the lifting?

Answers

Thighs, upper arms, and shoulders. Most are legs.

Answer:

You should use your legs to do most of the lifting

Explanation:

Your legs are many times stronger than your back muscles. Let your strength work in your favor. Again, lower yourself to the ground by bending your knees, not your back.

Question 2(Multiple Choice Worth 5 points)
(02.06 MC)
In general, what kind of people earn the most money?
O People with skills that are in high demand and high in supply
O People with skills that are in high demand but low in supply
O People with skills that are in low demand and low in supply
People with skills that are in low demand but high in supply

Answers

Ans: people with skills that are high in demand but low in supply

They earn the most money since skills also follow the law of supply and demand, so consumers are willing to pay more due to low supply

A competitive analysis of Starbucks entering new markets includes all of the following EXCEPT:

a. McDonalds new store format in Saudi Arabia

b. Espresso drinks being offered at Dunkin Donuts

c. The positioning of Burger King selling coffee drinks.

d. The number of new coffee drinkers in the United States every year

Answers

When conducting a competitive analysis for Starbucks entering new markets, we consider many factors except for the number of new coffee drinkers in the United States every year. Option D is correct.

A competitive analysis of Starbucks entering new markets would focus on analyzing and comparing the strengths, weaknesses, opportunities, and threats posed by its competitors. While the number of new coffee drinkers in the United States every year is important market information, it is not directly related to a competitive analysis of Starbucks entering new markets.

The other options (McDonald's new store format in Saudi Arabia, Espresso drinks being offered at Dunkin Donuts, and the positioning of Burger King selling coffee drinks) are all examples of potential competitors that Starbucks would need to consider in their competitive analysis.

Therefore, option D is correct.

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The four sources of sales training include all of the following EXCEPT?-HR training-Corporate-sponsored training-Training provided by commercial vendors-Certification programs

Answers

The four sources of sales training include all of the following EXCEPT-HR training.

Thus option 1 is correct.

What are the types of sales training?

The four main types of sales training are inside sales training, field sales training, service sales training, and field sales training. Normally, each type is broken down into sales training programmes.

Sales training programmes can often be divided into one of these four groups, although having a range of titles and classifications. These four forms of training are corporate-sponsored training, vendor-sponsored training, courses provided by colleges and universities, and vendor-sponsored training.

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Complete question:

The four sources of sales training include all of the following EXCEPT?

-HR trainingCorporate-sponsored trainingTraining provided by commercial vendorsCertification programs

Explain the change in demand for watermelons using evidence, and show this effect on a supply and demand graph.

Answers

Answer:

Explanation:

Changes in the supply of melon

is brought about both positive and negative factors affecting supply of melon apart from the price of melon

FIRST ANSWER WILL BE NAMED BRAINLIEST
Which action would effectively and appropriately address a budget deficit?
A. reduce income
B. reduce expenses
C. apply for bankruptcy
D. apply for new credit

Answers

Answer:

It is letter B

Explanation:

Reducing expenses would effectively and appropriately address a budget deficit. Thus option B is correct.

What is the budget?

A budget is a financial plan that projects future earnings and costs. A budget, put simply, forecasts future finances in addition to anticipated revenues and expenditures. Calculating the company's earnings and costs for a set period of time is the procedure for creating a budget.

Increasing tax rates while decreasing government expenditures are the two apparent ways to minimize a budget deficit. the reduction of government spending and/or the raising of taxes, which results in either a rise in the primary surplus or a decrease in the budget deficit. greater taxes and less funding by the government. If public spending is lower than tax receipts, a budget surplus results.

Therefore, option B is the correct option.

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the inflation rates in the u.s. economy for 2009 through 2012 are 2.7%, 1.5%, 3.0%, and 1.7%, respectively. what was the purchasing power of a dollar at the beginning of 2013 compared to that at the beginning of 2009?

Answers

At the beginning of 2013, the purchasing power of a dollar was $0.9278 compared to that at the beginning of 2009.

How to calculate purchasing Power

The purchasing power of a dollar at the beginning of 2013 compared to that at the beginning of 2009 can be calculated by considering the cumulative effect of inflation rates from 2009 through 2012.

The formula for this calculation is:

Purchasing Power = Initial Value / (1 + Inflation Rate)ⁿ Where

n is the number of years.

For 2009 through 2012, the inflation rates are 2.7%, 1.5%, 3.0%, and 1.7%, respectively.

To calculate the cumulative effect, we will apply the formula:

Purchasing Power = $1 / ((1 + 0.027) * (1 + 0.015) * (1 + 0.03) * (1 + 0.017))

Purchasing Power = $1 / (1.027 * 1.015 * 1.03 * 1.017)

Purchasing Power = $0.9278 (rounded to four decimal places)

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cash equivalents: multiple choice include accounts receivable. are recorded in petty cash. include 5-year certificates of deposit. are short-term, highly liquid investment assets. include long-term investments.

Answers

Cash equivalents are short-term, highly liquid investment assets.

What are cash equivalents?

When an asset is said to be cash equivalent, it means that the asset is very liquid and can easily be converted to be used as cash. As a result, it can also be traded in certain markets in place of cash.

An example of a cash equivalent asset is short term and highly liquid investment assets such as commercial paper, money market instruments, and U.S. Treasury bills which mature in months. Cash equivalents allow a company to invest and still have liquid assets.

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Which of the following best describes a stock.

A) An incredibly stable investment that is always a safe investment
B) Is insured by the FDIC
C) Represents a share of ownership of a corporation
D) Only sold in the United States

Answers

Answer: C

Explanation: A stock represents a share of ownership of a corporation. Stocks are bought by people so they can get money. If the company's stock they by it from goes well, they get money as well as interest. The answer is C. Hope this helps!

Eric's medical results show that there is an infection in his pancreas. What is his American doctor most likely to do in response to these results

Answers

Eric's American doctor is most likely to prescribe antibiotics to treat the infection in his pancreas.

The type and duration of the antibiotics prescribed will depend on the severity of the infection and Eric's overall health status. The doctor may also recommend lifestyle changes such as avoiding alcohol and fatty foods, as well as prescribing medication to manage any symptoms such as pain or nausea. In severe cases, hospitalization and intravenous antibiotics may be necessary. The doctor may also order additional tests to determine the underlying cause of the infection and to monitor Eric's progress during treatment. It is important for Eric to follow his doctor's instructions carefully to ensure a successful recovery.

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17. Lewis signed a contract for the rights to all timber located on Nine Mile Mine. He agreed to pay $70 per thousand board feet ($70/mbf). As he began work, Nine Mile became convinced that Lewis lacked sufficient equipment to do the job well and forbade him to enter the land. Lewis sued. Nine Mile moved for summary judgment. The mine offered proof that the market value of the timber was exactly $70/mbf, and Lewis had no evidence to contradict Nine Mile. The evidence about market value proved decisive. What is the issue

Answers

Chekit on hist googl

Municipal bonds are issued by what?

Answers

Answer:

Hi, the correct answer to your question is they are securities issued by states, cities

etc/more.

Explanation:

They mostly do this for building like highways, roads and more. It is used to raise more money to build important things for our environment.

Hope this helps! :)

1. he following formula is an example of what type of parameter?
URANK(FG_CONSTITUENTS(180461)=1,P_PRICE_RETURNS(2,12/31/-1,0,JPY))<=10
A. A display parameter
B. A limiting parameter
2. Which of the following is an example of a display parameter in Universal Screening?
A. FF_SALES_GR(ANN,0)>FF_SALES_GR(ANN,-1)
B. RANGE(FF_PE(ANN,0),5,20)
C. UDECILE(ISON_MSCI_REGION(990300,0,CLOSE,OFF),FF_PSALES(ANN,0))>1
D. MAX10(FF_EPS(ANN_R,0))

Answers

(1) The formula is an example of a limiting parameter. Option B is correct.

(2)  An example of a display parameter in Universal Screening is MAX10(FF_EPS(ANN_R,0)). Option D is correct.

The formula represents a limiting parameter because it is used to limit the results based on a specific condition. In this case, the URANK function is used to rank the results based on the condition that the FG_CONSTITUENTS parameter is equal to 1 and the P_PRICE_RETURNS parameter has a specific value.

Then, the formula limits the results to the top 10 based on the ranking. Limiting parameters are commonly used in financial analysis to filter results based on specific criteria. Option B is correct.

MAX10 is a display parameter that is used to display the top 10 results based on a specific parameter. In this case, the parameter is FF_EPS, which represents the earnings per share. The MAX10 function is commonly used in Universal Screening to display the top results based on a specific criterion.

Display parameters are used to display the results of a screening process and help identify the stocks or securities that meet specific criteria. Option D is correct.

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recreation offered to the public with an incentive of making a profit (True or False)

Answers

Recreation offered to the public with an incentive of making a profit is a common practice in many industries. the answer is true.

Recreation that is offered to the public with an incentive of making a profit refers to commercial recreational activities or services provided by businesses or organizations that aim to generate revenue and earn a profit. These activities are typically designed to entertain, engage, or provide leisure experiences to the public while also operating as a business venture.

Various businesses and organizations provide recreational activities, such as amusement parks, sports events, fitness centers, adventure tourism, and entertainment venues, with the aim of generating revenue and making a profit. These establishments offer recreational experiences and services to the public while also seeking to cover their costs, generate income, and earn a profit.

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the nominal interest rate in the u.s. is 5% and the nominal interest rate in canada is 3%. the spot value of the u.s. dollar is 1 ($/canadian dollar) and the forward rate is 1.2 ($/canadian dollar). calculate the forward discount or premium for the dollar. does the interest parity condition hold? if not, explain what is likely to occur in foreign exchange markets. assume that interest rates cannot change.

Answers

The nominal interest rate in the U.S. is 5% and the nominal interest rate in canada is 3%. the spot value of the U.S. dollar is 1 ($/Canadian dollar) and the forward rate is 1.2 ($/Canadian dollar). The forward discount or premium for the dollar is 20%.

To calculate the forward discount or premium for the dollar, we can use the formula:

Forward Discount/Premium = (Forward Rate - Spot Rate) / Spot Rate

Given that,

Spot Rate = 1 ($/Canadian dollar)

Forward Rate = 1.2 ($/Canadian dollar)

Foreign Interest Rate (Canada) = 3%

Domestic Interest Rate (U.S.) = 5%

Forward Discount/Premium = (1.2 - 1) / 1 = 0.2 / 1 = 0.2 or 20%

Therefore, the forward premium for the dollar is 20%.

We compare the nominal interest rates in the U.S. and Canada. If the interest parity condition holds, the forward discount or premium should reflect the interest rate differential between the two countries.

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what is the difference between a charge card and a credit card

Answers

The main difference between a charge card and a credit card is their payment structure and credit limits.  The difference between a charge card and a credit card is that charge cards require full payment each month, have no preset spending limit, and may offer additional perks, while credit cards allow you to carry a balance with interest, have a credit limit, and may focus more on rewards and incentives.

A charge card requires you to pay your balance in full at the end of each billing cycle, whereas a credit card allows you to carry a balance over from month to month while paying interest on the remaining amount. This means that charge cards don't have a preset spending limit, but credit cards do.

With a charge card, since you must pay off the balance each month, there is no interest rate, while credit cards charge interest on any unpaid balance. Credit cards typically have a credit limit, which is the maximum amount you can spend without incurring penalties, whereas charge cards do not have a specific limit, but your spending ability may still be limited based on your payment history and financial situation.

Furthermore, charge cards may have an annual fee, while credit cards may or may not have one. Credit cards also offer rewards and incentives like cashback, points, or miles, while charge cards may offer similar rewards, but often focus more on additional perks like travel benefits and insurance.

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Disadvantages of choosing a job that is extremely popular or in demand

Answers

The disadvantage of choosing a job that is very popular or a job that is in high demand is that after a while such a job may become saturated or it would become monotonous.

What is a high demand job?

This is the term that is used to refer to a job that the people that wpould employ labor are constantly in need of. Such a job is one that would require the people that have the qualification to opt in and get the places and the roles that they are to fill.

The issues that may arise from such a job that is in high demand is that after a period, such a job may have a lot of persons that would want to fulfil the role.

The number of qualified persons may become more than the job that is available for the people to do in the long run.

Hence this is a disadvantage. Therefore I would conclude by saying that the disadvantage of choosing a highly popular job is that the number of persons that are willing to fulfil the role may exceed the job overtime.

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Which dot plot shows three TV's in two houses? A dot plot titled How many T V's Are in Your House going from 0 to 4. 0 has 1 dot, 1 has 2 dots, 2 has 3 dots, 3 has 2 dots, and 4 has 1 dot. A dot plot titled How many T V's Are in Your House going from 0 to 4. 0 and 1 dot, 1 has 2 dots, 2 has 2 dots, 3 has 3 dots, and 4 has 1 dot. A dot plot titled How many T V's Are in Your House going from 0 to 4. 0 has 0 dots, 1 has 3 dots, 2 has 2 dots, 3 has 3 dots, and 4 has 1 dot. A dot plot titled How many T V's Are in Your House going from 0 to 4. 0 has 1 dot, 1 has 2 dots, 2 has 4 dots, 3 has 3 dots, and 4 has 1 dot.

Answers

Answer:

The answer is "The first choice".

Explanation:

Please find the graph file of the given question:

In the given question the first choice is correct because in the graph it has 3 dots, which denotes the (tv's) in 2 that is equal to the two houses.

Which dot plot shows three TV's in two houses? A dot plot titled How many T V's Are in Your House going

Answer:

The answer is A.)

Explanation:

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Explain the relationship between deductibles and premiums
Explain the roles of insurance on having a strategic and strong financial plan.

Answers

Answer:

join bmt-cnup-egu on meet

.

.

.

Omaha Plating Corporation is considering purchasing a machine for $1,500,000. The machine will generate a constant after-tax income of $100,000 per year for 15 years. The firm will use straight-line (SL) depreciation for the new machine over 10 years with no residual value. Its estimated weighted-average cost of capital (WACC) for evaluating capital expenditure proposals is 10%. Note: the PV $1 factor for 10 years, 10% is 0.386; the PV annuity factor for 10%, 10 years is 6.145; and, the PV annuity factor for 10%, 5 years is 3.791. Required: 1. Using a discount rate of 10%, what is the estimated net present value (NPV) of the proposed investment (rounded to the nearest thousand)? 2. What would be your decision (accept o reject the project)? Why? Explain

Answers

1. The estimated net present value (NPV) of the proposed investment, using a discount rate of 10%, is $176,000.

2. Based on the calculated NPV of -$886,000, the project should be rejected. The negative NPV suggests that the present value of the expected cash flows from the project is lower than the initial investment cost. In other words, the project is not expected to generate enough value to cover the cost of the investment and provide a positive return.

To calculate the NPV, we need to determine the present value (PV) of the after-tax income generated by the machine over its useful life and subtract the initial investment.

The annual after-tax income is $100,000, and it remains constant for 15 years. Since the machine has a 10-year useful life, we need to calculate the present value of an annuity factor for 10 years at a discount rate of 10%. The PV annuity factor for 10%, 10 years is 6.145.

PV of after-tax income = $100,000 × 6.145 = $614,500.

Since there is no residual value at the end of the machine's useful life, the initial investment of $1,500,000 needs to be subtracted.

NPV = PV of after-tax income - Initial investment

= $614,500 - $1,500,000

= -$885,500.

Therefore, the estimated NPV of the proposed investment is -$885,500. However, the question asks for the NPV rounded to the nearest thousand, which gives us -$886,000.

The decision to reject the project is based on the principle of NPV analysis, which states that investments with a positive NPV should be accepted, while those with a negative NPV should be rejected. By considering the estimated NPV and the company's objective of maximizing shareholder wealth, it is clear that the investment in this machine does not meet the criteria for acceptance.

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Under a program called the Emissions Trading​ Scheme, the governments of European Union member nations establish overall targets for greenhouse gas emissions and issue​ __________, or​ permits, authorizing companies to emit certain amounts. In​ theory, an increase in the market clearing price of​ __________ should induce firms to develop methods of​ __________ their emissions of greenhouse gases.

Answers

Answer:

allowances; allowances; reducing.

Explanation:

Pollution can be defined as the physical degradation or contamination of the environment through an emission of harmful, poisonous and toxic chemical substances.

Offset trading refers to a type of trading system that is typically designed for the realization of more efficient pollution control.

Additionally, a free market in tradable pollution permits simply means giving manufacturing companies and individuals the legal right to pollution of the environment. For example, ABC company is purchasing the permit of 500 units of carbon dioxide (CO2) pollution annually, this simply means it is permitted to pollute the environment by 500 units of CO2 annually.

Furthermore, a free market in tradable pollution permits has some sort of benefits as companies can resell their unused permits or devise a cheaper means of reducing pollution. It also compensate companies that significantly reduces its pollution of the environment.

Hence, a government could issue allowances or permits to companies, thereby, giving them the permission and authority to emit certain amounts of pollutants. In​ theory, an increase in the market clearing price of​ allowances should stimulate the business firms to develop effective and efficient methods of​ mitigating their emissions of greenhouse gases (pollutants) such as methane, water vapor, carbon dioxide, etc.

1) Wonderpillow is the trading name used by Alan. The business has long-term liabilities of £100 000, non-current assets of £289 770 and current assets of £124 400. The total of current liabilities less current assets is £3 340. What is the total for equity?

2) Ben is a sole trader selling candles from a chain of 18 retail shops. Shortly after Christmas, he is comparing his business’s performance in December with that of the leading candle retailers. Recently published statistics show that the leading retailers made 26.2% gross profit and 9.8% net profit in the month.

Ben’s opening inventory was £4 200 200 and closing inventory was £1 230 400. He purchased inventory valued at £17 206 300 during December and his revenue was £26 500 000.
On the basis of his actual cost of sales in December, what would Ben’s revenue have been, to the nearest £, if he had achieved the same gross profit margin as that of the leading candle’s retailers?

3) Which of the following statements about depreciation are correct?

A. Depreciation is a way of allocating the cost of a non-current asset to the accounting periods that benefit from its use.
B. Depreciation helps to set aside sufficient cash to buy a replacement once the asset is worn out.

4) Beata buys a new notebook on 1 July 2014 for £1872. She does not expect it to have any residual value in four years’ time, at which point she plans to replace it. She depreciates such assets on the straight-line basis, charging depreciation for each full month of ownership. What is the carrying amount (the cost of an asset less accumulated depreciation) of the till at Beata’s year end on 31 October 2015?

Answers

The total for equity of Wonderpillow is £10,230.2. Actual cost of sales is (opening inventory + purchase of inventory - closing inventory), which is (£4,200,200 + £17,206,300 - £1,230,400) = £20,176,100.

Gross profit percentage is 26.2%, which means Gross Profit = 26.2% × £20,176,100 = £5,292,902 Net profit percentage is 9.8%, which means Net Profit = 9.8% × £20,176,100 = £1,976,638. Deducting the cost of goods sold (which is £20,176,100 - £5,292,902 = £14,883,198) from the revenue gives the gross profit earned, which is £11,617,802. Now using the formula Gross Profit / Revenue = Gross Profit Percentage, we have £11,617,802 / Revenue = 26.2% Solving for revenue gives:Revenue = £44,393,321 (to the nearest £). Therefore, Ben’s revenue would have been £44,393,321 if he had achieved the same gross profit margin as that of the leading candle’s retailers.3. The correct statements about depreciation are:

A. Depreciation is a way of allocating the cost of a non-current asset to the accounting periods that benefit from its use.

B. Depreciation helps to set aside sufficient cash to buy a replacement once the asset is worn out.4. Straight-line depreciation is calculated as cost of asset / useful life in months. The useful life is 48 months since it will last four years (from 1 July 2014 to 30 June 2018). For the year ended 31 October 2015, the asset would have been owned for 16 months (July 2014 to October 2015) thus, the depreciation expense for the year is £1872 / 48 months × 16 months = £624. Finally, the carrying amount at the year-end is the cost of the asset less accumulated depreciation, which is £1,872 - £624 = £1,248. Answer: The carrying amount of the notebook at Beata’s year end on 31 October 2015 is £1,248.

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Tia wants to find out students favorite after school activity

Answers

Tia is trying to gather information about students' preferred after-school activities.

She conducts a survey on a sample of students to get their views on doing sports after school. She asks a biased question that can lead to an incorrect conclusion. To rephrase the question so that it is not biased, the following statement could be used: What is your favorite after-school activity?The phrase "Do you like doing sports after school?" is a biased question because it influences students to respond positively to the question.

The question should be open-ended, which means it should not influence a person's response in any way. The rephrased question is open-ended and doesn't lead to a particular answer, giving students the freedom to express their views.

The complete question is:

Tia wants to find out students' favorite after-school activity. She asks a sample of students, "Do you like doing sports after school?" Rewrite the question so it is not biased.

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Will the grading period effect what college you will go to later on?
A (True)
B (False)

Answers

Answer: A

Explanation:

Answer:

NO

Explanation:

You are a marketing research consultant hired to organize focus groups for an innovative german-style fast food restaurant. What kind of people would you elect to participate in focus groups? What screening criteria would you use? What questions would you ask?

Answers

Explanation:

A focus group can be defined as a qualitative marketing research method where some people with common characteristics are brought together in a group who are guided by a trainer to promote discussions on a particular topic of interest and gather information to assist in decision making.

To organize focus groups for an innovative German-style fast food restaurant, you could separate 3 groups, the first being ages 18 to 30, the second 30-45 and the third group 45 and above.

The screening criteria could be, sources of income, profession, sex, taste for food, hobbies, etc.

The questions to ask could be related to the number of times a week people eat fast food, what is your favorite German food, how much are you willing to pay for the options offered in the restaurant, what elements do you consider most attractive in a restaurant ,etc.

To buy a product, customers in a market must first

Answers

To buy a product, customers must first have the need for the product.

Customers cannot just simply buy anything or everything when it comes to products. People love shopping but money is a very useful and powerful resource and customers understand it well, so they don't want to spend it on useless things.

Firstly, there should be a need or a desire to buy a particular product. After that the customer decides his or her budget or the money he would like to spend on that product. If it crosses his or her budget, then the customer may not able to buy the product.

Lastly, there should be willingness to buy the product. Nowadays, we get impressed by big brands, malls and stores giving us immense discounts for even our daily needs. That is how knowingly or unknowingly, we tend to shop more.

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Consumer behavior is the study of people's decisions and the factors that influence those decisions.

Answers

Consumer behavior is the study of people's decisions and the factors that influence those decisions are Psychological Factors, Personal Factors and Social Factors.

Consumer behaviour is the study of how people choose what they purchase, desire, need, or do in relation to a good, service, or business. Understanding consumer behaviour is essential to predicting how prospective customers will react to a new good or service. Additionally, it aids businesses in locating untapped prospects. Numerous problems affecting consumers are specific to their way of thinking. A person's attitude, their capacity for learning or understanding information, and how they perceive a need or circumstance are all examples of psychological aspects.

Personal qualities are traits that are unique to a person and may not apply to other members of the same group. Social traits are the third element that has a substantial impact on customer behaviour. Social influences can range widely and include a person's family, friends, coworkers, schoolmates, or any group of individuals they are affiliated with.

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A state government wants to increase the taxes on cigarettes to increase tax revenue. because cigarettes are addictive, we would expect its demand to be?

Answers

The demand for cigarettes, being addictive in nature, is expected to be inelastic.

When a good or service is considered to have an inelastic demand, it means that changes in price have a relatively small impact on the quantity demanded. In the case of addictive goods like cigarettes, people develop a strong dependence on them, leading to a reduced sensitivity to price changes. This is because individuals who are addicted to cigarettes often prioritize their cravings and are willing to pay higher prices to satisfy their addiction.

Therefore, when the state government increases taxes on cigarettes, it is unlikely to significantly impact the demand for cigarettes. Smokers may continue to purchase cigarettes despite the increased price, as their addiction overrides the price increase. As a result, the tax revenue from the increased taxes on cigarettes is expected to rise, as the demand for cigarettes remains relatively stable or only slightly decreases. Hence, the addictive nature of cigarettes contributes to their inelastic demand, making them less responsive to price changes.

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Final answer:

The demand for cigarettes is inelastic due to their addictive nature, meaning their consumption doesn't significantly change with price increases, such as from added taxes. However, youth smoking is slightly more elastic, with greater reduction in consumption in response to price increases. Despite this, overall cigarette consumption likely won't be significantly reduced by tax increases due to overall demand inelasticity.

Explanation:

As cigarettes are an addictive substance, their demand tends to be inelastic. This means that the quantity demanded doesn't change significantly with price changes. In the context of increasing taxes on cigarettes, we need to understand that there is a difference in the sensitivity of demand between adult and youth smokers. The demand for cigarettes among adult smokers is less reactive, or more inelastic.

However, surprisingly, the demand for cigarettes among youth seems to have greater elasticity. In other words, the quantity of youth smoking will decrease by a greater percentage than that of adult smoking in response to the same percentage increase in price. This can be explained by the lower income and purchasing power of the youth, making them more likely to reduce consumption when prices increase.

Still, because of the inelasticity of cigarette demand overall, increased taxes will likely increase the government's tax revenue without significantly affecting the quantity of cigarettes sold. Producers often pass on the higher costs due to taxes to consumers, resulting in higher prices, but not significantly altering the quantity consumed due to the addiction factor.

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