Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1) If Localis increases its price this will decrease the number of its customers. 2) A 15 % increase in price of Localis will increase

image text in transcribed
image text in transcribed
1) If Localis increases its price this will decrease the number of its customers. 2) A 15 % increase in price of Localis will increase quantity demanded by the same percentage. 3) People's expenditure on Localis as a proportion of their income will increase considerably when their income increase. 4) If Localis increases its price this will reduce its revenues. 5) If The Marshall store decreases its price this will increase the sales of 'Localis'. 6) Localis's sales are more affected by the price of 'Meat hook store' than by the price of its own service. 7) If Localis decreases its price this will reduce its revenues. 8) If income increases by 25%, customer's expenditure on Localis will decrease by 10%. 9) 'The Marshall store' is a complement for Localis. 10) Current sales are over 700 units a month

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Macroeconomics

Authors: Michael Parkin

10th Edition

013485330X, 978-0134853307

More Books

Students also viewed these Economics questions