Concept explainers
Given scenario:
Person X is the owner of the small company which provides heating oil to business customers and residential customers in the rural country. Person X is a respected member of the community. Due to energy efficiency and a move away from oil heat, the profits are cut down to nothing. Person X hired Person H for the post of marketing manager. During the prior heating season, due to increase in the oil prices, customers are comfortable to pay more than $2.60 per gallon. However, Person H stated that providing the special offer (pricing $2.40 per gallon) helps to give more profit.
To determine: The role of supply and demand in the scenario.
Trending nowThis is a popular solution!
Chapter 1 Solutions
Business Esentials, Student Value Edition Plus 2017 MyLab Intro to Business with Pearson eText -- Access Card Package (11th Edition)
- Describe the type of potential market failure, and what is the relevance of the concept of the market to government intervention in the economy?arrow_forwardWhat is the commercial market?arrow_forwardCompetition in the Free Market System: Why is competition an important element of the free market system? Bring current examples of competition into the discussion. How can competition hinder or help the free market system?arrow_forward
- What is the concerns, their importance and their challenges of Economic Complexityarrow_forwardwhy economists are sceptical about industrial policies? Please provide specific reasons?arrow_forwardIs gross domestic product a reliable indicator of a nation’s economic health? What might be a better indicator?arrow_forward
- Foundations of Business - Standalone book (MindTa...MarketingISBN:9781285193946Author:William M. Pride, Robert J. Hughes, Jack R. KapoorPublisher:Cengage LearningFoundations of Business (MindTap Course List)MarketingISBN:9781337386920Author:William M. Pride, Robert J. Hughes, Jack R. KapoorPublisher:Cengage Learning