Why do suppliers are fast to respond to an increase of price but slow when prices of their commodities are low.
Answer the following structured questions effectively. Connect your discussions and explanations based on your understanding and apply critical and logical thinking to be able to produce an effective and interesting answers for each assessment questions provided.
Land labor capital and entrepreneur are the four factors of production. Basically, land, labor and capital used as input factors in the production process. Using the input factors in the production process, how can you explain the concept of productivity?
In simple sense, the opportunity cost of a choice is what you gave up in order to get something (Nash, 2020). Produce at least two examples of Opportunity cost principle in the real-life scenario.
When the demand of a commodity increases in the marketplace, considering that you are a supplier of such commodities, what decision making will you take? Explain your answer using 70 words.
Analyze the article below and give your responses to the following questions which follow.
Elasticity is a measure of the responsiveness of demand – and here we will look at three separate measures of responsiveness: how demand responds to changes in income (income elasticity), how demand responds to changes in prices of other goods (cross-price elasticity), and how demand responds to changes its own price (own-price elasticity) Web.uri.edu. (2011). Analyze the scenario below and answer the question which follow.
Answer preview Why do suppliers are fast to respond to an increase of price but slow when prices of their commodities are low.