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In China, many people are removing their money from the state banks and lending it out themselves Answer

In China, many people are removing their money from the state banks and lending it out themselves. The interest rate earned in a state bank account is about one-half the rate of inflation. On the other hand, loaning money to friends, relatives and, even unrelated entrepreneurs can often earn the investor double or more over the inflation rate. The gray market, an underground network of investors and private businesses, moves the cash from lenders to businesses. Judge whether marketing occurred in this situation and justify your conclusions. Appraise the effectiveness of government regulation in controlling markets.

Answer:

Four factors that is required for marketing to occur. (1) There must be two or more parties with unsatisfied needs. The lenders want to receive a higher interest rate on their funds and the businesses need short-term loans. (2) There must be a desire and an ability to satisfy those needs. The lenders want to receive a higher interest rate on their funds and the businesses need short-term loans. The money is available, since the lenders removed it from the state banks. (3) There must be a way for the parties to communicate. Word-of-mouth from the gray market, an underground network, allows communication between the lenders and businesses. (4) There must be something to exchange. Cash was exchanged in the form of loans, repaid with interest. So, we see that marketing did occur.

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Julia visits her local grocery store to buy a jar of jam. She is overwhelmed to see the twenty-four varieties Answer

17.6 Julia visits her local grocery store to buy a jar of jam. She is overwhelmed to see the twenty-four varieties shown in Figure 17.3 there.

 Suppose she makes her decision by evaluating every pairwise comparison among the twenty four varieties. How many comparisons does she have to make, and how long will it take her if she requires 1 second for each comparison?b. Suppose she uses a different system for making her decision. First, she considers each of the separate categories separately and m the pairwise comparisons just within the category to find the best. Then, she takes the best from each category and makes all the pairwise comparisons among them. Has she reduced the number of comparisons and total decision time using this system?

Ans:

Each variety of the jam would need to be compared with other 23 varieties and so the nos. of comparison would be = 24*23In this, we are counting twice for each bar of jam so we would need to divide by 2 to arrive at the total nos. of comparisons.So, total nos. of comparisons = 24*23/2 = 23 * 12 = 276 nos. of waysTime taken to make all comparisons = 276 * 1 = 276 seconds.

 

Different categories that are:Sugar-free – Grape   = 4pairwise comparisons just within this category = 6Sugar-free – Orange   = 2pairwise comparisons just within this category = 1           Sugared raspberry Organic – 2pairwise comparisons just within this category = 1Sugared raspberry Non -Organic – 4pairwise comparisons just within this category = 6

Total Decision Time in this case = 63 Seconds

So, Total nos. of pairwise comparisons in this case = 27 + 36 = 63 Nos.

Total Nos. of pairwise comparisons between the categories to get the best jam = 9*8/2 = 36

Nos. of categories = 9

Total Nos. of pairwise comparisons within the category = 6+1+1+1+10+0+1+1+6 = 27 Nos.

pairwise comparisons just within this category = 1

Sugared Orange Non – Organic – 2

pairwise comparisons just within this category = 0

Sugared Orange Organic – 1

pairwise comparisons just within this category = 10

Sugared Grape Non – Organic – 5

pairwise comparisons just within this category = 1

Sugared Grape Organic – 2

pairwise comparisons just within this category = 1

Sugar-free – Raspberry   = 2