Reflection

1.) How is e-commerce revolutionizing the business world?

- E-commerce refers to the production, advertising, sale, and distribution of products and services from business to business and from business to consumers through the Internet. The biggest lures of e-commerce of consumers are the convenience of having round-the-clock access to the virtual store and the ability to engage in comparative shopping at minimal cost and effort. Through e0commerce, sellers can sharply reduce their cost of executing sales and procuring inputs, reformulate supply chains and logistics and redefine customer relationship management.

2.) Why are tastes converging around the world?

- There is an increasing trend around the world. Tastes in the United States affect tastes around the world, and tastes abroad strongly influence tastes in the United States. While some national differences will surely remain, the information revolution and cross-fertilization of cultures can be expected to accelerate the global convergence of tastes this has important implications for all firms.

3.) If there has been a 10 percent increase in consumers' income between two periods, what was the percentage change in the demand for foreign travel? For tobacco products? For flour?

- Demand value commodity for foreign travel is not available in Case 3-4

- For tobacco products 0.5 / .10 = 5 percent increase in the demand for tobacco products.

- For Flour -0.36/.10 = -3.6 percent decrease in the demand for flour

4.) Suppose that the cross-price elasticity of demand between McIntosh and Golden Delicious apples is 0.8, between apples and apple juice is 0.5., between apples and cheese is 0.4 and between apples and beer is 0.1. What can you say about the relationship