Final answer:
Variability in demand increases the fraction of time a server is working. This impacts business operations as it requires management to plan resource allocation to handle fluctuations in service utilization. Price changes at different points on the demand curve also illustrate how the impact of a change in price can vary.
Step-by-step explanation:
Variability in demand increases the fraction of time a server is working. In the context of a business, changes in demand can affect the capacity and utilization rates of servers or service providers. For example, when demand is high, servers are likely to work more consistently or for a greater fraction of time. Conversely, when demand is variable and unpredictable, it can lead to periods of both high utilization and idle time, depending on the swings in demand.
An increase in the price of a product, especially at a higher point in the demand curve, will generally have a minimal effect on the quantity demanded, as the price change by a small amount, such as a dollar, will constitute a minor change in percentage terms. On the other hand, at the bottom of the demand curve, where the quantity demanded is large, even a one unit change in price might result in only a small percentage difference in quantity demanded.
The concept of variability can also extend to other areas, such as the impact of breakfast consumption on mean work times or the fluctuating production and consumption rates over time. For businesses, management must account for variability in planning for resource allocation and ensuring efficient operation during both peak and off-peak periods.