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Maksim231197 [3]
2 years ago
12

The cross-price elasticity between gillette razors and a related good is -3. What happens to the demand for the related good if

the price of gillette razors falls by 10 percent?
Business
1 answer:
Deffense [45]2 years ago
8 0

If the price of Gillette razors falls by 10 percent the demand for the related goods will rise by 34%.

Cross-price elasticity measures how sensitive the demand of a product is over a shift of a corresponding product charge. regularly, within the market, some goods can relate to one another. this can mean a product's price rise or decrease can definitely or negatively affect the other product's demand.

If the absolute value of the cross elasticity of demand is more than 1, the cross elasticity of demand is elastic, which means a change in fee of product A affects a greater than a proportionate exchange in quantity demanded of product  B.

In economics, the cross elasticity of demand or cross-fee elasticity of demand measures the proportion of trade of the quantity demanded a product to the percentage of trade within the price of any other product, ceteris paribus.

Learn more about Cross-price elasticity here brainly.com/question/13446889

#SPJ4

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4 0
3 years ago
Being Human, Inc., recently issued new securities to finance a new TV show. The project cost $14.1 million, and the company paid
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Answer:

The company’s target debt-equity ratio is 1.16 : 1

Explanation:

Percentage flotation costs = 1 - (14100000/14100000 + 735000)

                                             = 1 - (14100000/14835000)

                                             = 4.95%

We know that:

(1 + Debt/Equity)*4.95%  = 0.071 + 0.031*(Debt/Equity)(Percentage flotation cost equation)

0.0495 + 0.0495*(Debt/Equity) = 0.071 + 0.031*(Debt / Equity)

0.049545*(Debt/Equity) - 0.031*(Debt/Equity) = 0.071 - 0.0495

0.018545*(Debt/Equity) = 0.021455

Debt/Equity = 0.021455/0.018545

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Therefore, The company’s target debt-equity ratio is 1.16 : 1

6 0
3 years ago
The ledger of Windsor, Inc. at the end of the current year shows Accounts Receivable $84,000; Credit Sales $830,000; and Sales R
ira [324]

Answer:

The answer is given below;

Explanation:

 a.  Bad Debt Expense   Dr.$800

      Account Receivable   Cr.$800

b.  $84,000*11%=                          $9,240

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Total                                                 $7,790

Bad Debt Expense Dr.$7,790

Account Receivable  Cr.$7,790

C. Debit Balance    $400

84,000*9%=        $7,560

Total                    $7,960

Bad Debt Expense Dr.$7,960

Account Receivable  Cr.$7,960                                

8 0
3 years ago
Under the modern traditional theory, the sovereign may nationalize foreign-owned property only where: a. it is for a public purp
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Answer: a. it is for a public purpose.

Explanation:

According to the Modern Traditional theory on compensation which deals with the seizure of foreign-owned property by the government of the nation in which the property is located, the sovereign authorities may nationalize foreign-owned property if it is deemed to be for public use.

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