The cross elasticity of demand for senior workers is 1.5. Senior workers and entry-level workers are gross complements.
The scale effect dominates in this example.
If the wage of the entry level workers increase, the demand curve would shift to the right.
<h3>What is the crosss price elasticity?</h3>
Cross price elasticity of demand measures the responsiveness of quantity demanded of good A to changes in price of good B.
Cross price elasticity = 15% / 10 = 1.5
Complement goods are goods or resources that are used together. As a result of the decline in wages, senior workers would be laid off. This means that senior workers and entry level workers work together.
<h3>What is the effect on the demand curve if the wages of entry level workers increase?</h3>
If the wage of the entry level workers increase, the demand for senior workers wouuld increase. This would lead to a shift to the right of the demand curve for senior workers.
To learn more about cross price elasticity, please check: brainly.com/question/26054575
Answer:
Explanation:
"I spend more on orange juice even as the price rises".
This implies that orange juice is not an inferior good because people demand less of an inferior product when their prices fall. In this case more is demanded as price rises implying that orange juice is being viewed as a luxury good or healthy drink. Consumers tend to interpret certain price increase positively and view the goods as superior.
Does this mean that I must be violating the law of demand?
YES
Generally, the law of demand states that, "citeris paribus (with all things being equal), as the price of a good rises, quantity demanded falls; conversely, as the price of a good falls, quantity demanded increases".
Therefore if "I spend more on orange juice even as the price rises", then obviously the law of demand is being violated
Answer:
<h3>Accounting is the process of recording financial transactions pertaining to a business. The accounting process includes summarizing, analyzing and reporting these transactions to oversight agencies, regulators and tax collection entities. The financial statements used in accounting are a concise summary of financial transactions over an accounting period, summarizing a company's operations, financial position and cash flows. </h3><h3 />
Answer:
D. $ 600,000
Explanation:
if X's withdrawals = y
Net Income = 2y
X 's share of profit = 2y ×60%
= 1.2 y
X's Closing capital + X's withdrawals = Opening Capital + Share of Net income
$ 140000 + y = $ 80000 + 1.2y
1.2y - y = $ 140000 - $ 80000
= $60000
0.20y = $ 60000
y = $ 300000
Therefore,
Net Income = 2y
= 2×300000
= $ 600000
Option A. Jessie has the idea for a new phone app so he spend his money to set up a business
