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Ronch [10]
3 years ago
12

Assume that jelly beans and chocolate bars are substitute goods. If the price of jelly beans increases, what will happen to the

demand for chocolate bars?
Business
1 answer:
zavuch27 [327]3 years ago
8 0

Answer:

Demand for chocolate bars increases.

Explanation:

There are two goods: jelly beans and chocolate bars. They are substitute goods. We know that there is a positive relationship between the price of one good and the demand for other good. The substitute goods are generally have a positive cross price elasticity of demand.

This means that as the price of jelly beans increases then as a result the demand for chocolate bars increases even if the price chocolate remains the same.

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Water is the home of fish. If there won't be water then there won't be fish as fish can't survive without water. Similarly, education is like the water and profession is like the fish. Education makes a person skilled, trained, capable to perform a job. If someone tries to do a job without gaining some sort of education then it will be very hard for them to do that particular job properly. Education provides us knowledge and skill to perform any task in a job efficiently and effectively. Education helps to develop one's confidence, knowledge, skills and makes one ready to do any type of job. Education makes a direct contribution to the production of skilled manpower. So without education there won't be any profession.

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3 years ago
If the cross- price elasticity of demand between beer and wine is 0.31, then beer and wine are complements. a. substitutes. b. p
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Answer:

The answer is Substitutes.

Explanation:

For cross-price elasticity we can either have substitute goods or compliment goods. If the cross-price elasticity is positive, then the goods are substitutes and If the cross-price elasticity is negative, then the goods are compliments.

In this example, the cross-price elasticity is 0.31. This answer is postive, meaning, beer and wine are substitutes.

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It can't be complement s because it is not negative.

It can't be necessities because this does not relate to cross-price elasticity

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