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.
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Answer:
In an e-business innovation cycle, after an organization scans the environment for new emerging and enabling technologies, the next step is to match the most promising new technologies with current economic opportunities.
Answer:
The journal entry would be as follows:
Account Debit Credit
Cash $480
Sales Revenue $500
Credit Card Expense $20
The Credit Card Expense corresponds to the 4% fee that Master Card charged P. Jameson Co. ($500 x 20% = $20)
Answer:
Not involved In the production process
Eg. Selling expenses or advertising expenses
Answer:
The sales mix is 1:2.
Model 101 Model 102
Selling Price 21 56
Variable Cost -14 -35
Contribution Per Unit 7 21
Multiply Sales Mix Ratio 1 2
Weighted Contribution 7 42
Now add the weighted Contribution to compute Contribution margin per composite unit which is 7+42=$49
Explanation:
I assumed that the cost and selling price here for Model 101 is $14 and $21 respectively. Similarly the cost and selling price of Model 102 is $35 and $56 respectively.
Remember that Contribution margin per composite unit means that we will earn 49 dollars(combined contribution of sales mix) if we sell the sale mix of Model 101 and 102 which is 1:2.
