1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
KatRina [158]
3 years ago
12

You work for a marketing firm that has just landed a contract with Run-of-the-Mills to help them promote three of their products

: penguin patties, raskels, and kipples. All of these products have been on the market for some time, but, to entice better sales, Run-of-the-Mills wants to try a new advertisement that will market two of the products that consumers will likely consume together.
As a former economics student, you know that complements are typically consumed together while substitutes can take the place of other goods.
Run-of-the-Mills provides your marketing firm with the following data: When the price of penguin patties increases by 5%, the quantity of raskels sold decreases by 4% and the quantity of kipples sold increases by 5%.
Your job is to use the cross-price elasticity between penguin patties and the other goods to determine which goods your marketing firm should advertise together.
1. Complete the first column of the following table by computing the cross-price elasticity between penguin patties and raskels, and then between penguin patties and kipples. In the second column, determine if penguin patties are a complement to or a substitute for each of the goods listed. Finally, complete the final column by indicating which good you should recommend marketing with penguin patties.
Relative to Penguin Patties
Cross-Price Elasticity of Demand Complement or Substitute Recommend Marketing with Penguin Patties (Yes or No)
Raskels
Kipples
Business
1 answer:
Semmy [17]3 years ago
8 0

Answer;

Raskels = 0.8 Substitute

Kipples = -1 Complement

Explanation:

Cross-price

elasticity of demand , Complement

Raskels (-4%)/(-5%) = 0.8 Substitute

Kipples (5%)/(-5%) = -1 Complement

Recommended

Raskels No

Ripples Yes

Cross price elasticity = Percentage change in quantity demanded of a good/Percentage change in price of another good.

If it is positive, then it means that the good is a substitute and should not be advertised together.

And If it is complement, then the good is a complement and should be advertised together.

You might be interested in
A company has only two divisions: division a and division
Sloan [31]

Answer – Division A

 

EXPLANATION’

 

Given for last year,

Division A made 60% of the company's total revenue.

Let the company’s total revenue for last year be x

60% of x = 0.6x

Division A made 0.6x last year

 

Also given for last year,

Division B made 40% of the company's total revenue.

If the company’s total revenue for last year is x

40% of x = 0.4x

Division B made 0.4x last year

 

For this year,

We are told that division A's revenue has decreased by 35%

Last year’s revenue was 0.6x

Division A’s revenue for this year = 0.6x – (35% of 0.6x)

= (100% of 0.6x) – (35% of 0.6x)

= (100% * 0.6x) – (35% * 0.6x)

= (100% - 35%) * 0.6x

= 65% * 0.6x

= 65/100 * 0.6x

= 0.39x

Therefore this year, Division A’s revenue is 0.39x

 

Again for this year,

We are told that division B's revenue has decreased by 5%

Last year’s revenue was 0.4x

Division B’s revenue for this year = 0.4x – (5% of 0.4x)

= (100% of 0.4x) – (5% of 0.6x)

= (100% * 0.4x) – (5% * 0.4x)

= (100% - 5%) * 0.4x

= 95% * 0.4x

= 0.38x

Therefore this year, Division B’s revenue is 0.38x

 

If Division A’s revenue is 0.39x, and Division B’s revenue is 0.38x; then Division A had higher revenue this year.

4 0
3 years ago
What happens when sellers compete with other sellers to meet consumer's demands, and consumers compete with other consumers to f
Marrrta [24]

Answer:

Markets are competitive.

Explanation:

In the competitive market, the number of sellers competed with each other in terms of prices, quality, maximize the market share.

In the given situation, various sellers are competed with each other for meeting out the consumer demands also at the same time it offers the goods at lowest cost and highest quality so that it capture the whole market

Therefore the second option is correct

6 0
3 years ago
Which is a helpful resource for you during the process of buying a home? A. Realtors B. Local programs C. Government programs D.
Klio2033 [76]

Answer:

A. Realtors

Explanation:

A realtor is a professional who helps clients buy and sell properties.  Realtors are registered by the National Association of Realtors (NAR) and licensed to practice by their local authorities.

Realtors work for real estate companies. They may be real estate agents, salespeople, residential and commercial real estate brokers, property managers, or appraisers. Since they are recognized by law, and their work revolves around properties, realtors stand in a better position to assist someone buying a house.

3 0
3 years ago
Insurance is the way a person or business is protected from :
nevsk [136]

Answer:

losing money

Explanation:

Helps save you from the out of pocket expense if something bad were to happen.

For example if your roof was damaged by a natural disaster it could cost thousnads of dollars out of a persons pocket.

Insurance will pay the cost to repair it allowing you to be protected from losing money.

3 0
3 years ago
Jerome is training to be a vacuum cleaner sales person. initially, he got paid for each customer he called on, even if the custo
soldi70 [24.7K]

The use of behavior shaping. The goal is to force Jerome to become better and better at his sales tactics over time by motivating him to do more demonstrations and close more sales in order to keep getting paid.

8 0
3 years ago
Other questions:
  • All of these are examples of subsidy except ____________________.
    11·2 answers
  • Presented below are three economic events. In each column, indicate whether the event increased, decreased, or had no effect on
    13·1 answer
  • Kenn City obtained a municipal landfill and passed a local ordinance that required the city to operate the landfill so that the
    7·2 answers
  • What is the difference between financial and managerial accounting ?
    10·1 answer
  • Simpson Sign Company based in Frostbite Falls, Minnesota has a 6-month C$100,000 contract to complete sign work in Winnipeg, Man
    7·1 answer
  • If Newble paid dividends of $100 million in 2016 and made no stock issues, what must have been net income during the year?
    8·1 answer
  • Nation A builds a new highway next to citizens’ properties. In the months following, littering as well as several highway accide
    5·1 answer
  • Can you help me with compound inequalities <br><br>​
    11·1 answer
  • McLaughlin, Inc. acquires 70 percent of Ellis Corporation on September 1, 2018, and an additional 10 percent on November 1, 2019
    13·1 answer
  • with interest rates rising, why do you believe purchasing a home can be one of the most stressful experiences for people? explai
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!