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nadezda [96]
3 years ago
5

If Good C increases in price by 50 50 % a pound, and this causes the quantity demanded for Good D to increase by 60 % 60% , what

is the cross-price elasticity of the two goods? Round your answer to one decimal place. What is the relationship between the two goods? no relationship substitutes complements
Business
2 answers:
Natalka [10]3 years ago
7 0

Answer:

1.2  substitutes is the relationship between the two goods.

Explanation:

Paha777 [63]3 years ago
6 0

Answer:

Cross price elasticity = percent change in the quantity demanded of good D / percent change in the price of good C = 60% / 50% = <u>1.2</u>

When the cross price elasticity between two groups is higher than 1, the goods are <u>substitute</u> of each other. This means that an increase in the price of good C will increase the quantity demanded of good D.

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. How does analyzing fixed and variable costs help you to set a sale price that will generate profit? 2. How is profit affected
ELEN [110]

Answer:

1. Apart from helping to know the average cost of a product, analyzing fixed and variable cost will help to derive the break even point.

2. Profit will go down

Explanation:

1. The size of the selling price and the variable cost determine contribution per unit of a product. Contribution per unit is Price minus variable cost. This shows the  contribution of sales revenue towards covering the fixed cost of a product.

2. Relevant range is the estimated or budgeted activity level which defines a business volume of production or operation, it is both maximum and minimum threshold within which the entity must operate to expect certain level of cost and revenue.

Sometimes fixed costs are fixed within a relevant range of activities and outside such range, fixed cost may become variable, which will all things being equal impact negatively on the price.

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4 0
3 years ago
Evergreen Corporation distributes land with a fair market value of $200,000 to its sole shareholder. Evergreen's tax basis in th
Lady_Fox [76]

Answer:

True

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As for calculating the gain or loss on distribution of any asset, in any case the company shall consider the fair market value at the time of distribution, and accordingly, the gain or loss shall be:

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Here, in the given instance

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Therefore, the statement is True

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3 years ago
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