Answer:Please refer to Explanation
Explanation:
Cross Price Elasticity of Demand is a very useful tool in Economics to ascertain if goods are compliments or Substitutes.
Cross Price Elasticity of Demand (CPSD) measures the change in demand in one good due to a change in price is the other good.
If the CPSD is negative then the goods are Compliments meaning that they are used together which is why when the price of one good goes down, the demand of the compliment goes up because more of the original good will be bought due to the lower price.
If the CPSD is Positive, it means that they are Substitutes and a Decrease in price in one good leads to a decrease in demand for the other good because people will demand less of it and switch to the former (now cheaper) good.
The formula is,
= % change in Quantity Demanded of Product A /% change in Price of Product B
a. Splishy splashies and Flopsicles
CPSD = -18%/-1%
= 18%
The CPSD for both these products is 18% which is a positive figure. This means that they are Substitutes and <u>should not be marketed together. </u>
b. Splishy Splashies and Flopsicles
CPSD = 3%/-1%
= -3%
With the CPSD being a negative figure here, these goods are Compliments.
Splishy Splashies and Flopsicles <u>should be Marketed together</u> as they compliment each other.
Answer:
The correct option is option e)
not trade movie tickets for basketball tickets because his marginal utility per dollar spent on movie tickets is greater than his marginal utility per dollar spent on basketball tickets.
Explanation:
The cost of one movie ticket is $8 then Bills' four tickets will be $32.
The cost of a basketball ticket is $28.
Therefore if bill should trade 4 movie tickets for a basketball ticket he will make a loss of $ 4 so it is advisable for bill not to trade movie ticket for basketball ticket. And again his marginal utility per dollar spent on movie tickets is greater than his marginal utility per dollar spent on basketball tickets.
Answer:
Angel Investors
Explanation:
An angel investor is the one who provides capital to entrepreneurs so that they are able to invest in the new ideas and businesses which are in the early stage and will generate value in the near future. So angel investors are basically named angel because for the startups its reallt very difficult to finance their businesses because banks don't provide funds to startups because these startups have very fewer resources to compete in the market and as a result they fail. So the person who assists here is really an angel.
With an annual increase of 4% each year compounded, tuition would cost 9,421.83.
