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nignag [31]
3 years ago
12

The cross price elasticity for coffee for a change in the price of tea is likely to be __________.

Business
1 answer:
Oduvanchick [21]3 years ago
7 0

Answer:

Positive

Explanation:

Coffee and tea are substitute goods. Therefore, the cross price elasticity of substitute goods is positive.

Positive cross price elasticity states that there is a direct relationship between the price of one good and the demand for its substitute good.

If there is an increase in the price of the coffee then as a result the demand for tea increases though the price of tea remains the same.

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Assume France and Mali can both produce grain and dates, and that the only limited resource is the farming labor force, meaning
soldi70 [24.7K]

Answer:

In France:

Farmer can produce = 10 metric tons of grain or 5 metric tons of dates in a season

In Mali:

Farmer can produce = 10 metric tons of grain or 25 metric tons of dates.

(1) Mali has the absolute advantage in producing dates because Mali produces more metric tons of dates than France from the same level resources.

(2) No country has an absolute advantage in producing grain because same amount of grain were produced by both the countries with the same level of resources.

(3) Opportunity cost of dates in France = \frac{10}{5}

                                                                 = 2 grain

Opportunity cost of dates in Mali = \frac{10}{25}

                                                       = 0.4 grain  

Therefore, Mali's opportunity cost of producing dates is lower than France, so Mali has a comparative advantage in producing dates.

(4) Opportunity cost of grain in France =  \frac{5}{10}

                                                                = 0.5 dates

Opportunity cost of grain in Mali = \frac{25}{10}

                                                      = 2.5 dates

Therefore, France's opportunity cost of producing grains is lower than Mali, so France has a comparative advantage in producing grains.                                          

7 0
3 years ago
If the money supply increases 12 percent, velocity decreases 4 percent, and the price level increases 5 percent, then the change
dimaraw [331]

Answer: Option (A) is correct.

Explanation:

Given that,

Money supply increases (M) = 12 percent

Velocity decreases (V) = 4 percent

Price level increases (P) = 5 percent

Real GDP (Y) = ?

According to the quantity theory of money,

Percent Change in M + Percent Change in V = Percent Change in P + Percent Change in Y

                                                         12% - 4% = 5% + Percent Change in Y

                                    Percent Change in Y = 8% - 5%

                                                                         = 3%

Therefore, change in real GDP must be 3%.

6 0
3 years ago
Average total cost is very high when a small amount of output is produced because.
Finger [1]

Answer:

When average fixed cost is large.

Explanation:

5 0
3 years ago
A city government is considering raising the local income tax to pay for improvements to government facilities. a private citize
soldi70 [24.7K]

The results of the survey will most likely suffer from wording bias.

Wording bias:

Wording bias, also called question-wording bias or “leading on the reader” (Gerver & Sgroi, 2017) happens in a survey when the wording of a question systematically influences the responses (Hinders, 2019).

Is wording bias a type of response bias?

Wording bias can come into effect here as well

This type of bias influences the entire gamut of responses from individual or multiple participants.

For instance, if the researcher knows the participant personally, even greeting them in a friendly manner can have a subconscious effect on the responses.

Learn more about this here:

brainly.com/question/28178415

#SPJ4

 

4 0
1 year ago
Read 2 more answers
A company wants to identify which of two production methods has the smaller completion time. One sample of workers is randomly s
Marina CMI [18]

Answer:

A. Matched Samples

Explanation:

Matched samples is a situation whereby participants are paired, sharing every other characteristics except the one under investigation. The idea behind this is to have more control over unwanted variables. In this case, the study is measuring two production methods and in order to control the unwanted variable and leave only the characteristic or variable under investigation which is the production method, the two method is carried out by the same workers each.

6 0
4 years ago
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