If the coefficient of demand for the SUV is 0.75 this means that it has a relatively inelastic demand (<1). This means that there is only a little change in demand when prices change. Elastic demand (>1) on the other hand has greater changes in demand when prices change; they have lots of substitutes.
So when the price of SUV rise by 15%, and it has a coefficient of 0.75, we can expect only 11.25% decrease in its demand. Still very small. This is because SUVs do not have many substitutes for it.
Formula: (x/15%)=0.75
Then simply solve for x -> x = (0.75)(0.15) = 11.25%
Answer;
90 days
Minor violations may be granted upwards of 90 days for correction
Explanation;
-Violations are categorized as either critical or general.Critical violations are those that create or have the potential to create an imminent risk to public health.The Food Code requires that critical violations be further listed as either major or minor with regard to their degree of risk.
-A major violation poses an imminent health hazard that warrants immediate correction and may require closure of the food facility. A minor violation does not pose an imminent health hazard, but does warrant correction.
-Major critical violations do require either closure or immediate correction with a timely follow up inspection to ensure compliance. Minor violations on the other hand, may be granted upwards of 90 days for correction
The demand is likely to become more elastic
Hope this helps
Answer:
if the stock price is between $44.25 and $55.75
Explanation:
Given that, the investor net gain on premium from option is $1.25 + $4.5 = $5.75.
Thus, the investor has to buy at $50 and obligation to sell at $50 in August.
Hence, investor paid-off is shown as x, of Hug-Packing in August as below:
Spot price <$50: 5.75 - (50 - x) = x - 44.25
Spot price = $50: $5.75
Spot price > $50 : 5.75 - ( x -50) = 55.75 - x
Thus, the strategy will pay off only when:
(x - 44.25) > 0 and (55.75 - x) <0 or x is between $44.25 and $55.75.
