All categories

3 years ago

For each of the following pairs, predict whether the cross-price elasticity of demand will be positive or negative:

Business

1 answer:

Dmitry_Shevchenko [17]3 years ago

3 0

Answer:

a) Positive.

b) Positive.

c) Negative.

Explanation:

a. Soap and hand sanitizer.- Positive cross elasticity of demand.

b. CDs and MP3s.- Positive cross elasticity of demand.

c. Sheets and pillowcases.- Negative cross elasticity of demand.

Cross price elasticity of demand are used as tool to measure the demand of one product by the change in price of related product like subtitute or complimentry goods and service. It is calculated by using ratio or percentage change in quantity demanded by percentage change in price of a related goods.

You might be interested in

Which of these are most likely to be victim of information systems incidents like hacking?

fenix001 [56]

C. Finacial is the answer.
Welcome

8 0

3 years ago

Barney hendricks is interviewing web developers for his company. over lunch, he tells you that his top candidate showed lots of

anastassius [24]

Barney appears to be very impressed by the candidate's non-verbal communication skills.

8 0

3 years ago

Read 2 more answers

A firm has $76,000,000 in debt, which accounts for 43% of their total funds raised; the after-tax cost of these funds is 6.10%.

Digiron [165]

11.55% is the weighted average cost of capital for these funds

Explanation:

Firm has 76000000 in debt and 100000000 in equity. Thus the proportion of debt =

= 76000000/(76000000 + 100000000)

= 43.18%

and proportion of equity = 1 - 43.18% = 56.82%

Therefore, WACC = 0.4318 * 6.1 + 0.5682 * 15.7

= 11.55%

7 0

3 years ago

Define return( rate of return).

elena-14-01-66 [18.8K]

Answer:

its returning the rate that was given out

i guess i jus gave it a try

6 0

3 years ago

Gary has an 80% LTV loan on his new $318,000 townhome with an annual interest rate of 4.125%. What’s his interest payment the fi

Mumz [18]

Answer:

interest amount = $874.50

Explanation:

given data

LTV loan = 80%

amount = $318,000

interest rate = 4.125% = 0.04125

to find out

interest payment the first month

solution

first we get here loan amount that is

loan amount = 80% of $318,000

loan amount = $254,400

now we get here interest amount for 1st month that is

interest amount = loan amount × interest rate × time period

put here value

interest amount = $254,400 × 0.04125 × $\frac{1}{12}$

interest amount = $874.50

3 0

3 years ago