1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Margarita [4]
3 years ago
14

Suppose the cross-price elasticity of demand between goods X and Y is 4. How much would the price of good Y have to change in or

der to increase the consumption of good X by 20 percent?
Business
1 answer:
boyakko [2]3 years ago
3 0

Answer:

Increase by 5%.

Explanation:

Given that,

cross-price elasticity of demand between goods X and Y = 4

Percentage increase in consumption of good X = 20 %

cross-price elasticity of demand = Percentage change in quantity demanded for good X ÷ Percentage change in price of good Y

4 = 20 ÷ Percentage change in price of good Y

Percentage change in price of good Y = 20 ÷ 4

                                                                = 5%

Therefore, the price of good Y must be increase by 5% in order to increase the consumption of good X by 20 percent.

You might be interested in
Keith enjoys cutting hair and he just graduated from a cosmetology program. He has opened up his own shop, but it has not grown
marysya [2.9K]

Answer:

Franchises.

Explanation:

A franchise is formed when a third party is given the right to market products using the brand name of a parent company. There is usually an agreement between the parent company and the third party on profit sharing from the franchise.

In this scenario Keith wants to try a brand recognition of a national chain, but he wants to stay in his local area and be the owner of the shop.

The best option is to form a franchise where he can use the national brand to grow his business locally.

3 0
3 years ago
Stock Y has a beta of 1.40 and an expected return of 14.8 percent. Stock Z has a beta of .85 and an expected return of 11.3 perc
tresset_1 [31]

Answer:

Stock Y has overvalued and Stock Z as undervalued

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

For Stock Y

= 4.85% + 1.40 × 7.35%

= 4.85% + 10.29%

= 15.14%

For Stock Z

= 4.85% + 0.85 × 7.35%

= 4.85% + 6.2475%

= 11.0975%

The (Market rate of return - Risk-free rate of return) is also called market risk premium and the same is applied in the answer

As we see the expected return of both the stock So, Stock Y has overvalued and Stock Z as undervalued

4 0
3 years ago
Without creating a separate business organization, Reynold starts up and assumes the financial risk of, Sole Savers, a new, pre-
dexar [7]

Answer:

C: a franchisee

Explanation:

One of the responsibilities of a franchisee is to bear risk of the franchisor.

A franchise is a business relationship where a firm goes into agreement with another firm to represent the former in another geographical region or service. The franchisor is the parent company while the franchisee is the independent agent.

5 0
3 years ago
Un trabajador que gana $ 265 diarios, trabaja el domingo que no es su día de descanso, $ 21 de despensa, trasporte $ 25 pagado e
valentinak56 [21]

Responder:

Explicación:

Esta pregunta no solicitó qué responder, sin embargo, podemos conformarnos con la información que se nos proporcionó.

paso uno:

datos dados

Ganancias por día = $ 265

nos dicen que también trabaja los domingos

esto significa que trabaja los 7 días de la semana y los 365 días del año.

El 12% de las ganancias es para ahorros = 12/100 * 265

0,12 * 265 = $ 31,8

también se nos dice que lleva 3 años en servicio

por lo tanto, el número total de días es = 365 * 3 = 1095 días

La ganancia total por día durante tres años = 265 * 1095 = $ 290,175

Segundo paso:

Costo total de comestibles durante 3 años = 21 * 1095 = $ 22,995

Costo total de transporte durante 3 años = 25 * 1095 = $ 27,375

Ahorro total durante 3 años = 31,8 * 1095 = $ 34,821

Costo total de dos comidas durante 3 años = 26 * 1095 = $ 28,470

Paso tres:

Por lo tanto, la deducción total de sus ganancias durante 3 años es

= 22,995 + 27,375 + 34,821 + 28,470 = $ 113661

Y el saldo disponible será 290,175-113661 = $ 176514

5 0
3 years ago
Gains in income and wealth translate into an increased likelihood of having good health, showing a clear link between health and
a_sh-v [17]
It’s not for African Americans as a group even with higher levels of income and education.
7 0
3 years ago
Other questions:
  • Publisher problem: Full court press inc buts slick paper in 1525 pound rolls for textbook paper. Annual demand is 1800 rolls. Th
    15·1 answer
  • Bond P is a premium bond with a coupon rate of 9.2 percent. Bond D is a discount bond with a coupon rate of 5.2 percent. Both bo
    6·1 answer
  • The Allowance for Bad Debts account had a balance of $7,300 at the beginning of the year and $10,100 at the end of the year. Dur
    8·1 answer
  • Explain the following statement: Marketing is more than just promotion.
    5·2 answers
  • A meteor is approaching Earth. Which statement about its motion is true?
    13·1 answer
  • 1. Why do companies frequently expand their business operations into other countries?
    6·1 answer
  • Hau Lee​ Furniture, Inc., spends 45​% of its sales dollars in the supply chain and finds its current profit of ​$35,000 inadequa
    10·1 answer
  • Suppose that a small family farm sold its output for $100,000 in a given year. The family spent $25,000 on fuel; $40,000 on seed
    6·1 answer
  • A company is considered a price setter when: ____________
    15·2 answers
  • Hope you have good day
    8·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!