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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.

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External benefits in consumption refer to benefits accruing to those a. who bought and consumed the product.b. who are selling t
Sphinxa [80]

Answer:

The correct answer is d) other than the ones who consumed the product.

Explanation:

An external benefit happens when producing or consuming a good or service, causes a benefit to a third party or person.

For example:

When a constructor builds a new block of apartments, the developer should build access roads to the new construction. The external benefit appears when these roads can be used by the residents of other buildings and the neighbors.

3 0
3 years ago
The direct write-off method records bad debt expense only when an account becomes uncollectible, which is not always in the same
Alchen [17]

The direct write-off method violates the <u>matching principal</u>, which says that revenues and expenses are recorded in period that they occur (not necessarily when they are collected/written off).

5 0
3 years ago
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Answer:

$101,500

Explanation:

Net Sales    $2,030,000

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The amount of uncollectible accounts to be reported in income statement shall be $101,500

7 0
3 years ago
A production system uses kanban cards to control production and movement of parts. one work center uses an average of 40 pieces
Kobotan [32]
Given:
D = 40 pcs /hour
T = 36/60 = 0.60 hours
X = 0.20 
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Find the value of N.

N = DT (1 + X) / C 
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N = [24 (1.20)] / 10
N = 28.8 / 10
N = 2.88 or 3

3 containers should be used to support the operation.
8 0
3 years ago
Read 2 more answers
You want to go the Six Flags amusement park. The ticket price to enter and enjoy the rides in Six Flags is $65. You live in Rich
Lyrx [107]

Answer:

Results are below.

Explanation:

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Opportunity cost= 12*4 + 25

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4 0
3 years ago
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