suppose Tinsel Town Videos lowers the price of its movie club membership by 10 percent and as a result, CineArts Videos experien
1 answer:
Answer: The value of cross price elasticity is 1.6.
Step-by-step explanation:
Since we have given that
Percent change in price = 10%
Percent change in quantity = 16%
So, we need to find the cross price elasticity between the two movie club memberships.
As we know the formula for cross price elasticity :
Hence, the value of cross price elasticity is 1.6.
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Answer:
x-int = 18
y-int = -9/2
Step-by-step explanation:
Use slope-intercept form y=mx + b
To find the slope, substitute the two points into the slope formula and solve.
Substitute a random point (2,-4) and m=1/4 into slope-intercept form
y = mx+b
-4 = 1/4 (2) + b
-4 = 2/4 + b
-4 = 1/2 + b
Isolate b to solve
b = -4 - 1/2
b = -8/2 - 1/2
b = -9/2 <= this is the y-intercept
b is the y-intercept in slope-intercept form
Substitute b= -9/2 and m=1/4 to get the equation of the line.
y = 1/4 x - 9/2
Substitute y for 0 to find the x intercept
y = 1/4 x - 9/2
0 = 1/4 x - 9/2
9/2 = 1/4 x
x = (9/2) / (1/4)
x = (9/2) X (4/1)
x = 36/2
x = 18