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BartSMP [9]
3 years ago
11

Suppose Pump-U-Up lowers the price of its gym membership by 10 percent and as a result, Sweat-It-Out experienced a 16 percent de

cline in its gym membership. What is the value of the cross-price elasticity
Business
1 answer:
konstantin123 [22]3 years ago
5 0

Answer:

The Cross elasticity of demand will be the change in demand at Sweat-it-out divided by the change in price at Pump-U-Up

=-0.16/-0.1

= 1.6

Explanation:

The Price decrease from Pump-U-up = 10%

And the resultant decline in Gym membership at sweat-it-out is 16%

The Cross elasticity of demand will be the change in demand at Sweat-it-out divided by the change in price at Pump-U-Up

=-0.16/-0.1

= 1.6

A Positive Cross - Price elasticity indicates both Gyms are close substitutes of one another.

An attempt by one to lower its price will directly impact negatively in membership of the other.

The strategy often adopted in such line of Business is to keep prices at Par or offer distinctive services outside of the traditional, e.g include a Spar into the gym membership, or access to discounted toning or body building products etc.

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On December 31, 2019, Spearmint, Inc., issued $450,000 of 9 percent, 3-year bonds for cash of $461,795. After recording the rela
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Answer:

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Explanation:

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interest expense:    18.284,17‬

3 0
3 years ago
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The concept of utility is fundamental to utilitarianism and describes the a. optimal distribution of wealth in society. b. level
alisha [4.7K]

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Roger remembers from a business class he took years ago in college that there are several business forms to choose from. Each fo
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Answer:

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