Answer
Price elasticiy of demand for business travelers: -0.16
Price elasticity of demand for vacationers: -0.29
Explanation:
To find the price elasticy of demand (PED) using the midpoint method, we use the following formula:
![PED = \frac{(Q2-Q1)/[(Q2+Q1)/2]}{(P2-P1)/[(P2+P1/2]}](https://tex.z-dn.net/?f=PED%20%3D%20%5Cfrac%7B%28Q2-Q1%29%2F%5B%28Q2%2BQ1%29%2F2%5D%7D%7B%28P2-P1%29%2F%5B%28P2%2BP1%2F2%5D%7D)
Where Q2 and P2 are the new quantity demanded and new price respectively, and Q1 and P1 are the old quantity demanded and price.
Plugging the amounts into the formula we obtain the results of the answer.
Because both results are in absolute value less than one (0.16 and 0.29), we can say that the PED of tickets, for both vacationers and Business traveleres, is relatively inelastic. (Demand falls less in proportion to the change in price).
The price elasticity of a good will tend to be larger if the fewer number of substitute goods will be available.
The cross elasticity of demand for substitute goods is always positive because the demand of one good increases at the time when the price for the substitute good increases however the cross elasticity of demand for complementary goods is always negative.
For example, if the price of coffee rises, the quantity demanded for tea which is the best substitute of coffee beverage will increase as consumers will switch to a less expensive but the substitutable alternative.
This is reflected in the cross elasticity of the demand formula, as both the numerator which is the percentage change in the demand of tea and denominator which is the price of coffee shows a positive increase.
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Answer:
The correct answer is A
Explanation:
Delegation is the term in accounting which is defined as the assignment of authority to some another person in order to carry out the particular activities. And the person or individual who delegate the work will remain accountable or responsible for the outcome or result of the work which is delegated.
So, in this case, Ruby need expertise of Katherine in writing a chapter and they signed a contract for the same but if Katherine delegates the work to Dana, then the delegation would not so effective as the duty involve the personal services.
Under the condition that country X can manufacture cars more cheaply. An absolute advantage devours in a country if it makes good over alternative country and uses a smaller amount of wealth to yield that good. The result of a country’s natural legacy is the absolute advantage. Another example is extracting oil in Saudi Arabia is pretty much just a matter of drilling a hole. Generating oil in other countries can is essential substantial exploration and costly technologies for drilling and extraction if certainly they have any oil at all. The United States devours about the richest farmland in the world which manufacture it at ease to grow corn and wheat than in many other countries. Guatemala and Colombia partake environment particularly suitable for growing coffee. Chile and Zambia have about of the world’s richest copper mines. As some have claimed that geography is destiny. Chile will bargain copper and Guatemala will harvest coffee and they will trade. When each country has a product others necessity and it can be manufactured with fewer resources in one country over another then it is easy to visualize all parties do good from trade. Thinking about trade just in relations of geography and absolute advantage is incomplete. Trade actually happens because of comparative advantage.
Answer:
PV=148135,68
Explanation:
PV Present Value
CF Cash Flow
r the periodic rate of return
n Number of periods
PV= CF/(1+r)n
PV= 176000/(1+9%)2
PV=148135,68
