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KiRa [710]
3 years ago
7

The owner of Christie’ Bookstore is looking into the sales of its Health & Fitness magazine section. She finds that her equi

librium is at 1000 magazines per month sold at an average price of $4.25 per magazine. When the average price of these Health & Fitness magazines rose to $4.95 each, the quantity demanded fell to 900 magazines per month, while the quantity supplied to her increased to 1250 a month.
a. Draw an appropriate diagram for Christie’s original Health & Fitness magazine market.
b. Calculate the price elasticity of demand for the Health & Fitness magazines between prices $4.25 and $4.95. Is it elastic or inelastic? How do you know?
c. Calculate the price elasticity of supply for the Health & Fitness magazines between prices $4.25 and $4.95. Is it elastic or inelastic? How do you know based on your answer?
d. Explain what factors would affect the elasticity of demand for Health &Fitness magazines.
e. Christie also notices that when the average price of the Health & Fitness magazines rose from $4.25 to $4.95, the quantity of nutritious snack bars sold at the checkout register fell by 12%. Calculate the cross elasticity of demand between the two goods. Based on your answer, are they substitutes or complements?
Business
1 answer:
marusya05 [52]3 years ago
8 0
I believe if I remember correctly it was c
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anygoal [31]

Answer:

$78,300

Explanation:

COMPUTATION OF GOODS AVAILABLE FOR SALE AT COST

                                                                         $        

Beginning inventory                                  80,000

Purchases                                              <u>     65,000     </u>

Goods available                                 <u>      145,000     </u>    

COMPUTATION OF GOODS AVAILABLE FOR SALE AT RETAIL PRICE

                                                                         $        

Beginning inventory                                 130,000

Purchases                                              <u>    120,000     </u>

Goods available                                 <u>     250,000     </u>  

Ending inventory at cost = (Cost/Retail Ratio) x Year-end Inventory at retail price

                                         =($145,000/$250,000) x $135,000

                                          = 58% x $135,000

                                           = $78,300

                                                                                                 

6 0
3 years ago
Briefly explain whether each of the following is primarily a microeconomic issue or a macroeconomic issue.
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Answer: Micro; Macro; Macro; Micro.

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Economics is divided into two main segments which are microeconomics and macroeconomics. It should be noted that microeconomics deals with study of individuals and the firms while macroeconomics studies the while economy and looks at decisions that are made by governments and countries.

a. The effect of higher cigarette taxes on the quantity of cigarettes sold.

This is a microeconomic issue as one entity is being discussed which is cigarette and the issue is related to just one particular industry.

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This is a macroeconomic issue as taxes affects the whole economy. The whole nation is affected by this decision.

c. The reasons for the economies of East Asian countries growing faster than the economies of sub-Saharan African countries.

This is a macroeconomic issue as it relates to different countries.

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This is a microeconomic issue as the issue affects just the airline industry.

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Invisible Hand School of Social Responsibility Group of answer choices Advises managers to be responsible to shareholders by bei
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Answer:

The right alternative is Option b (Role of...............................shareholders only).

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Other selections are not comparable to just the example throughout the question. Therefore this option seems to be the appropriate one.

6 0
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Who is the primary regulator over the<br> mortgage banking industry?
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The primary regulator over the mortgage banking industry in the United States is the Office of the Comptroller of the Currency (OCC).

<h3>What does the Office of the Comptroller of the Currency (OCC) do?</h3>

It was established by the U.S. government to oversee all national banks in the United States.

This means that it is the regulatory agency for any type of banking on the national level including mortgage banks.

Find out more on the Office of the Comptroller of the Currency (OCC) at brainly.com/question/1075384.

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Answer:

d. Absenteeism significantly increases costs.

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