1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Pachacha [2.7K]
3 years ago
9

An increase in the price of hot dogs from $1.50 to $2.10 per pound increased the average number of burgers demanded per week fro

m 300 to 360. Assuming that all other economic variables were held constant, what is the cross-price elasticity of demand between hot dogs and burgers? What does this elasticity tell you about the relationship between the two?
Business
1 answer:
timama [110]3 years ago
7 0

Answer:

0.5

They are substitute goods.

Explanation:

Cross price elasticity of demand measures the responsiveness of quantity demanded of good A to changes in price of good B.

Percentage change in quantity demanded of burgers = (360 - 300) / 300 = 0.2 = 20%

Percentage change in price of hot dog = (2.10 - 1.50) / 1.5 = 0.4 = 40%

Cross price elasticity of demand = percentage change in quantity demanded/ percentage change in price

20 / 40 = 0.5

Elasticity of demand is less than 1, so demand is inelastic.

Also, the cross price elasticitiy is positive, so the goods are substitutes goods.

I hope my answer helps you

You might be interested in
the main reason suppliers can offer quantity discounts is that,shipping and handling costs per unit are reduced when customers b
Over [174]
Of the packaged deal. When you ship something, then you get that price. 
7 0
3 years ago
Lina wants to be a lawyer for her future career. Which extracurricular activity would be the most helpful? teacher’s aide marchi
Aleksandr [31]
I believe your answer would be C. Speech and Debate. Being a lawyer requires lots of debate, and speech to support your answer and make it more clear. 
3 0
3 years ago
Read 2 more answers
With only two goods, if the income effect is in the same direction as the substitution effect then the good is ____.
Leya [2.2K]

Answer:

Normal good

Explanation:

Income effect Is change in quantity demanded when the consumers purchasing power change as a result of a change in real income.

Substitution effect is when quantity demanded falls as a result of rise in price of a good which leads consumers to purchase cheaper alternatives.

A normal good is a good whose demand increases as income increases.

If the price of a normal good falls, the real purchasing power of the consumer increases and the consumer buys more of the good. Also, the consumer substituites from more expensive alternative goods to the more cheap normal good. The income and substitution effect both move in the same direction.

7 0
3 years ago
Kenneth Company uses activity-based costing. It budgets $1,650,000 of overhead cost to sustainably dispose of 6,600 tons of haza
Shkiper50 [21]

The cost of hazardous waste disposal as part of Job 125 using activity-based costs is $2,500.

<em>$1,650,000 / 6,600 tons = $250/tonHazardous waste disposal = 10 tons × $250 per ton = $2,500</em>

<em />

<em />

A company is a prison entity shaped by means of a group of individuals to engage in and function as a commercial enterprise—business or business—organization.

A company may be organized in various ways for tax and monetary legal responsibility functions depending on the company law of its jurisdiction.

There are 3 not unusual varieties of companies—sole proprietorship, partnership, and business enterprise—and each comes with its very own set of blessings and downsides.

Learn more about the company here:-brainly.com/question/24448358

#SPJ4

<em />

<em />

<em />

<em />

<em />

<em />

5 0
1 year ago
B. An electronic store
lukranit [14]

In electronics Store there is an electronics items such as wire,etc

5 0
3 years ago
Other questions:
  • The following data relate to direct materials costs for February: Materials cost per yard: standard, $1.93; actual, $2.03 Standa
    5·1 answer
  • Presented below are a number of transactions. Determine whether each transaction affects common stock, dividends, revenue, expen
    5·1 answer
  • Limited liability is a major advantage of a partnership as compared to a corporation. True or False
    14·1 answer
  • Alex works for a technology company. He also writes articles for his local newspaper's Web site on a contract basis. Which forms
    11·1 answer
  • Flagg records adjusting entries at its December 31 year-end. At December 31, employees had earned $12,000 of unpaid and unrecord
    11·1 answer
  • A person who wants to work in lodging, restaurant services, travel, amusements, and attractions wants to follow the career pathw
    5·2 answers
  • Suppose that borrowing is restricted so that the zero-beta version of the CAPM holds. The expected return on the market portfoli
    7·1 answer
  • The records of Lohse Stores included the following data: Inventory, May 1, at retail, $14,500; at cost, $10,440 Purchases during
    13·1 answer
  • GDP is $12 trillion this year in a closed economy. Consumption is $8 trillion and government spending is $2 trillion. Taxes are
    5·1 answer
  • The Extreme Reaches Corp. last paid a $1.50 per share annual dividend. The company is planning on paying $3.00, $5.00, $7.50, an
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!