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inna [77]
3 years ago
11

When the price of good A rises from ​$11 to ​$33​, the quantity of good A demanded decreases from 400400 to 200200 units a day a

nd the quantity of good C demanded increases from 150150 to 250250 units a day. From this​ information, we can determine that​ _______. A. the cross elasticity of demand is​ positive, so the two goods are substitutes B. the goods are complements because as the price of good A changes so does the quantity demanded of good C C. the cross elasticity of demand is less than​ 1, so the two goods are substitutes D. good C is a normal good because as the price of good A​ rises, people switch to good C

Business
1 answer:
Novay_Z [31]3 years ago
6 0

Answer:

The correct answer is option A.

Explanation:

The price of good A is initially at $11.

The initial demand of A  is 400 units.

The price increases to $33.

The demand of A , as a result, falls to 200 units.

The demand for good C is initially at 150 units.

With increase in price of A, the demand rises to 250 units.

The positive cross elasticity as given in the figure represents that the two goods are substitutes. When price of A increases, consumer will prefer its cheaper substitute. So, the demand for good C will increase.

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Anastaziya [24]
36,899 macdonalds i think in america
4 0
3 years ago
Read 2 more answers
Krepps Corporation produces a single product. Last year, Krepps manufactured 33,100 units and sold 27,800 units. Production cost
AfilCa [17]

Answer:

The correct answer is $95,400 lower than absorption costing.

Explanation:

According to the scenario, the given data are as follows:

Units manufactured = 33,100

Sold units = 27,800

So, Units in ending inventory can be calculated as follows:

Units in ending inventory = Units manufactured - Sold units

= 33,100 - 27,800 = 5,300 units

Now, Fixed manufacturing OH = $595,800

So, we can calculate the fixed manufacturing OH per unit by using following formula:

Fixed manufacturing OH per unit = $595,800 ÷ 33,100 = $18

So, Difference in net income for the year can be calculated as follows:

Net income difference = Fixed manufacturing OH per unit × Units in ending inventory

= $18 × 5,300 units = $95,400

Hence, The net income in variable costing is $95,400 which is lower than in absorption costing.

7 0
3 years ago
The price of bread goes up. What happens to DEMAND for butter?
nikklg [1K]

Answer:

A. The demand curve shifts to the left

Explanation:

Bread and butter are compliment goods. They offer the consumer a high utility when consumed together. An increase in demand for bread will increase the demand for butter.  Changes in the price of bread will affect the demand for butter.

An increase in the price of bread leads to a decrease in demand. Reduction in bread demand means that butter consumption will decline as there will be less bread to apply butter. A decrease in demand will prompt the demand curve to shift inwards.

3 0
3 years ago
Fred promises barney $25,000 to not open his proposed business in the same city. they sign a contract stating that fred promises
Vlad1618 [11]
Fred will either have to pay more than he proposed or Barney would be able to open his business in the same city
7 0
3 years ago
Luis has $170,000 in his retirement account at his present company. Because he is assuming a position with another company, Luis
serious [3.7K]

Answer:

Luis will have $ 1,153,675.657524 in his account at the time of his retirement.

Explanation:

Acording to the data Luis has $170,000 in his retirement account

His current account after 30 years at 4.5% compounded quarterly will be

Current account = $ 170,000(1 + (0.045/4))^(4*30)

Current account = $ 650,838.260724

Acording to the data Luis also plans to put $2000/quarter into the new account until his retirement 30 years from now.

The future value (FV) of the account will be

FV = 2000[(1 + (0.045/4))^(4*30) -1] / (0.045/4)  0.01125

FV = $ 502,837.3968

Therefore, to calculate how much will Luis have in his account at the time of his retirement we have to calculate the following:

Total amount = Current account+FV

Total amount = $ 650,838.260724 +  $ 502,837.3968

Total amount = $ 1,153,675.657524

Luis will have $ 1,153,675.657524 in his account at the time of his retirement.

4 0
3 years ago
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