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Kay [80]
3 years ago
13

Suppose that when the price of good X falls from $10 to $8, the quantity demanded of good Y rises from 20 units to 25 units. Usi

ng the midpoint method,
Business
1 answer:
White raven [17]3 years ago
4 0

Answer:

The question is incomplete; Calculate the price elasticity of demand

The answer is -2 showing that the Price Elasticity of Demand for the good in question is highly elastic.

Explanation:

Price Elasticity of Demand  =  percent change in quantity  / percent change in price

percent change in quantity =  {Q 2 − Q 1 / [( Q 2 + Q 1 ) ÷ 2]} × 100

percent change in price  = {P 2 −  P1 / [( P 2 +  P1 ) ÷ 2]} × 100

percent change in quantity= {25 − 20/ [(25 +20) ÷ 2]} × 100= 22.2%

percent change in price  = {8-10 / [( 8+10) ÷ 2]} × 100 = -11.11%

Price Elasticity of Demand  = 22.2% / -11.11%= <u>-2</u>

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The principle of diversification teaches us that using two securities it is always possible to find a portfolio with no short po
Oliga [24]

Answer:

C. Less than the variance of each asset, except when the two assets are perfectly positively correlated.

Explanation:

In diversification, there is the less risk in the portfolio that can be determined by the standard deviation. Also the risk can decrease at the time when the asset is lower than the perfect correlation and the same should be place in portfolio. Now if the asset along perfect positive correlation place in the portfolio so the the portfolio risk could be large than the risk of the individuals assets

6 0
2 years ago
What political reasons Government intervention in markets​
Varvara68 [4.7K]

Answer:

The main reasons for policy intervention by the government are:

To correct for market failures.

To achieve a more equitable distribution of income and wealth.

To improve the performance of the economy.

Explanation:

To correct for market failures: This is achieve by creating regulation institutions for the most important sectors in any given economy e.g. Federal Reserve, Treasury Department

To achieve a more equitable distribution of income and wealth: This is the aim of a develop economy to allocate the resources where needed and for that some countries rely in the government capability to prevent Monopoly creation or to protect its Internal Labor market.

To improve the performance of the economy.: In order to meet the economical agenda of any given government the institutions use variation on the interest rate, the government expenditure or the tax policies.

6 0
3 years ago
The Back Room just paid an annual dividend of $1.50 a share. The firm expects to pay dividends forever and to increase the divid
umka2103 [35]

Answer:

$26.05

Explanation:

according to the constant dividend growth model

price = d1 / (r - g)

d1 = next dividend to be paid = d0 x (1 + growth rate)

d0 = dividend that was just paid

r = cost of equity

g = growth rate

1.5 x (1.045^6) / 12 - 4.5 = $26.05

6 0
3 years ago
Which of the following is not a form of business combination?: (A) Acquisition. (B) S Corporation. (C) Conglomerate. (D) Merger.
diamong [38]

Answer:

<h2>b.corporation is answer </h2>
8 0
3 years ago
A student comments to his roommate that the only way he will be able to pass his final exams is to not sleep for the next three
Varvara68 [4.7K]

Since the student comments to his roommate that the only way he will be able to pass his final exams is to not sleep for the next three days, one can say that the  statement suggests that option c) there is a trade off between studying and sleep.

<h3>What means trade-off?</h3>

The Definition of trade-off is known to be the act or the process that is used in equalizing the factors all of which are not able to achieve at the same time such as the trade off between studying and sleep.

Note that the term  trade-off is seen as a point where there is a situational decision that entails the act of lowering or losing one quality, quantity and even  property so that one can be able to get  other aspects or things,

Therefore, Since the student comments to his roommate that the only way he will be able to pass his final exams is to not sleep for the next three days, one can say that the  statement suggests that option c) there is a trade off between studying and sleep.

Learn more about trade off from

brainly.com/question/7072776

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A student comments to his roommate that the only way he will be able to pass his final exams is to not sleep for the next three days. This statement suggests that a) students are more concerned about good grades than health b) society should value sleep more c) there is a trade off between studying and sleep d) society should value good grades more than sleep

4 0
1 year ago
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