Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
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Answer:
1.1 substitutes do not market together
-0.35 complements market together
Explanation:
1.1
-0.35
Cross price elasticity of demand measures the responsiveness of quantity demanded of good A to changes in price of good B.
If cross price elasticity of demand is positive, it means that the goods are substitute goods.
Substitute goods are goods that can be used in place of another good.
if the price of a good increases, the demand for the substitute increases and if the price of the good reduces, the demand for the substitute increases.
If the cross-price elasticity is negative, it means that the goods are complementary goods.
Complementary goods are goods that are consumed together
Cross price elasticity = percentage change in quantity demanded of good A / percentage change in the price of good B
Frizzles = -22% / -20% = 1.1
Mookies = 7 / -20 = -0.35
False because they make money for showing it
Answer:
Total budget = $53,330
Explanation:
<em>The total overhead is an example d of a mixed cost. A mixed cost is that made up of a variable portion and a fixed portion. The variable portion is driven by the activity level- machine hours. While the fixed portion is independent of the machine hours</em>
Fixed overhead = 15,300 + 5,600+ 6600 = 27500
Variable overhead per hour = (54,560 -27500)/2200
= $12.3 per hour
Budget for 2,100 machine hours
= 27,500 + ($12.3× 2100)
= $53,330
