Part A:
The number of outcomes that each of them will have to choose anyone at random is calculated below.
n = 3 x 3 = 9
This is because, Al will have 3 choices and similarly, Bill will also have three choices. These outcomes are as written below.
S = (1,1), (1,2), (1,3), (2, 1), (2,2), (2, 3), (3, 1), (3, 2), and (3,3)
Part B: To make the same choice, there will only be three outcomes. These are:
S = (1, 1), (2, 2) and (3, 3)
Part C: If neither of them will vote for 2, there will only be four outcomes. This is because each of them will only have two choices. These are:
S = (1, 1), (1, 3), (3, 1), and (3,3)
A reduction in retained earnings of $2,950,000.
$37(500,000 x .14) = &2,590,000
<span>After decreasing Nominal & Real GDP, the Federal Reserve will engage in Contractionary Monetary Policy. The answer is letter B. IF the Federal Reserve increases the amount of monetary growth, the economic theory shows that it will decrease in the short run but will increase eventually in the long run from their initial value.</span>
Answer:
Option c = They are Substitutes and have cross price elasticity of 1.67
Explanation:
Cross-Price Elasticity = <u>%change in Quantity demanded of good X</u>
%change in Price of good Y
% change in Quantity Demanded of good X = <u>Q2-Q1 </u> × 100
(<u>Q1+Q2)</u>
2
% change in Quantity Demanded of good X =<u> 40-20 </u> ×100
<u>(20+40)</u>
2
% change in Quantity Demanded of good X = 66.67%
% change in price of good Y = <u>P2-P1</u> × 100
<u> ( P1+P2)</u>
2
Last month Total Revenue = $100
Total Units = 50
Last month Price / unit = 100/50 = $2
This Total Revenue $120
Total units 40
This monthPrice / unit = 120/40 = $3
% change in price of good Y=<u> 3 - 2 </u>× 100
<u>3+2</u>
2
% change in price of good Y =<u> 1 </u>× 100
2.5
% change in price of good Y = 40%
Cross-Price Elasticity =<u> 66.67</u>
40
Cross- Price Elasticity = 1.67
Since its greater than 1 its Cross price elasticity of Substitute
also as the price of good y increased from $2 to $3 the quantity demanded of good x increased although its price remained constant which indicates its a substitute good as people preferred buying good x instead of good y
