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Lostsunrise [7]
3 years ago
10

The quantity demanded of cereal increased from 1,350 to 1,700 when the price of milk decreased from $2.05 to $1.65. What is the

estimated cross-price elasticity of demand for cereal? Include a minus sign if elasticity is a negative number. Round your answer to the nearest hundredth.
Business
1 answer:
Iteru [2.4K]3 years ago
8 0

Answer:

-1.33

Explanation:

Cross price elasticity of demand measures the responsiveness of quantity demanded of good X to changes in price of good Y.

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

Percentage change in quantity demanded = (1700 / 1350) - 1 = 0.2593 = 25.93%

Percentage change in price = (1.65 / 2.05) - 1 = -0.1951 = -19.51%

25.93% / -19.51% = -1.33

I hope my answer helps you

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Sales promotion mix element stimulates purchase directly through an incentive to buy, such as a coupon or rebate.

<h3>How does sales promotion work?</h3>
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A monopolist is solely responsible for sales of products to many buyers, such market is termed a monopoly market

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2 years ago
On January 1, a company issued and sold a $399,000, 9%, 10-year bond payable, and received proceeds of $394,000. Interest is pay
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           Interest Expense                          $18,205

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