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pickupchik [31]
2 years ago
13

Suppose the demand curve for a product is given by Q = 11 - 2P + 3Ps Where P is the price of the product and Ps is the price of

a substitue good. The price of the substitute good is $2.80. Suppose P = 1.20. what is the price elasticity of demand? What is the cross price elasticity of demand?
Business
1 answer:
Alex17521 [72]2 years ago
4 0

Answer: (a) -0.1412

(b) 0.4941

Explanation:

Q = 11 - 2P + 3Ps

Where,

P - price of the product

Ps - price of a substitute good

Ps = $2.80

P = $1.20

\frac{dQ}{dP} = -2

\frac{dQ}{dPs} = 3

Price\ elasticity\ of\ demand= \frac{P}{Q}\times\frac{dQ}{dP}

Price\ elasticity\ of\ demand= \frac{1.20}{11-2P+3Ps}\times(-2)

Price\ elasticity\ of\ demand= \frac{1.20}{11-2\times1.2+3\times2.8}\times(-2)

                                                     = \frac{-2.4}{17}

                                                     = -0.1412

Cross\ Price\ elasticity\ of\ demand= \frac{Ps}{Q}\times\frac{dQ}{dPs}

                                                                 = \frac{2.8}{17}\times3

                                                                 = 0.4941

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Answer:

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(b) Here child as per the Erikson's theory is in the stage of Autonomy vs. Shame. In this stage, the children feel that to get Parents attention they have to behave in a certain manner. In this case, I would try to ignore her activities and would make her engage in some other activities of her interest like toys, games or videos.

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Finley Corporation had income from continuing operations of $10,600,000 in 2014. During 2014, it disposed of its restaurant divi
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Answer:

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Loss of discontinued operation

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Loss of diner disposal

division (net of tax)

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504,000

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Start sharing income

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3 0
2 years ago
A monopoly industry:A. has very significant barriers to entry. B. faces a downward sloping demand curve. C. produces a product f
Kryger [21]

Answer:

The correct answer is option E.

Explanation:

A monopoly is a market where there is only single producer or seller. There are restrictions on entry in the market. The firms in the monopoly are price makers. That is why they have a downward sloping demand curve.

There are no close substitutes for the product and there is only one seller in the monopoly.

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7 0
3 years ago
The use of sharp, temporary price cuts as a form of _________________ would enable traditional US automakers to discourage new c
svlad2 [7]

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The correct answer is predatory pricing.

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3 years ago
Read 2 more answers
Exercise 8-07 At December 31, 2019, Pharoah Company Company had a credit balance of $18,100 in Allowance for Doubtful Accounts.
Alja [10]

Answer:

Entries are given below

Explanation:

DATA:

Opening Balance in the allowance for doubtful debt = $18,100

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Entry                                                       DEBIT        CREDIT

Allowance for Doubtful Accounts $11,800  

Accounts Receivable                                               $11,800

At December 31, 2020, an aging schedule indicated that the balance in Allowance for Doubtful Accounts should be $23,700

Entry                                                       DEBIT        CREDIT

Bad debt expense                                $17,400

Allowance for doubtful debt                                    $17,400

           

Working

Balance before adjustment = $18,100 - $11,800

Balance before adjustment = $6,300

After Aging schedule indication

Adjustment  = $23,700 - 6,300

Adjustment = $17,400

3 0
3 years ago
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