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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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Minerals are structurally simple, inorganic substances that exist as groups of one or more of the same atoms. In chemistry, what
olga_2 [115]

Answer:

The substance does not contain carbon .

Explanation:

Usually, an inorganic substance is a type of chemical substance that loses bonds with carbon-hydrogen, that is, a product that is not biological.

  • The difference, though, is not defined and accepted, and experts have varying views on the matter.
  • An inorganic compound, any material which generally combines two or more chemical compounds other than carbon, almost always in clear and obvious percentages.

5 0
3 years ago
Read 2 more answers
2001 was a bad year for Red Delicious apple farmers in Washington State. The market price for Red Delicious apples was $10.61 pe
Oksanka [162]

Answer:

Check the explanation

Explanation:

According to this given situation in the question above, we will have to put into consideration the average variable cost and the expectation about the price of red delicious apples in the market.

A whole lot of apple farmers did not harvest the apples directly from their trees, due to the fact that their average variable cost is bigger than the price of the apples, which at the end resulted to losses as they couldn’t even cover their average fixed costs. on the other hand, a lot of other apple farmers chose to bulldoze their apple trees, as the price was bigger than their average variable cost and they were hoping for a rise in the apple prices in future, which can lead to a profitable apple farming future.

3 0
2 years ago
Assume that the educational savings account will return a constant 9%. The parents deposit $2400 on their daughter's first birth
ser-zykov [4K]

Answer:

the amount available is $160,463

Explanation:

The computation of the amount available for the daughter's college expenses on her 18th birthday is shown below:

= First deposit × ((1 + rate of interest)^number of years - (1 + growth rate)^number of years) ÷ (rate of interest - growth rate)

= $2,400 × ((1 + 0.09)^18 - (1 + 0.07)^18) ÷ (0.09 - 0.07)

= $160,463

hence, the amount available is $160,463

4 0
2 years ago
Speed World Cycles sells high-performance motorcycles and motocross racers. One of Speed World’s most popular models is the Kazo
Verdich [7]

Answer:

Speed World Cycles

 

a.                                        Average Cost       FIFO              LIFO

Cost of goods sold           $20,100           $19,900       $20,300

Ending inventory              $20,100          $20,300       $19,900

b-1. FIFO will result in Speed World Cycles reporting the highest net income for the current year, because of the reduced cost of goods sold.

b-2. LIFO minimizes the income taxes owed by Speed World Cycles for the year, because it reduces the income before taxes.

b-3. Yes.  However, the cost flow assumptions self-correct in later years, by which time it is not allowed to be jumping from one cost flow assumption to another.

Explanation:

a) Data and Calculations:

Purchase Date    Units Purchased   Unit Cost     Total Cost

July 1                             2                    $ 4,950        $ 9,900

July 22                          3                       5,000          15,000

Aug. 3                           3                        5,100          15,300

Total                             8                                       $ 40,200

July 28 Sold                4                          

September 30            4 (8 - 4)

Average cost = $40,200/8 = $5,025

a-1. Cost of goods sold = $20,100 (4 * $5,025)

Ending inventory = $20,100 (4 * $5,025)

a-2. FIFO:

Ending inventory = $20,300 (3 * $5,100 + 1 * $5,000)

Cost of goods sold = Cost of goods available minus cost of ending inventory

= $40,200 - $20,300

= $19,900

a-3 LIFO:

Cost of goods sold = $20,300 (3 * $5,100 + 1 * $5,000)

Ending inventory = Cost of goods available minus cost of goods sold

= = $40,200 - $20,300

= $19,900

6 0
3 years ago
On May 11, Sydney Co. accepts delivery of $40,000 of merchandise it purchases for resale from Troy Corporation. The merchandise
Doss [256]

Answer:

<u>Try records:</u>

Accounts receivables 40,000 debit

      Sales revenue                 40,000 credit

COGS                          30,000 debit

        Merchandise               30,000 credit

Sales returns                1,400 debit

    Accounts receivable      1,400 credit

Merchandise        800 debit

       COGS                      800 credit

Cash                     37,442 debit

Sales discount       1,158 debit

        Accounts receivables      38,600 credit

<u>Sidney records:</u>

Merchandise          40,000 debit

         Accounts Payable 40,000 credit

Account payable            1,400 debit

    Merchandise                     1,400 credit

Accounts payable      38,600 credit

          Cash                           37,442 debit

          Merchandise                 1,158 debit

Explanation:

account balance 40,000 - 1,400 = $ 38,600

discount 38,600 x 3% = $ 1,158

cash due: 38,600 - 1,158 = 37,442‬

7 0
2 years ago
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