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3 years ago

What is a substitute good

Business

1 answer:

nasty-shy [4]3 years ago

4 0

Answer:

What is a substitute good?

substitute good is a type of good that has an alternative i.e another good can be used to compare with it

Explanation:

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Suppose that the price elasticity of demand for cereal is -0.75 and the crossprice elasticity of demand between cereal and the p

professor190 [17]

Answer: Price of cereals must fall by 12%

Explanation:

A 10% rise in the price of milk will lead to a fall in quantity demanded by =-0.9 * 10= 9%.

To prevent the demand for cereals from falling by 9%, the price of cereals must fall by

$E = \frac{Percentage change in Qd}{Percentage change in price}$

$Percentage change in price = \frac{Percentage change in Qd}{e}$

$Percentage change in price = \frac{9}{-0.75}$

$Percentage change in price = -12%$

Thus, to offset the effect of a 10% rise in price of milk, the price of cereals must fall by 12%.

8 0

3 years ago

When the opportunity cost associated with increasing the production of one good or service in terms of another is constant at ev

amid [387]

When the opportunity cost associated with increasing the production of one good or service in terms of another is constant at every level of production, then the production possibility frontier is Linear.

Opportunity costs address the potential advantages that an individual, financial backer, or business passes up while picking one option over another. Since opportunity costs are inconspicuous by definition, they can be barely noticeable.

Opportunity Costs= Absolute Income - Monetary Benefit.

The Production Possibility Frontier (PPF) is a bend on a chart that shows the potential amounts that can be delivered for two items if both rely on a similarly limited asset for their production. The PPF is additionally alluded to as the creation probability bend.

To learn more about Production Possibility Frontier is linear.

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7 0

2 years ago

Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $220 million of 8% bonds, dated January 1, on January 1, 20

7nadin3 [17]

Answer:

1 Jan 2021- Debit Investment $220 million, Credit Bank $201 million, Credit Discount received $19 million.

30 June 2021 Debit Bank $8,800,000 Credit Interest income $8,800,000

31 December Debit Bank $8,800,000 Credit Interest income $8,800,000

31 December 2021 Debit Fair value loss $10 million, Credit Investment $10 million.

Explanation:

Required: prepare journal entries.

interest income = 220 million *0.08 *6/12= $8,800,000

fair value gain or loss = opening fair value - fair value at the end of the year

= 220 million - 210 million

= $10 million

7 0

4 years ago

Find the future value of a five-year $113,000 investment that pays 10.00 percent and that has the following compounding periods:

Sati [7]

Answer: Future Value FV = 169,500

Explanation:

The information given to us are;

Present value PV = 113000

Interest R = 10% = 0.01

number of years T = 5

Future value FV = ?

So using the formula

FV = PV * [1 + (R * T)],

We input our value

FV = 113000 * [ 1 + ( 0.1 * 5) ]

FV = 113000 * [ 1 + 0.5]

FV = 113000 * 1.5

FV = 169500

3 0

3 years ago

How can being involved in extracurricular activities help you stand out on your college application?

V125BC [204]

Answer:

Extracurriculars such as clubs, community service organizations, and sports help you stand out on college apps because it shows you can handle more than just school. it also shows involvement in your school or community and dedication. not everyone is in an extracurricular so being in one makes you different from others.

Explanation:

8 0

3 years ago