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3 years ago

The cross-price elasticity of demand measures how sensitive purchases of a specific product are to changes in

Business

2 answers:

Usimov [2.4K]3 years ago

4 0

Answer:

The cross price elasticity of demand measure how sensitive is the demand of the product X is due to the change in the price of the product Y.

The formula is stated as: Percentage change in the quantity demanded of product X / Percentage change in the price of product Y.

Further, cross price elasticity can be divided into Positive, negative and zero.

Hope this clears things up.

Good Luck.

MrRa [10]3 years ago

4 0

Answer:

the price of a similar substitute or complementary product.

Explanation:

In microeconomics, the cross price elasticity of demand measures how the change in the price of a certain product will affect the quantity demanded for a similar substitute or complementary product whose price doesn't change.

In order to measure the cross price elasticity of demand there must exist a previous relationship between the prices and quantities demanded of the products or services. E.g. a change in the price of movie tickets does not affect the quantity demanded of gasoline, since there is no relationship between them.

You can measure cross price elasticity of substitute products, e.g. coffee and tea, or complementary products, e.g. coffee and sugar. Actually the cross price elasticity is useful for determining how closely related complementary or substitute products are.

the formula for cross price elasticity = % change in quantity demanded of product Y / % change in price of product X.

A negative cross price elasticity means that the products are complementary, while a positive cross price elasticity means that the products are substitutes.

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3 years ago

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Acme Enterprises just bought a new manufacturing machine. Which of these costs should be capitalized? (Check all that apply.)

ankoles [38]

Answer:

Option D, E and F. See below for information.

Explanation:

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3 years ago

QUESTION 5 A and B are substitute goods, but A and C are complementary goods. If the cost of producing A decreases, then the dem

goldenfox [79]

Answer:

The correct answer is letter "D": B will decrease and the demand for C will increase.

Explanation:

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Complementary goods' quantities demanded have a directly proportional direction. Thus, if the quantity demanded for one product increases, the quantity demanded for its complementary goods increase as well.

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3 years ago

is an arrangement under which an investment banker agrees to purchase all shares of a public offering at an agreed-upon price. a

Andreyy89

What is Investment Banker?

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A private placement is when stock or bonds are sold to institutions and investors who have been hand-picked rather than on the open market. It is a substitute for an initial public offering (IPO) for a business looking to raise money for growth.

Wealthy individual investors, banks and other financial institutions, mutual funds, insurance companies, and pension funds are among the investors asked to take part in private placement programs.

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Comparatively speaking to the open market, private placements are less strictly regulated.

Startups today frequently use private sales in order to raise capital and delay or avoid an initial public offering (IPO).

To learn More about investment banker from the given link.

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2 years ago