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lbvjy [14]
2 years ago
10

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

Business
2 answers:
Usimov [2.4K]2 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]2 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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7 months ago
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Alexeev081 [22]

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Explanation:

3 0
3 years ago
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Jeri and Knute are members of Lighthouse Tours LLC, a limited liability company. With respect to Lighthouse Tours’s liability, a
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Answer:

Personal liability

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8 0
2 years ago
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Brief Exercise 9-17 Record early retirement of bonds issued at a premium (LO9-7)
butalik [34]

Answer:

Dr Bonds payable                       $50,700

Dr premium on bonds payable     $4,265

Cr Cash                                                                                 $53,000

Cr gain on bonds retirement($50,700+$4,265-$53000) $1,965

Explanation:

The premium yet to be amortized on the bond at retirement is the carrying  value minus face value i.e  $54,965-$50,700=$4265

The premium  on bonds payable would now be debited with $4265

The cash paid on retirement would be credited to cash account

The face value of the bonds payable of $50,700 would be debited to bonds payable in order to show that the obligation has been discharged.

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