Answer:
Quantity demanded of B/percentage change in price of A.
Explanation:
Cross price elasticity of demand is calculated as follows:
= Percentage change in quantity demanded for Good B ÷ Percentage change in price of good A
Cross price elasticity of demand is positive for the substitute goods and negative for the complimentary goods.
For Substitute goods:
It states that there is a positive relationship between the price of a good and the quantity demanded for its substitute goods.
For complimentary goods:
It states that there is an inverse or negative relationship between the price of a good and the quantity demanded for its complimentary goods.
Answer:
increase short-run aggregate supply.
Explanation:
Given that energy is an important part of the production process. It is often considered to be the next in line after labor, thereby having a significant effect on the economy's aggregate supply of real production.
Hence, a decrease in energy prices will decrease the production cost and in turn lead to an increase in short-run aggregate supply, thereby making the SRAS curve shift rightward.
This is because a decrease in energy prices will make it possible for companies to increase their supply of real production at a cheaper cost
Answer:
The incremental income from processing the oranges into orange juice would be =$51000.
Explanation:
Incremental income from further process= (Selling price per unit- Additional cost per unit)*No. of units sold
= ($66 per unit-$15 per unit)*1000 units
= $51000
<u>Answer:</u>
<em>A creation conceivable outcomes outskirts demonstrates the most extreme sum that an economy can deliver.</em>
<u>Explanation:</u>
The creation plausibility outskirts is a marginalist model that mirrors the most extreme amounts of merchandise and ventures that a nation or endeavour is fit for delivering in a given period and dependent on certain generation factors and innovative learning. Hence there are three circumstances in the profitable structure of a nation or endeavour:
- Inefficient beneficial structure: When it is underneath the PPF, that is, either all assets are not utilized (inactive assets), or the innovation isn't satisfactory.
- Efficient beneficial structure: It is situated before the fringe or near it. There are no inactive assets and the best innovation is being utilized.
- Unattainable beneficial structure: It is over the generation potential outcomes. It is hypothetical since no nation or endeavour can deliver past its ability.
People bought more goods and created high demand for new products
