1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
erik [133]
3 years ago
5

If the income elasticity of demand for good X is negative and the cross-price elasticity of demand between good X and good Y is

negative, which of the following must be true of good X
Business
1 answer:
Stella [2.4K]3 years ago
4 0

Answer:

Good X is Inferior Good, Good X is complementary good of Good Y.

Explanation:

Demand : Buyers ability & willingness to buy given price - has 4 factors (price of good, income, price of related goods, Taste).

Based on Income : Normal Goods demand vary directly with Income, more demand at higher income & vice versa. Eg: Normal grains like Wheat, Rice. Inferior Goods demand vary inversely with Income, more demand at lower income & vice versa. Eg: Low grade, cheap grains like Bajra.

Price of Related Goods: Related Goods can be Substitutes or Complements.  Substitute (interchangeable) goods price are directly related a with good's demand because - substitute price rise makes the good relatively cheap, increases its demand & vice versa. Complementary (together used) goods price are inversely related with a good's demand because - complements price rise makes the product combination expensive, decreases its demand & viceversa. 1st eg: Coke, Pepsi ; 2nd eg: Tea, Sugar.

If income elasticity of demand for good X is negative : implies it varies inversely with Income - It is an Inferior Good

If Cross Price Elasticity of demand between good X and good Y is negative : Implies Y's prices & X's demand vary inversely - Both are complements of each other.

You might be interested in
Suppose People's bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $
vodka [1.7K]

Answer:

10.38%

Explanation:

The formula to compute the effective annual rate of the loan is shown below:

= (1 + nominal interest rate ÷ periods)^ number of period - 1

The nominal interest rate is shown below:

= $250 × 4 ÷ $10,000

= $1,000 ÷ $10,000

= 0.1

Now the effective annual rate is

= (1 + 0.1 ÷ 4)^4 - 1

= (1 + 0.025)^4 - 1

= 1.025^4 - 1

= 10.38%

Since the interest rate is measured on a quarterly basis, we know there are four quarters in a year and we do the same in the calculation part.

This is the answer but the same is not provided in the given options

4 0
3 years ago
Suppose that instead of using a forward contract, you consider using options. A one-year call option to buy euros at a strike pr
Stells [14]

Answer:

Sell the put option. The put option is better and advantageous .

Explanation:

The call option is trading far below the strike price and poses risk. The price may not go up to $1.25 and hence not advisable. The put option is better as we stand to make a profit margin ($1.15 / Euro) if it sells the put at he strike price immediately. Given that the difference is high, it is unlikely that the price will move against us and we shall exercise the option as soon as the margin starts reducing.

5 0
3 years ago
Brulee Bakery produces both regular and vegan baked goods. Each quarter, the research and development department develops a reci
erastovalidia [21]

Answer: Product-level

Explanation:

 A product level activity is one of the type of activity that are performed for the production of the various types of products and the services and then it calculating the total number of batches of the specific items or products are get sold out in the market.

According to the given question, the Brulee bakery is basically producing the various types of vegan baked and the regular items and under the activity base costing the firm is basically developing the new vegan baked recipe.

Therefore, this type of process is basically refers as the product level activity.

3 0
3 years ago
Which of the following is an assumption of the decision-making process followed by consumers to maximize utility? rev: 04_09_201
kari74 [83]

Answer:

The correct answer is: The consumer considers the prices of the products.

Explanation:

When taking the decision regarding how to maximize utility the consumers will consider the prices of the products. The consumer will be able to maximize utility at the point where the marginal utility of money spent on each commodity is equal.

We can represent it as,

\frac{MU\ of\ good\ A}{Price\ of\ good\ A} = \frac{MU\ of\ good\ B}{Price\ of\ good\ B}

7 0
3 years ago
a recently renovated catering facility has opened in your town. the property, for insurance purposes, is valued at $1,023,000 an
Natalka [10]

Answer: $1,288.98

Explanation: The cost of the Insurance is calculated at a cost per $100 of value. The first step is to calculate how many 100s are in the value of the property. This is done by dividing 1,023,000 by 100 = 10,230. Next, you need to multiply 10,230 by the rate of .126, which equals $1,288.98, the cost of the cost.

3 0
3 years ago
Other questions:
  • NNR Inc.'s balance sheet showed total current assets of $1,875,000 plus $4,225,000 of net fixed assets. All of these assets were
    12·1 answer
  • True or false: the price floor of $6 per pound of cheese reduces the total revenue of cheese producers.
    10·1 answer
  • Determine the missing amounts. (Round answers to 0 decimal places, e.g. 1,225.) Unit Selling Price Unit Variable Costs Unit Cont
    11·1 answer
  • Challenge TasksThree weeks ago, Mike McGee left to join a larger company, and management decided to reorganize the IT department
    5·1 answer
  • Providing training for unemployed individuals is primarily intended to reduce
    11·1 answer
  • Bramble Corp. had 1420000 shares of common stock issued and outstanding at December 31, 2020. On July 1, 2021 an additional 1254
    10·1 answer
  • Inventory reduction via JIT is an effective tool for identifying
    10·1 answer
  • Jack works in a clothing store at the mall. He is paid on commission, so the more he sells the more money he makes. When a custo
    5·1 answer
  • If your heart get broken by a man then his new girl threatens you what do u do???
    7·2 answers
  • True or false: Subsection (d) under section 10 of the Federal Arbitration Act requires the court to review the merits of every c
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!