MIT economist Jerry Housman has estimated the price elasticity of demand for Post Raisin Bran cereal to be -2.5 and the price el
asticity of demand for all types of breakfast cereals to be -0.9. The demand for Post Raisin Brand cereal is:__________ 1. elastic 2. inelastic the demand for all types of breakfast cereals is:_____ 1. inelastic2. elastic
The demand for Post Raisin Brand cereal is: ELASTIC
the demand for all types of breakfast cereals is: INELASTIC
Explanation:
To calculate the price elasticity of demand (PED) we can use the following formula:
PED = % change in quantity / % change in price
If PED > 1, the demand is price elastic
If PED = 1, the demand is price unitary
If PED < 1, the demand is price inelastic
*The PED always results in a negative number, e.g. price deceases, quantity increases, but for practical reasons we convert the negative number into a positive (we use absolute values) when we are determining the elasticity.
Starbucks standardizing its products across the United States and other countries
Explanation:
When a company takes a global strategy, it means it is looking forward to competing and expanding itself in the global market. A global strategy represents the strategy and plans that a business implements to expand in other countries to profit more from the goods or services it offers abroad.
The Vacation Benefits payable account represents a liability that the employer has with the employee that has already earned its days of paid vacations but has not used them yet. When the employee is going to enjoy paid vacations days, this account (as all liability accounts) is decreased through a debit, and the bank's account is credited.
To became a financial planner that sell fixed-income investment, Jenny requires a CFP certificate.
In order to get it, Jenny has to pass the CFP certification exam that's administered by the CFP board, as a sign that Jenny has fulfilled the standard.
