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Lana71 [14]
3 years ago
7

When the price of ketchup rises by 15 percent, the demand for hot dogs falls by 1 percent. a. Calculate the cross-price elastici

ty of demand. Instructions: Enter your response rounded to two decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Cross-price elasticity of demand: b. Are the goods complements or substitutes: c. In the original scenario, what would have to happen to the demand for hot dogs for us to conclude that hot dogs and ketchup are substitutes? The demand for hot dogs would have to decline. The demand for hot dogs would have to remain unchanged. The demand for hot dogs would have to rise.
Business
1 answer:
zlopas [31]3 years ago
3 0

Answer:

Cross Price elasticity of demand = -0.06

The Goods are complements

If the demand for Hot dogs increased by 15% or more after Ketchup prices increased by 15%, then both items will be interpreted to be substitute items.

Explanation:

Cross Price elasticity of demand = % change in quantity demanded for Hot dogs / % change in price of Ketchup

= -1% divided by 15%

= -0.06

Based on the rules,

When Cross Price elasticity is > 0 = the products are substitutes

When Cross Price elasticity is = 0 = the products are independent

When Cross Price elasticity is < 0 = the products are Complements

This means therefore that Ketchup and Hot dogs are complementary items.

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Answer: The misappropriation theory

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It is basically uses for the insider trading and when the individual person misusing the confidential data or information and also violating all the securities laws.

According to the question, the given argument is basically describe about the misappropriation theory.

Therefore, The misappropriation theory is the correct answer.  

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3 years ago
Suppose that an economy consists of only two individuals. Trevor has $1070 available to spend on goods. He decides to purchase $
castortr0y [4]

Answer:

<em>The question option are:</em>

<em>1. For the current quarter what is the economy's income? </em>

<em>2. For the current quarter, what is the economy's expenditure? </em>

<em>3. In an economy, how are income and expenditure related?</em>

1. The economy's income for the current year is $450 because there is only one transaction that take place in the year worth of $450

2. The economy's expenditure of the current year is $450 because each transaction has two side. One is the Income, the other is Expenditure. The income is converted to expenditure.

3. In an economy, income and expenditure are related and they are equal. Each transaction has two side. One is the Income, the other is Expenditure. The income is converted to expenditure.

4 0
3 years ago
The three fitness apps that Under Armour acquired are industry leading apps, with large user bases, in the fast-growing market o
Jobisdone [24]

The apps stated above will be marked as <u>Stars </u>on Under Armours Market Growth/Market Share matrix.

<h3>What do <u>STARS </u>mean on the Market Share/Market Growth/BCG Growth-Share Matrix?</h3>

The two keywords which define stars on the matrix are:

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Any product that is projected as fast-growing and which comprises a huge portion of the market is referred to as "Stars" on the growth matrix.

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2 years ago
Internal rate of return method The internal rate of return method is used by Testerman Construction Co. in analyzing a capital e
Eddi Din [679]

Answer:

Testerman Construction Co.

Internal rate of return method in analyzing capital expenditure:

Present value of expenditure = $149,630

Present of cash inflows annuity = $149,630 (using 20% discount rate and present value annuity factor of 3.3251 x $45,000)

NPV = $0 (PV of cash outflow - PV of cash inflow)

Therefore, the IRR = 20%

Explanation:

a) Data and Calculations:

Investment cost = $149,630

Annual net cash flows = $45,000

Investment period = 6 years

Annuity of future cash flows = 3.3251

b) Testerman’s IRR (Internal Rate of Return) is a capital budgeting and analysis tool which determines the discount rate that makes the present value of future inflows equal to the present value of outflows from a project.  This IRR helps the managers to determine the projects that add value and are worth undertaking.  IRR is based on assumptions.  Similar projects with the same IRR will differ in returns due to the differences in timing and the size of the cash, the amount of debts and equity used  to generate the returns, and the assumption of a constant reinvestment may which IRR makes.

7 0
3 years ago
Katie Homes and Garden Co. has 14,000,000 shares outstanding. The stock is currently selling at $66 per share. If an unfriendly
Nesterboy [21]

Answer:

a. 2,800,000 shares

b. $49.50

Explanation:

a. Poison is a tactic used by a company threatened with an unwelcome takeover bid to make itself unattractive to the bidder

Shares that the unfriendly outside group must acquire for the poison pill to go into effect is

= 20% of 14,000,000 shares.

= 14,000,000 × 20%

= 2,800,000 shares

b. The new purchase price for the existing stockholders will be

=$66 × (1 - 0.25)

= $49.50

7 0
3 years ago
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