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BlackZzzverrR [31]
2 years ago
12

For each scenario, calculate the cross-price elasticity between the two goods and identify how the goods are related. Please use

the midpoint method when applicable, and specify answers to one decimal place. A 20% price increase for Product A causes a 10% decrease in its quantity demanded, but no change in the quantity demanded for Product B. cross-price elasticity between A and B: relationship between A and B: Product C increases in price from $3 a pound to $4 a pound. This causes the quantity demanded for Product D to increase from 44 units to 85 units. cross-price elasticity between C and D: relationship between C and D: When the price of Product E decreases 2% , this causes its quantity demanded to increase by 14% and the quantity demanded for Product F to increase 17% . cross-price elasticity between E and F: relationship between E and F:
Business
1 answer:
Leto [7]2 years ago
7 0

Answer:

a. Cross-price elasticity between A and B: 0. Relationship between A and B: No relationship.

b. Cross-price elasticity between C and D: 2.22. Relationship between C and D: Substitute.

c. Cross-price elasticity between E and F: -8.50. relationship between E and F: Complimentary.

Explanation:

a. Cross-price elasticity between A and B: relationship between A and B:

Percentage change in price of A = 20%

Percentage change in quantity of B =  0%

Cross-price elasticity between A and B = 0%/ 20% = 0.00

Relationship between A and B = No relationship

Note: There is no relationship between A and B because the cross-price elasticity between A and B is zero. That is, change in the price of A does not have any effect on the quantity demanded of B.

b. Cross-price elasticity between C and D: relationship between C and D:

Percentage change in price of C = {($4 - $3) / [($4 + $3) / 2]} * 100 = 28.5714285714286%

Percentage change in quantity of D = {(85 - 44) / [(85 + 44) / 2]} * 100 = 63.5658914728682%

Cross-price elasticity between C and D = 63.5658914728682% / 28.5714285714286% = 2.22

Relationship between C and D = Substitute

Note: The relationship between C and D is substitute because the cross-price elasticity between C and D is positive. That is, an increase in the price of C makes consumer to switch to and buy more of D which is a substitute.

c. cross-price elasticity between E and F: relationship between E and F:

Percentage change in price of E = - 2%

Percentage change in quantity of F =  17%

Cross-price elasticity between E and F = 17%/ (-2%) = - 8.50

Relationship between E and F = Complimentary.

Note: The relationship between E and F is complimentary because the cross-price elasticity between E and F is negative. That is, an increase in the price of E makes consumer to buy more less F which is a compliment or use together with E.

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Ugo [173]

Answer:

Fresno

Explanation:

A contract can be defined as an agreement between two or more parties (group of people) which gives rise to a mutual legal obligation or enforceable by law.

There are different types of contract in business and these includes: fixed-price contract, cost-plus contract, bilateral contract, implies contract, unilateral contract, adhesion contract, unconscionable contract, option contract, express contract, executory contract, etc.

The uniform commercial code (UCC) is a set of standardized business laws which are put in place for the regulation of financial contracts and commercial transactions used across different states in the United States of America. There are special rules known as the special business standards that are set up by UCC governing merchants and the sales of goods in Article 2 of the Uniform Commercial Code.

Under Article 2 of the Uniform Commercial Code, a shipment contract between two parties (buyer and seller) states that a buyer bears the risk of loss and is typically responsible for the costs of goods in the event of any damage or loss incurred during transportation and prior to receiving the goods.

In this scenario, the transaction is a nonshipment contract and the place for delivery is not specified in the agreement.

However, on the basis of the facts that both parties are aware that the 50 cases of packaged macaroni are in a warehouse in Fresno, the place for delivery is Fresno.

8 0
3 years ago
The following statement describes which of the following theories? _________ is a theory of management that analyzes and synthes
Angelina_Jolie [31]

Answer:

The answer is: Taylorism

Explanation:

Frederick Winslow Taylor and Henry Fayol are considered the "fathers" of management theory, but had opposing views on how businesses should work and be organized. Taylor was responsible for developing the Scientific Management theory (Taylorism) and led the Efficiency Movement.

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4 0
3 years ago
High Country Apparel signed a $75,000, two-year, interest-bearing, 5% note on October 1, 20XX. The maturity value of the note is
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Using this formula

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Let plug in the formula

Maturity value of note=$75,000+($75,000×2 year×0.05)

Maturity value of note=$75,000+$7,500

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Inconclusion  the maturity value of the note is: $82,500.

Learn more about maturity value of note here:brainly.com/question/24374294

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