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
BlackZzzverrR [31]
3 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]3 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.

You might be interested in
An adult is swinging a small child by the arms, and the child screams and grabs his left arm. It is determined in the emergency
borishaifa [10]

Answer:

According to the information in the given question, type of dislocation that occur in the head is referred as subluxation.

Explanation:

According to the information in the given question, type of dislocation that occur in the head is referred as subluxation.

subluxation is type of dislocation that can occur either in joint or in any organ of the body. It is generally diagnose by analyzing the x- ray and it is not fixed for any part and it can occur in any part of the body.

If serious Subluxation occur than surgery may can happened especially when dislocation occur in back.

5 0
3 years ago
Near the end of 2010, the ledger of Stivers Company included the following accounts and balances: Allowance for Doubtful Account
Minchanka [31]

Answer and Explanation:

The computation of the balances of the Allowance for Doubtful Accounts, Bad Debt Expense and Accounts Receivable is shown below;

For Accounts receivable  

a) Opening balance $200,000 Debit balance

b) Current year credit sales (75% of $800,000) $600,000 Debit balance

c) (-) Current collection from accounts receivables -$450,000 Credit balance

d) (-) Bad debt expenses -$11,000 Credit balance

e) Closing balance of accounts receivables $339,000 Debit balance

for Allowance for Doubtful Accounts  

Allowance required as per Current year analysis (2% of (75% of $800,000) $12,000 Credit balance

(-) Opening balance $1,000 Credit balance

$11,000 Credit balance

The journal entry is  

Bad debt expense a/c …Dr   11000  

      To Allowance for Doubtful Accounts 11000  

The Closing balance of Allowance for Doubtful Accounts 12000 Credit balance

For Bad debt expenses  

The journal entry is    

Bad debt expense a/c …Dr   11000  

      To Allowance for Doubtful Accounts 11000  

The Closing balance of Bad debt expense account 0

7 0
2 years ago
By how many packs of cigarettes does quantity demanded decrease due to the excise tax on cigarettes?
andrezito [222]

Answer:

Explanation:

The government taxes packs of cigarettes both to discourage smoking and to raise tax revenue. The average excise tax on a pack of cigarettes is $2.50 per pack. The table below presents the annual demand and supply schedules, in billions of packs, both before and after the tax on packs of cigarettes.

3 0
3 years ago
Sheridan Company sells its product for $7100 per unit. Variable costs per unit are: manufacturing, $4400, and selling and admini
Minchanka [31]

Answer:

                 Sheridan Company

                  Income Statement

  For the year ended December 31, 202x

Sales revenue                                $170,400

Cost of goods sold                      <u>($129,600)</u>

Gross profit                                     $40,800

Period costs                                  <u>($24,000)</u>

Operating income                           $16,800

cost of goods manufactured 2019 (or 2020, it is the same)= (20 x $4,500) + $18,000 = $108,000 / 20 = $5,400 per unit

COGS 2020 = 24 x $5,400 = $129,600

sales revenue = 24 x $7,100 = $170,400

4 0
3 years ago
Which resource management activity establishes common definitions for capabilities of personnel, equipment, teams, supplies, and
inn [45]

Answer:

The correct answer is d) Identifying and Typing Resources

Explanation:

Resource management preparedness involves four key activities: inventorying resources; Qualifying, certifying, and credentialing personnel; Identifying and typing resources; Planning for resources and Acquiring, storing.

Identifying and typing resources requires collaboration and coordination across organizations to manage resources including personnel, equipment, teams, supplies and facilities.

7 0
3 years ago
Other questions:
  • Which course of action would the WTO take if member A tries to impose a trade barrier against member B?
    9·1 answer
  • Because of the adverse selection problem loading...​:
    5·1 answer
  • What are the portfolio weights for a portfolio that has 148 shares of Stock A that sell for $35 per share and 110 shares of Stoc
    13·1 answer
  • 1. If Net Capital Outflow increases, the ________ of dollars in the Foreign Currency Exchange Market will increase, causing the
    6·2 answers
  • Ayayai Corp. had the following transactions during 2017: 1. Issued $235000 of par value common stock for cash. 2. Recorded and p
    5·1 answer
  • All of the following describe a balance sheet except which one? A. The balance sheet reflects the results of multiple transactio
    15·1 answer
  • What are the principal tools and technologies for accessing information from databases to improve business performance and decis
    6·1 answer
  • On the one hand, a gerund is a verb that acts as a noun, know for the -ing form. On the other hand, an infinitive is the basic f
    9·1 answer
  • YO Easy question for all
    15·1 answer
  • a corporation reported cash of $14,000 and total assets of $178,300 on its balance sheet. its common-size percent for cash equal
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!