The demand for ski rentals falls when the price of lift tickets increases. This is an example of Price Elasticity of demand.
<h3>What Is Price Elasticity Demand?</h3>
This refers to the relationship between the price of a commodity relative to the demand of that same commodity.
In other words Price elasticity of demand is a measure of how sensitive the quantity demanded is to its price.
When the price increase, quantity demanded for such product decreases. It is important to note that the fall in prices of some product is more than the others.
Learn more about Price Elasticity of Demand at brainly.com/question/5078326
#SPJ1
Answer:
sell 1.714
Explanation:
The computation of the number of contract buy or sold to hedge the position is shown below:
As we know that
Number of contracts = Hedge Ratio
Hedge Ratio = Change in Portfolio Value ÷ Profit on one future contract
where,
Change in the value of the portfolio is
For that we need to do following calculations
Expected Drop in Index is
= (1200 - 1400) ÷ 1400
= -14.29%
And, Expected Loss on the portfolio is
= Beta × Expected index drop
= 0.60 × (-14.29%)
= -8.57%
So, the change is
= 1000000 × (-8.57%)
= -$85,700
And, the profit is
= 200 × 250 multiplier
= 50,000
So, the hedging position is
= -$85,700 ÷ 50,000
= -1.714
This reflects the selling position
Answer:
when CWC gives Richie a warehouse receipt for the widgets
Explanation:
Answer:
The correct answer is: expressed in the prices of a base year.
Explanation:
Real GDP is an inflation-adjusted measure to calculate changes in economic output. It calculates the value of final goods and services produced in an economy in a year expressed in the prices of a base year.
Real GDP does not include changes in the price of products as it is calculated at constant prices.
Nominal GDP, on the other hand, is calculated on the basis of current prices. It includes changes in prices and is not inflation-adjusted. That is why real GDP is preferred over nominal GDP.
Later movers do not face high growth markets. Later movers are also referred to late followrs or later market entrants. These businesses enter the market after the market has been established. By joining the market later, they have an advantage because they can see what kinks have been worked out by other companies, what has worked and was hasn't worked.
