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
Papessa [141]
3 years ago
12

You work for a marketing firm that has just landed a contract with Run-of-the-Mills to help them promote three of their products

: guppy gummies, frizzles, and mookies. All of these products have been on the market for some time, but, to entice better sales, Run-of-the-Mills wants to try a new advertisement that will market two of the products that consumers will likely consume together. As a former economics student, you know that complements are typically consumed together while substitutes can take the place of other goods. Run-of-the-Mills provides your marketing firm with the following data: When the price of guppy gummies decreases by 20%, the quantity of frizzles sold decreases by 22% and the quantity of mookies sold increases by 7%. Your job is to use the cross-price elasticity between guppy gummies and the other goods to determine which goods your marketing firm should advertise together.
Complete the first column of the following table by computing the cross-price elasticity between guppy gummies and raskels, and then between guppy gummies and mookies.

Cross-Price Elasticity of Demand Complement or Substitute Recommend Marketing with Guppy Gummies
Raskels
Mookies
Business
1 answer:
Mazyrski [523]3 years ago
5 0

Answer:

1.1 substitutes do not market together

-0.35 complements market together

Explanation:

1.1

-0.35

Cross price elasticity of demand measures the responsiveness of quantity demanded of good A to changes in price of good B.

If cross price elasticity of demand is positive, it means that the goods are substitute goods.

Substitute goods are goods that can be used in place of another good.

if the price of a good increases, the demand for the substitute increases and if the price of the good reduces, the demand for the substitute increases.

If the cross-price elasticity is negative, it means that the goods are complementary goods.

Complementary goods are goods that are consumed together

Cross price elasticity = percentage change in quantity demanded of good A / percentage change in the price of good B

Frizzles = -22% / -20% = 1.1

Mookies = 7 / -20 = -0.35

You might be interested in
Writing down that the National Entrepreneurship Foundation is available to
Triss [41]
Inventory or opportunity resources i think..
7 0
3 years ago
Read 2 more answers
The Quarter Burger is a hamburger sold by the international fast-food chain Sammy's Burgers. It was given the name because it co
timama [110]

Sammy's quarter-pound burger is positioned by: price-quality

<u>Explanation:</u>

The price-quality way of positioning practices the similarity within price and quality before-mentioned that it optimally values a commodity according to the feature of the commodity to retain the commodity hovering in the customer's perception. Pricing does not necessitate to be huge for more leading positioning.

Marketers frequently do price/ quality properties to locate their trademarks. Although the price is an essential factor, the commodity quality must be tantamount to, or indeed more reliable than, fighting trademarks for the positioning strategy to be active.

8 0
3 years ago
On October 28, 2013, Mercedes Company committed to a plan to sell a division that qualified as a component of the entity accordi
Marysya12 [62]

Answer: $2,500,000

Explanation:

Discontinued operations is when a particular division in a company shutdown.

With regards to the above question, the before-tax amount that Mercedes should report as loss on discontinued operations in its 2013 income statement will be:

= $2,000,000 + ($3,000,000 - $2,500,000)

= $2,000,000 + $500,000

= $2,500,000

4 0
3 years ago
Bringham Company issues bonds with a par value of $540,000 on their stated issue date. The bonds mature in 6 years and pay 9% an
Vladimir [108]

Answer:

1. $24,300

2. 12

3. the bond is trading at a discount.

4. $470,090.86

5. <u>Journal Entry</u>

Cash $470,090.86 (debit)

Bond Payable $470,090.86 (credit)

Explanation:

<u>1. seml-annual Interest payment</u>

Seml-annual Interest payment = ($540,000 × 9 %) ÷ 2

                                                  = $24,300

<u>2. Number of seml-annual Interest payment</u>

Number of seml-annual Interest payment = 6 years × 2

                                                                     = 12

<u>3. Issue</u>

The annual market rate for the bonds (YTM) ,  12% is greater than the coupon rate of the bond 9%.

The Price will be less than the par value and we say that the bond is trading at a discount.

<u>4. Computation of the Issue Price, PV</u>

PMT = $24,300

n = 12

YTM = 12 %

FV = $540,000

p/yr = 2

PV = ?

Using a Financial Calculator, the Issue Price, PV is $470,090.86

<u>5. Journal Entry</u>

Cash $470,090.86 (debit)

Bond Payable $470,090.86 (credit)

4 0
3 years ago
Carol is a vice president for sales and marketing at her company. She conducts a survey asking customers their impressions of th
leva [86]

Answer: 1) Carol can use the surve results to . identify the building blocks of competitive advantage and develop strategies to use them to increase profitability and in this way try to get the most out of it.

2) Strategically, managers who have identified these advanced factors should <u>take steps to protect these assets, either formally or as a trade secret, optimize the company's use of them and not outsource them to other firms </u>because it is convenient to try that the competition does not find out about the use of this factor of production so that it cannot imitate them and thus be able to gain a greater market share to the competition.

3) The statement "in response to requests from customers for healthier food on the menu, a restaurant tweaks its recipe for its most popular sandwich to remove processed ingredients and replace them with fresh vegetables." describes a strategy that adds value to multiple factors as it goes through several activities in the value chain because the company's decision to use less processed ingredients and more fresh vegetables not only facilitates production but also responds to a customer need, which will value the products even more.

8 0
3 years ago
Other questions:
  • LO 6.5Product costs under variable costing are typically:
    6·1 answer
  • During a recession, median income falls by 15%. if the demand for grapes falls by 12%, grapes are a(n) _____ good with an income
    11·2 answers
  • The declaration and payment of a dividend by a corporation causes: Select one:
    10·1 answer
  • You and your college roommate eat three packages of Ramen noodles each week. After graduation last month, both of you were hired
    14·1 answer
  • In a spreadsheet, what is a line of data organized vertically, from top to bottom? A. A row B. A column C. A table D. A cell
    5·2 answers
  • _______ decreases the number of dollars in the hands of the public and increases the number of bonds in the hands of the public.
    15·1 answer
  • A negative net present value means that the___________
    5·1 answer
  • A portfolio has 30% of its value in IBM shares and the rest in Microsoft (MSFT). The volatility of IBM and MSFT are 35% and 30%,
    11·1 answer
  • On January 1, 2021, Tru Fashions Corporation awarded restricted stock units (RSUs) representing 12 million of its $1 par common
    13·1 answer
  • 1.1.<br>State 8 business functions and explain their roles​
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!