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
ryzh [129]
3 years ago
12

If Ana considers cake a substitute for Top Ramen noodles, and her quantity demanded for Top Ramen goes from 30 to 40 packets eve

ry six months when the price of cake goes from $15 to $35 a cake, what is her cross-price elasticity of demand for Top Ramen (using midpoint method)
Business
1 answer:
kondaur [170]3 years ago
5 0

Answer:

$0.35

Explanation:

The computation of the price elasticity of demand using mid point formula is shown below:

= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in price ÷ average of price)

So, Change in quantity demanded would be

= Q2 - Q1

= 40 - 30

= 10

Now, Average of quantity demanded

= (40 + 30) ÷ 2

= 35

Change in price

= P2 - P1

= $35 - $15

= $20

And, the average of price would be

= ($35 + $15) ÷ 2

= $25

Cross price elasticity of demand = (10 ÷ 35) ÷ ($20 ÷ $25)

= 0.28 ÷ $0.8

= $0.35

You might be interested in
Difference between accounts receivable and payable
Elina [12.6K]
When a company buys something on credit it increases account payable, and when a company sells on credit it will increase their account receivable.
7 0
3 years ago
True or false: Although change management is not a distinct management function, it is used to perform the five management funct
s2008m [1.1K]

Answer:

it is true because that just makes sense to me

6 0
3 years ago
You're the marketing director for a startup firm in the snack food industry. In the past, you've sold only to small specialty st
Ksivusya [100]

Answer:

<u>Interpersonal influences and organizational factors.</u>

Explanation:

<u>Interpersonal influences</u> are those that include interests, status, and authority in an organization. It should be included in the approach for the potential new buyer to recognize the lead authorities and the interests of who might be their new supplier. It is also imperative that the marketing director include <u>organizational factors</u>, objectives, policies, and organizational processes in the approach to influence purchasing, as these factors are key to demonstrating credibility and viability for the new buyer.

3 0
3 years ago
Which of the following describe the reason(s) why maximization of intrinsic stock value benefits society? Check all that apply.
Bess [88]

Answer:

The correct answer is b) succesful companies benefit consumers

Explanation:

The intrinsic stock value of a company can be thought of as its real value instead of its nominal value (or monetary value). In the intrinsic value of a stock is high, it is because the company is a healthy financial situation, and probably has good economic prospects. Companies that are run well benefit customers because they can offer goods and services at lower prices, and at higher quality.

6 0
3 years ago
"Elasticity" is often considered a core justification for the adoption of cloud computing, primarily due to the fact that it is
Airida [17]

Answer:

and proportional costs benefit (true)

Explanation:

Human beings tend to be rational beings, and as such we behave when we go shopping. If a company raises the price of a product, the company will sell fewer units of that product and, in the same way, if the product is cheaper, it can have more sales.

But more or less sales does not mean more or less revenue for the company. If this were the case, all companies would simply limit themselves to lowering the price with sufficient margin to obtain greater benefits. Actually, there is a way to know what the price would be that would maximize the income of the product and therefore the benefits. It is the so-called elasticity of demand.

5 0
4 years ago
Other questions:
  • Consumption depends positively on ______ and investment depends negatively on ______. the real interest rate; disposable income
    5·1 answer
  • What does it mean when a return is reject for code 0503
    9·1 answer
  • Lower inventory levels Group of answer choices make processes less dependent on each other while revealing bottlenecks more quic
    11·1 answer
  • John is admitted to the hospital for a pain crisis from his sickle cell disease. He usually takes morphine 30mg every 12 hours b
    13·1 answer
  • Which of the following statements is true? Tax rates refer to the percentage of income that is taxed, whereas tax revenues refer
    6·1 answer
  • A listing given to any number of brokers without liability to compensate any broker, except the one who first secures a buyer re
    7·1 answer
  • Bonita Industries produces face cream. Each bottle of face cream costs $11 to produce and can be sold for $15. The bottles can b
    7·1 answer
  • A. Was Apple wrong for not complying with the FBI’s request?
    14·1 answer
  • Hi there !<br>What is a Stake in Business ?​<br>Nonsense = Reported <br>Thank you
    9·1 answer
  • Ownership of a property reverted to the grantor of the estate when its usage failed to conform to a stated condition in the gran
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!