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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

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Answer: The price of the tied good is $20.

Explanation: The practice of tying is used to package products in such a way that the price of the tied (combined) good is closer to the buyers total willingness to pay for the two goods.

In this case, the total willingness to pay of Carnivore is $20+$7=$27

While, that of Leafygreens is $8+$12=$20

Thus, the producer will sell the combined good at $20 as it this price both the consumers will buy the tied good. If the producer sells it at $27, then only the Carnivore will buy the good but Leafygreens will not.

Thus, with zero marginal cost of serving additional consumer it is better for the producer to sell at $20.

8 0
3 years ago
The central route to persuasion is to ____ as the peripheral route to persuasion is to ____
pychu [463]
The central route to persuasion is to be persuaded by the content of the message as the peripheral route to persuasion is to agree on the message not based on the arguments but on the expertise of the speaker.For example, when a relationship expert speaks, you can decide to agree with him on the mere fact that he is a relationship expert but not on what he is saying because it may be correct or wrong.
8 0
3 years ago
Real property taxes are often assessed on the value of the property at the beginning of the year. when property is sold in the m
sergejj [24]

When property is sold in the middle of year, both the buyer and seller can deduct their pro rated portion of the property tax.

The property taxes are based on the assessed value of the property. So when the property tax is pro rated at the time of the transfer, both the buyer and seller can deduct their pro rated portion of the property tax.

Buyer and seller prorations are often applied during real estate closing transactions to divide the cost of expenses like property taxes. Thus, the buyer gets a deduction for the prorated amount of property tax due after closing, and the seller gets the same deduction for the taxes.

Hence, both the buyer and seller receives the deduction for the real property tax.

To learn more about property tax here:

brainly.com/question/15227817

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6 0
1 year ago
A customer value proposition is a unique strength relative to competitors that provides superior returns, often based on quality
balu736 [363]

<u>Product Protocol is a statement that, before product development begins, identifies (1) a well-defined target market; (2) specific customers' needs, wants, and preferences; and (3) what the product will be and do to satisfy consumers</u>

Explanation:

<u>Product protocol</u> is also termed as <u>Product definition ,Product requirement,Product deliverables.</u>

<u />

<u>A product protocol is required after the selection of the product and you are done with the Concept testing ,the preliminary  sales forecasting of the product is also completed.</u>

<u>The Product Protocol can be said to be a written document or statement  that is required by the various division of a company (like the R&D,Marketing,procurement,production departments)</u>

4 0
3 years ago
The free cash flow to the firm is reported as $205 million. The interest expense to the firm is $22 million. If the tax rate is
Sergeu [11.5K]

Answer:

The correct answer is $2,444.6 billion

Explanation:

FCFE= FCF+ Increase in debt- Interest (1-t)

        =  $205+$25-$22( 1-0.35)

        =$215.7

Market Value = [(215.7)1.02)]/ [11%-2%]

                      =$2,444.6

Assuming a single period growth rate of 2%,

the forecasted FCFE =$215.7(1+0.02)

                                  =$220.01 billion

Although this is not available in the options provided ,$220.01 billion is the correct answer.

4 0
3 years ago
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