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3 years ago

Suppose we have the following information concerning the printed magazine and digital magazine subscription markets:

Business

1 answer:

Sidana [21]3 years ago

6 0

Answer:

Cross-price elasticity of demand between printed and digital magazine subscriptions is 8.91.

Explanation:

Percentage change in price of Printed Magazine Subscription = ((Printed Magazine Subscription Price1 - Printed Magazine Subscription Price0) / Printed Magazine Subscription Price0) * 100 = (($13.40 - $20) / $20) * 100 = -33%

Percentage change in quantity of Digital Magazine Subscription Quantity = ((Digital Magazine Subscription Quantity1 - Digital Magazine Subscription Quantity0) / Digital Magazine Subscription Quantity0) * 100 = ((208 - 216) / 216) * 100 = -3.7037037037037%

Cross-price elasticity of demand between printed and digital magazine subscriptions = Percentage change in price of Printed Magazine Subscription / Percentage change in quantity of Digital Magazine Subscription Quantity = -33% / -3.7037037037037% = 8.91

Note: The relationship between printed and digital magazine subscriptions is that they are substitutes because the cross-price elasticity between them is positive. That is, an increase in the price of printed digital magazine makes consumer to switch to and buy more of digital magazine which is a substitute.

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A trader buys a call option with a strike price of $30 for $3. Does the trader ever exercise the option and lose money on the tr

stepladder [879]

Answer:

The trader exercises the option and loses money on the trade if the stock price is between $30 and $33 at option maturity.

Explanation:

A call option is the right to buy an asset at an agreed price on the maturity date. This agreed price is known as the strike price.

In the given scenario, the strike price is $30. The trader pays an additional $3 for the right to exercise the option, thus paying a total of $33 for the option.

Now, if the asset price on maturity date is greater than $30, the trader shall exercise the option and buy the asset. This is because the market price of the asset is greater than the price the trader pays for it, resulting in a favorable situation for the trader.

However, the trader paid a total of $33 for the stock. Hence, the trader shall lose money on the trade as long as the asset price is below $33.

Therefore, if the asset price upon maturity is between $30 and $33, the trader shall exercise the option but lose money on the trade.

3 0

3 years ago

In performing accounting services for small businesses, you encounter the following situations pertaining to cash sales. 1. Pool

saveliy_v [14]

Answer:1. Poole journal $

Date

April 10

Cash account Dr 50,925

Cash sales Cr 48,500

Sales tax. Cr. 2425

Narration. Cash sales inclusive of sales tax.

Waterman journal $

Date

April 15

Cash account Dr 26750

Cash sales Cr. 25,000

Sales tax. Cr. 1750

Narration. Cash sales inclusive of sales tax

Explanation:

Firms are authorized by the government to collect sales tax on their behalf at the time of sales and such amount when collected are treated as liability by the firm to be remitted to the goverments.

At the point of sale the sales tax is showing as percentage to be charged on sales separately e.g 5% on sales figures.

If the tax percentage is not separated at the time of sales and the sales is made inclusive of sales tax then the sales tax like in the above scenario will be 7/107 * $26,750 which gives $1750

7 0

3 years ago

What is considered a license, but is not necessarily a degree?

lesantik [10]

For example im a CNA. to be a CNA you don't have to have a degree in nursing you just have to have a license. another example is CPR

3 0

3 years ago

Which of the following sentences are correctly punctuated? Check all that apply. Jessica’s former office mates who joined the co

skelet666 [1.2K]

Answer:

Explanation:

Jessica’s former office mates who joined the company at the same time she did have either been promoted or changed jobs. WRONG

Jessica’s former office mates, who joined the company at the same time she did, have either been promoted or changed jobs. RIGHT

In the file cabinet under O you’ll find a printed copy of the operations manual. RIGHT

Speaking well is important, yet it is not everything. RIGHT

Due to our recent expansion, our company address has changed to 3400 Industrial Way Suite 2031, Newnan GA 30265. WRONG

Due to our recent expansion, our company address has changed to 3400 Industrial Way, Suite 2031, Newnan GA 30265. RIGHT

When you accept the award this evening, speak with confidence, enthusiasm, and appreciation in your voice. WRONG

When you accept the award this evening, speak with confidence, enthusiasm and appreciation in your voice. RIGHT

8 0

4 years ago

What is one expectation of open-source software? free license difficult expensive hard to acquire

nydimaria [60]

Answer:

free license

Explanation:

An "open-source software" is a type of software that consists of a source code. This source code may be used, modified or distributed by any user and for any purpose, as long as it is permitted by the copyright holder.

So, this means that the developer behind this software may distribute it for "free." Since it is free, the users will not be paying any fees.

So, this makes the answer ",free license," above as correct.

4 0

3 years ago