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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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Zach buys a car for $18,900 with 5% interest over 5 years. What is true about this monthly payment loan?

xeze [42]

Answer:

Zach will pay $4,725 in interest on the loan.

Explanation:

In calculating interest the formula that applies is

I= P x R x T

where I = interest

P = principal amount

R = interest rate

T= time

In the case of Zach

I= $18,900 x 5/100 x 5

I = $18,900 x 0.05 x 5

I =$945 x 5

I =$4,725

Interest for the loan is $4,725

6 0

3 years ago

Read 2 more answers

Alliance Company budgets production of 24,000 units in January and 28,000 units in the February. Each finished unit requires 3 p

Eddi Din [679]

Answer:

Total direct material needed in pounds= 101,400 pounds

Explanation:

Giving the following information:

Each finished unit requires 3 pounds of raw material K that costs $3.00 per pound.

Each month's ending raw materials inventory should equal 35% of the following month's budgeted materials.

The January 1 inventory for this material is 25,200 pounds.

Production:

January= 24,000 units

February= 28,000 units

<u>Direct material budget:</u>

Production= 24,000*3= 72,000 pounds

Desired ending inventory= (28,000*0.35)*3= 29,400 pounds

Total direct material needed in pounds= 101,400 pounds

Purchases= production + desired ending inventory - beginning inventory

Purchases= 101,400 - 25,200

Purchases= 76,200 pounds

Direct material purchase cost= 76,200*3= $228,60

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3 years ago

The Herjavec Co. just paid a dividend of $1.85 per share on its stock. The dividends are expected to grow at a constant rate of

ycow [4]

Answer:

Current price : $24.05

Price in 3 years : $27.05

Explanation:

The Current stock price of Herjavec Co will be determined by the formula given below;

Po = [Do (1 + g) ] / (r - g)

Po = Current price

Do = Current dividend

r = Rate of return

g = growth of dividend

Po = ($1.85 * 1.04) / (0.12 - 0.04)

Po = $1.924 / 0.08

Po = $24.05.

The stock price of Herjavec Co after 3 years will be determined by the formula given below;

P3 = Do (1 + g)^4 / (r - g)

P3 = [$1.85 * (1.04)^4] / (0.12 - 0.04)

P3 = $27.05

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4 years ago

An ad for Bud Light ran six times during a recently televised football game. When measuring IMC results for this ad, six would b

Zepler [3.9K]

Answer: (A.) Frequency

Explanation:

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3 years ago

Okun's law Multiple Choice quantifies the relationship between nominal and real incomes. shows the relationship between the unem

topjm [15]

Answer:

shows the relationship between the unemployment rate and the size of the negative GDP gap.

Explanation:

Okun's law focuses on the relationship that exists between unemployment and economic growth. It's states that the gross domestic product of a nation should grow at about 4% to result in an unemployment rate reduction of 1%.

So it follows that if unemployment rate rises there will be a negative gap in the GDP of a country.

Employed labour is needed to produce output that will grow the economy and the GDP.

However when unemployment increases there is less labour and low output level, resulting in reduction of GDP.

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4 years ago