All categories

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.

You might be interested in

On July 4, Cullumber's Restaurant accepts a Visa card for a $1,350 dinner bill. Visa charges a 2% service fee. Prepare the entry

Thepotemich [5.8K]

Answer:

Journal entry

Explanation:

The journal entry is as follows

Cash $1,323

Service charge expense ($1,350 × 2%) $27

To Sales Revenue $1,350

(Being the cash is recorded)

for recording this transaction we debited the cash and expenses as it increase both balances while at the same time the sales revenue is also increased so it is credited

3 0

3 years ago

A firm using a _____ strategy tries to balance the desire for efficiency with the need to adjust to local preferences within var

Svetradugi [14.3K]

Answer: (D) Transnational

Explanation:

The transnational strategy is one of the type of global business strategy in which the various types of products and the services are get promoted globally and this type of strategy basically using the personalized approach for promoting the brands and the products in the market by targeting the consumers or audience.

The main advantage of the transnational strategy is to providing the various types of simultaneous function in the multiple countries.

According to the given question, the company using a transnational strategy for the purpose of balancing the efficiency to adjust the local preferences in the various types of other countries.

Therefore, Option (D) is correct answer.

4 0

3 years ago

What kind of PPE should be worn operating a pit

earnstyle [38]

Answer:

A mask, gloves, gown, face shield.

Explanation:

Try covering up as much as possible, but these are the four most essential protective coverings you should wear while operating a pit. Hope this helps!

5 0

3 years ago

A homebuilder negotiates a deal with a farmer to give the farmer a percentage of the profit on homes the homebuilder builds and

Tcecarenko [31]

Answer:

C. Yes, because the farmer is making a percentage of the profit

Explanation:

If the farmer is being used as sales man and is making a 50% profit on the home he sells, then this means he is an employee and to do his job the right way he needs to have a real estate licence for that.

Hope this Helps.

Goodluck.

4 0

3 years ago

Read 2 more answers

Dakota Corporation decided to issue three-year bonds denominated in 5 million Russian rubles at par. The bonds have a coupon rat

sertanlavr [38]

Answer:

23.39%

Explanation:

From the given information, the amount was raised in rubies, Hence, we will convert them to dollars to be able to pay back the needed obligations.

However, according to the exchange rates, the IRR of dollar cash flow is the actual cost of financing that the company will address.

By applying the EXCEL FORMULA to compute the actual cost of financing, we get;

A B C D E

Coupon 17%

Year 0 1 2 3

Cashflow in

rubles 5,000,000 5000000*17% 5000000*17% 5000000+850

= 850000 = 850000 000

= 5850000

Exchange $0.30 $0.032 $0.034 $0.035

rate

(per rubles) 5,000,000 5,000,000 5,000,000 5,000,000

Cash flow × 0.03 × 0.032 × 0.034 × 0.035

in dollars = $150000.00 27200.00 28900.00 204750.00

IRR 23.39%

8 0

3 years ago