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Aleksandr [31]
3 years ago
9

Suppose Nationwide increases the insurance premium they charge for their auto policies by 6 percent. In response, the demand for

State Farm auto policies in a small town increases from 1,500 to 1,650. What is the cross-price elasticity of demand for State Farm auto policies in this town?Using the midpoint formula, the cross-price elasticity of demand for State Farm auto policies is _____. (Round to 3 decimal places.)In this instance, auto insurance from Nationwide and auto insurance from State Farm are _____.
Business
1 answer:
Crank3 years ago
4 0

Answer:

1.667

Explanation:

% Change in Quantity Demanded in units = (1650 - 1500 / 1500)*100 = (150/1500) * 100 = 10%

% Change in Price = [(1.06x-x)/x]*100 = (0.06/1)*100 = 6%

Cross-price elasticity of demand is given Ec = (% Change in Quantity Demanded of good / % Change in Price of good)

Cross-price elasticity of demand = 10% / 6%

Cross-price elasticity of demand = 0.10 / 0.06

Cross-price elasticity of demand = 1.6666666667

Cross-price elasticity of demand = 1.667

Therefore, the cross-price elasticity of demand of State Farm Auto Policies is 1.667.

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Finance is best defined as
IRINA_888 [86]

Answer:

the management of money and things that are worth money.

Explanation:

Finance is best defined as the management of money and things that are worth money.

7 0
3 years ago
A factory costs $460,000. You forecast that it will produce cash inflows of $150,000 in year 1, $210,000 in year 2, and $360,000
max2010maxim [7]

Answer:

Explanation:

a.Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)

=150,000/1.12+210,000/1.12^2+360,000/1.12^3

=557580.18

NPV=Present value of inflows-Present value of outflows                  

=557580.18-460,000

=$97580.18(Approx)=Value of factory

b.Hence since net present value is positive;factory is a good investment

(Yes)

7 0
3 years ago
What job did drivers perform on large southern plantations?
Elan Coil [88]
The occupation did drivers perform on vast southern ranches since they managed the work of slaves. On the off chance that slaves did not take after requests, they likewise rebuffed the slaves.

I hope the answer will help you. 
4 0
3 years ago
Major Co. reported 2016 income of $303,000 from continuing operations before income taxes and a before-tax loss on discontinued
Mama L [17]

Answer: $109,080; $145,920

Explanation:

Based on the information that have been provided in the question, the following can be gotten:

The amount for income tax expenses will be:

= 36% of $303,000

= 36/100 × $303,000

= 0.36 × $303,000

= $109,080

The net income will be:

Reported income = $303,000

Less income tax = $109,080

Less loss on discounted operation = $48,000

Net income = $145,920

Loss on discounted operation:

= $75,000 × (1 - 36%)

= $75,000 × (1 - 0.36)

= $75,000 × 0.64

= $48,000

3 0
3 years ago
The income statement for Nadeen, Inc. shows income before income taxes $700,000, income tax expense $210,000 and net income $490
katrin [286]

Answer:

B $4.90

Explanation:

The earnings per share ratio (EPS), is an entities net income after tax that is available the shareholders divided by the weighted average number of shares of common stock that are outstanding during the period of the earnings.

As such, given;

net income after tax = $490,000

number of shares = 100,000

EPS = net income after tax/number of shares

= $490,000/100,000

= $4.90

4 0
3 years ago
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