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Aleksandr [31]
2 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:
Crank2 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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If $800 is borrowed at 8% interest, find the amounts due at the end of 4 years if the interest is compounded as follows. (Round
Alisiya [41]

Answer:

(i) $133.12

(ii) $297.6

(iii) $300.8

(iv) $301.6

Explanation:

From the compounding formula;

Future value = Present value (1+\frac{r}{m}) ^{mn}

where r is the rate, m is the number of payment per year, and n is the number of years.

Interest = future value - present value

Given that present value = $800, r = 8%, n = 4 years.

(i) annually,

m = 1, so that;

Future value = 800(1.08)^{4}

                     = $933.12

Interest = $933.12 - $800

             = $133.12

(ii) quarterly,

m = 3, so that;

Future value = 800(1+\frac{0.08}{3}) ^{(4x3)}

                      = 800(1.372)

                      = $1097.6

Interest = $1097.6 - $800

             = $297.6

(iii) monthly,

m = 12, so that;

Future value = 800(1+\frac{0.08}{12}) ^{(4x12)}

                     = 800(1.376)

                     = $1100.8

Interest = $1100.8 - $800

             = $300.8

(iv) weekly,

m = 54, so that;

Future value = 800(1+\frac{0.08}{54}) ^{(4x54)}

                     = 800(1.377)

                     = $1101.6

Interest = $1101.6 - $800

             = $301.6

4 0
3 years ago
One perspective describes ________ as an integrative management field that combines analysis, formulation, and implementation in
VikaD [51]

Answer: strategic management

Explanation:

Strategic management is integrative management field that combines analysis, formulation, and implementation in the quest for competitive advantage.

Strategic management simply had to do with the evaluation of business goals, vision of an organisation and objectives. For organizational goals to be achieved, effective strategies must be put in place.

6 0
2 years ago
I want to know what is the correct thing to invest into
vladimir1956 [14]

Answer:

Roth ira

Explanation:

Because you are sort of young, you should invest into a roth ira, because there are retirement tax breaks put on it, plus in an smp 500 account it will grow with the market at about 8% interest per year on average. this is good, because it is pretty much guaranteed growth. that will double the amount of money for 5 or 6 times over creating a nice retirement fund for your old age, but honestly there are other strategies, this is just for sticking money in the ground and forgetting about it, letting it grow for you. low risk, and relatively high reward after a long period of time.

hope this helps

7 0
3 years ago
Some large hardware stores, such as Home Depot, boast of carrying as many as 20,000 different products in each store. This volum
jeyben [28]

Answer:

C. The choice of consumers regarding what to purchase to satisfy their wants and the choice of producers regarding what to produce to maximize profits.

Explanation:

The extremely large amount of products that large hardware stores, such as Office Depot, carry, are most likely a consequence of the combination of these factors. On the one hand, the customers who go to this stores have a particular want, and their purchases are intended to satisfy these wants. On the other hand, the producers also have to make a choice, and they generally chose the products that are most likely to maximize their profits.

5 0
3 years ago
According to the efficient market theory, A. prices of actively traded stocks can only be under-valued in an efficient market B.
Otrada [13]

Answer:

The correct answer to the following question will be Option D.

Explanation:

  • The theory or hypothesis that even as soon as it arrives, all institutional investors obtain as well as act on most of the necessary information or data. Even if this was purely real, there would have been no stronger investing strategy than just a coin flip.
  • As per this principle, the dynamically trading share prices in such a competitive market don't vary from actual measured value or beliefs.

The other choices have no relation to the given circumstance. So choice D is the correct answer to the above.

7 0
3 years ago
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