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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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On January 15, the end of the first biweekly pay period of the year, North Company’s payroll register showed that its employees
mojhsa [17]

Answer:

Cr. FICA- Social security taxes payable: 2,480

Cr. FICA- Medicare taxes payable: 508

Cr. fed. inc. taxes payable: 2,000

Cr. Employment medical insurance payable: 1,108

Cr. Employee union dues payable: 240

Cr. Salaries Payable: 33,664

Explanation:

Journal entry

Dr. Sales salaries expense: 40,000

Cr. FICA- Social security taxes payable: (40,000×6.2%) 2,480

Cr. FICA- Medicare taxes payable: (40,000×1.45%) 508

Cr. fed. inc. taxes payable: 2,000

Cr. Employment medical insurance payable: 1,108

Cr. Employee union dues payable: 240

Cr. Salaries Payable: 33,664

Salaries Payable

2,480+508+2,000+1,108+240=6,336

40,000-6,336= 33,664

4 0
3 years ago
Fiona signed an agreement to either buy or not buy nick’s vacant lot for $310,000 by a specific date. What's this agreement call
kolezko [41]

Fiona signed an agreement to either buy or not buy nick’s vacant lot for $310,000 by a specific date. This agreement is called a bilateral contract.

<h3>What is bilateral contact?</h3>

A bilateral contract is a contract which is made between two parties. Under this contract, both parties make promises to each other on the terms and conditions. In this contract, the promise of one party turns into a consideration of the other party. It is the most common kind of contract which is binding in nature.

Fiona signed a contract promising to either purchase Nick's vacant lot for $310,000 by a certain date or not. It's referred to as a bilateral contract.

Learn more about the bilateral contracts from here:

brainly.com/question/14527253

#SPJ1

4 0
2 years ago
The Pet Store experienced the following events for the Year 1 accounting period:________.
pogonyaev

Answer:

I used an excel spreadsheet since there is not enough room here

Explanation:

         

Download pdf
6 0
3 years ago
Any right to, or interest, in the land interfering with its use or transfer, or subjecting it to an obligation is known as: ____
S_A_V [24]
I Believe the answe is b
4 0
3 years ago
When marx argued that capitalism “reproduces the class structure,” he meant that?
Lisa [10]
If you are rich, you own the means to make more money. Your son will then take over from you, and the class structure will remain intact. Likewise, if you are poor, you can only afford to work in a factory, you cannot pay for a good education for your child, they'll end up working in a factory  to survive. The class structure remains the same, each generation of rich people will exploit every generation of poor people. That was also why Marx thought the workers must unite and take control of the means of production, so that they would not be exploited. 
6 0
3 years ago
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