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LiRa [457]
3 years ago
14

Suppose Nationwide increases the insurance premium they charge for their auto policies by 12 percent. In​ response, the demand f

or State Farm auto policies in a small town increases from 3 comma 000 to 3 comma 300. 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 nothing. ​(Enter your response rounded to three decimal​ places.)
Business
1 answer:
Ahat [919]3 years ago
6 0

Answer:

0.794

Explanation:

Cross price elasticity of demand measures the responsiveness of quantity demanded of good A to changes in price of good B.

Cross price elasticity of demand = percentage change in quantity demanded of good A / percentage change in price of good B

Midpoint change in quantity demanded = change in quantity demanded / average of both demands

change in quantity demanded = 3300 - 3000 = 300

average of both demands = (3300 + 3000 ) / 2 = 3150

300/3150 = 0.095238 = 9.5238%

Cross price elasticity = 9.5238% / 12% = 0.794

If cross price elasticity of demand is positive, it means that the goods are substitute goods.

If the cross-price elasticity is negative, it means that the goods are complementary goods.

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Answer & Explanation: Lena would respond to the buyer's request of wanting a house in the Cuban neighborhood by explaining to her that legally and ethically, she cannot provide housing recommendations based on national origin as it is a form of housing discrimination which is enshrined in the Fair Housing Act. The Act can take several forms, one of which is discrimination based on national origin.

7 0
3 years ago
A monopoly has produced a product with a patent for the last few years. The patent is going to expire. What will likely happen t
denis23 [38]

Answer:

Demand for the patent-holder's product will decrease when the patent runs out.

Explanation:

While there is a patent over a product, only the patent-holder's can sell that product. If there is a monopoly it means that that company is the only one that produce and sell this product.

When the patent run out new competitors will enter the business, so the demand on patents holders will decrease.

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3 years ago
Dante is the owner of HomeThings, a shop that sells home goods. He just launched a Local Catalog ad campaign. Where are two plac
aleksandrvk [35]

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Answer: Options D and E.

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3 0
3 years ago
If you were the leader of a country facing a rebellion, how would you deal with it?
Ilia_Sergeevich [38]
I would try to provide a plan that would be best for all not just the one majority or organisation. I wouldn't discriminate between different races and i'd make sure that all the innocent civilians leave the country safely until the rebellion is over and i'd fight for my country! 
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3 years ago
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