1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Sinking fund cash or cash assets are set aside for a purpose of
IgorC [24]
Sorry you need a little more detail for your question.
5 0
3 years ago
Once a new fashion becomes popular with the lower classes, what would the upper classes do as per the Traditional Adoption theor
photoshop1234 [79]
B. Move away from the fashion
3 0
3 years ago
Comanic Corp. has common stock of $5,400,000, retained earnings of $2,000,000, unrealized gains on trading securities of $100,00
Anna11 [10]

Answer:

b. $7,200,000

Explanation:

Common stock of                                                            $5,400,000

Retained earnings of                                                       $2,000,000

Unrealized losses on available-for-sale securities       (<u>$200,000) </u>

Stockholders' Equity                                                        $7,200,000

Unrealized gains on trading securities of $100,000 is not being added to the stockholders equity because it has been charges in profit and Loss statement and it is reflected in the net Income which is already been included in retained earning. Only Unrealized losses on available-for-sale securities of 200,000 is reported in the Stockholder's equity under separate head in the balance sheet.

7 0
3 years ago
Just need the solution to question one and I would be able to solve the rest. Thank you
barxatty [35]

Answer:

I know this answer ....

Explanation:

i give a hint to u- hydrogen

8 0
3 years ago
An increase in the price of good B resulting from a decrease in the supply of B caused an increase in the demand for good C. Thi
OleMash [197]

Answer:

The correct answer is: substitutes.

Explanation:

A decrease in the supply of good B will cause the supply curve to move to the left. This leftward shift in the supply curve will cause the price of good B to increase.  

The consumers will prefer a cheaper substitute, so when the price of good B increases, the demand for good C will increase.  

This indicates that good B and good C are substitute goods.

8 0
3 years ago
Other questions:
  • According to the market theory of wage determination, under what circumstances will wages for a particular group be highest?
    8·2 answers
  • Ahnberg Corporation had 560,000 shares of common stock issued and outstanding at January 1. No common shares were issued during
    10·1 answer
  • Chicken and tuna fish are substitutes in consumption. Suppose that new technology decreases the cost of catching tuna. This woul
    6·1 answer
  • Which assumed inventory cost flow method: (a) usually parallels the actual physical flow of merchandise? select a method (b) div
    11·1 answer
  • When a nation is in autarky and maximizes its living standard, its consumption and production points are a. beneath the producti
    15·1 answer
  • Describe the current global strategy and provide evidence about how the firm’s resources and competencies support the pressures
    8·1 answer
  • Approximately what percentage of jobs in the United States require some type of post-secondary education?
    6·1 answer
  • How does the assembly line benefit the economy?
    15·1 answer
  • In preparing a company's statement of cash flows for the most recent year, the following information is available:
    9·1 answer
  • As you will see from this agreement, there are different a.p.r.s applied based on how the credit card is used. which transaction
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!