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alexdok [17]
3 years ago
13

Suppose the demand function for good X is given by: where is the quantity demanded of good X, is the price of good X, and is the

price of good Y, which is related to good X. Using the midpoint method, if the price of good X is constant at $10 and the price of good Y decreases from $10 to $8, the cross price elasticity of demand is about:_________
Business
1 answer:
Julli [10]3 years ago
3 0

Answer:

Quantity demanded is -0.4

Explanation:

Quantity demanded is -0.4 if the prices decline from $8 to $10. The cross price elasticity is the change in quantity demanded for the goods when the price of other goods changes. The price change can be minor and the quantity demanded change can be high.

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For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP
Bumek [7]

Answer:

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3 years ago
Who determines the price in perfect markets?
Trava [24]

Answer:

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Explanation:

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5 0
3 years ago
Piazza, a pedestrian, was injured when struck by a vehicle driven by Delaney, who ran a stop sign. At the time of the accident,
Ghella [55]

Answer:

Piazza should sue DGA Corporation because he (or she?) was struck by a company vehicle and the driver was acting within the scope of his normal employment tasks. Piazza might also sue Delaney along with DGA, since DGA is a small corporation and as a corporation is considered a separate legal entity whose shareholder equity might be really low.  

Piazza can sue for compensatory damages including pain and suffering, medical bills and lost wages.

6 0
3 years ago
Joe decided to start washing cars on his street. The other kids in the neighbourhood noticed Joe was making a lot of money washi
Norma-Jean [14]

Joe decided to start washing cars on his street. The other kids in the neighborhood noticed Joe was making a lot of money washing cars and decided to open their own car wash. When they opened their own car wash, the equilibrium price decreased and the equilibrium quantity increased.

The price at which the quantity provided and demanded are equal is referred to as the equilibrium price. It is established by where the demand and supply curves cross. If more goods or services are produced than are needed to satisfy demand at the going rate, there is a surplus, which pushes prices lower.

Reduced demand will result in a drop in the equilibrium price and a reduction in supply. With everything else remaining constant, an increase in supply will result in a decrease in the equilibrium price and an increase in the amount required. The equilibrium price will increase as the supply declines, while the quantity needed will go down.

Learn more about equilibrium price and quantity here

brainly.com/question/22569960

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8 0
1 year ago
Suppose that TapDance, Inc.’s, capital structure features 65 percent equity, 35 percent debt, and that its before-tax cost of de
stealth61 [152]

Answer:

WACC 8.53600%

Explanation:

WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})

The Weighted average cost of capita lconsiders the weight of the equity times the cost of it.

And the wight of the dbet times the cost of financing after the tax shield.

Ke 0.11000

Equity weight 0.65

Kd 0.06

Debt Weight 0.35

t 0.34

WACC = 0.11(0.65) + 0.06(1-0.34)(0.35)

WACC 8.53600%

7 0
3 years ago
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