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Semenov [28]
3 years ago
7

The quantity demanded of Blu-ray players increased 9% when the price of DVDs increased 5%. What is the estimated cross-price ela

sticity of demand for Blu-ray players? Round your answer to the nearest hundredth.
Business
1 answer:
Mila [183]3 years ago
8 0

Answer:

cross price elasticity of demand = 1.8

Explanation:

cross price elasticity of demand = % change in quantity of X / % change in price of Y

cross price elasticity of demand = 9% / 5% = 1.8

When the cross price elasticity of demand is positive, it means that the products are substitutes. If the cross price elasticity is negative, then the products are complements.

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They created efficiencies that streamlined government.

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As Willard’s business grows and propsers, his company’s total assets requirements will equal ___________. total sources of finan
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A soft peg exchange rate may create additional _______________ as exchange rate markets try to anticipate when and how the gover
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7 0
2 years ago
Knowledge Check 01 Identify the simplifying assumptions usually made in net present value analysis. (You may select more than on
steposvetlana [31]

Answer:

All cash flows other than the initial investment occur at the end of periods.

All cash flows generated by the investment project are immediately reinvested at a rate of return equal to the discount rate.

Explanation:

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6 0
3 years ago
LJM Corporation includes two divisions, Shay Division and Patty Division. The Shay Division makes specialized filters, including
alexgriva [62]

Answer:

LJM Corporation

1. The Maximum price that Patty Division should be willing to pay for the filters is: $45.

2. Minimum price that Shay Division should be willing to accept is: $52.

Explanation:

a) Data and Calculations:

                               Shay Division   Patty Division

Costs:

Variable costs              $16                      

Fixed costs                    20

Sales/purchase price    52                      $45

Capacity/requirement  20,000             8,000

Maximum price that Patty Division should be willing to pay for the filters is: $45.

Minimum price that Shay Division should be willing to accept is: $52.

b) The minimum transfer price should be determined based on the variable costs and the opportunity costs.  The opportunity cost for Shay Division is $36 ($52 - $16).  For Patty Division, the maximum price it should be willing to pay is the opportunity cost, which is the price Patty pays when it buys the filters from the market.

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3 years ago
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