The fact that the value of a company such as eBay increases as more people join and use eBay is characterized as the <u>Network effect.</u>
<h3>What is the Network effect?</h3>
The network effect is used to refer to instances where companies become more valuable when there are more people using the company's services and products.
This is especially common with E-commerce websites like eBay which became more valuable as more people both sold goods on it, and bought from it as well.
Find out more on the network effect at brainly.com/question/28487291
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Answer:
Cross Price Elasticity (Splishy Splashy & Raskels) = -0.8
Cross Price Elasticity (Splishy Splashy & mookies) = 1.2
Mookies are recommended to me marketed with Splishy Splashies.
Explanation:
Substitutes are goods that are inter changeable for a want. Complements are goods that are jointly demanded for a want.
Substitutes price & demand are inversely related, cross price elasticity is negative. Complements price & demand are positively related, cross price elasticity is positive.
Cross Price Elasticity Formula = <u>percentage change in demand </u>= <u>% ∆ D</u>
percentage change in price. % ∆ P
Cross Price Elasticity (Splishy Splashy & Raskels) = <u>% ∆ D (raskels</u>
% ∆ P (splishy splash)
= 4/-5 = -0.8
Cross Price Elasticity (Splishy Splashy & mookies) = <u>% ∆ D (mookies)</u>
% ∆ P (splishy splash)
= -6/-5 = 1.2
Cross price Elasticity (Splishy Splashy & Raskels) is negative, so they are substitute goods. Cross Price Elasticity (Splishy Splashy & mookies) is positive, so they are complementary goods.
Splishy Splash & Mookies are complementary goods. So, Mookies are recommended to me marketed with Splishy Splashies.
The Car (asset) has depreciated in value
Answer:
0.63; rises
Explanation:
The computation of the price elasticity of demand using the mid point formula which is shown below:
= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in price ÷ average of price)
where,
Change in quantity demanded would be
= Q2 - Q1
= 650 units - 590 units
= 60 units
And, average of quantity demanded is
= (650 units + 590 units) ÷ 2
= 620 units
Change in price would be
= P2 - P1
= $1.75 - $1.50
= $0.25
And, average of price is
= ($1.75 + $1.50) ÷ 2
= 1.625
So, after solving this, the price elasticity is 0.63
Since the price of good X rises from $1.50 to $1.75, so the total revenue rises
Answer:
C.
Explanation:
Any liabilities assumed by the shareholder do not reduce the shareholder's basis.