Answer:
c. a significant amount of market power
Explanation:
Cross price elasticity measures the responsiveness of quantity demanded of a good to the changes in price of another good.
If the cross price elascitiy is postive, the goods are subsituites.
If the cross price elasticity is negative, the goods are complementary goods.
If the cross price elasticitiy is low the firm has market power. It means that it's consumers do not change the quantity demanded when the price of the good changes
If the cross price elasticitiy is high, the market has low market power.
I hope my answer helps you.
A budget can help teens start to discern between genuine needs and wants and will show them where their money is going each month. A good budget will provide for both needs and at least some wants and should be flexible and relatively easy to use and understand.
My answer choice would be "B" " The business will have a financial history, which gives you an idea of what to expect and can make it easier to secure loans and attract investors"
Answer:
a. does not shift
b. shifts to the left
c. increases
a. decreases
Explanation:
As a result of the drought affecting the supply of cream, the supply of chocolate would fall. As a result, the supply curve would shift to the left. The demand curve would remain unchanged.
As a result of the leftward shift of the supply curve, the equilibrium price would increase and quantity would fall.
Answer:
b) A free market in tradable permits is typically more efficient that government regulation
Explanation:
- When companies are forced to buy rights to pollute, they are paying a cost for the pollution they create. If they pollute more, they will end paying more for that pollution. (demand of rights to pollute)
- On the other hand, companies that pollute almost nothing can sell rights to pullute saving money: this will create a benefit for companies who take care of environment. (supply of rights to pollute)
- Then, there will be a market of rights to pullute, where some companies will sell and others will buy rights to pullute. In this market, the price of rights to pollute will be determined efficiently.
- Because the production of absolutely every good or service sold in our economy implies pollution, there is a cost society is willing to pay in terms of pollution to get the goods and services it consumes.<em> For example</em>, I am willing to keep buying soda, besides I now for sure its production has certain negative effects on environment. I demand the product, therefore the company (that pollutes) has incentives to keep selling the product.
- The cost we are willing to pay to keep consuming goods will be related to the demand and supply of rights to pollute : companies whose producs are more demanded (by us!) would buy more rights to pollute when neccesary, and companies whose products are not that demanded will buy less rights to pollute, transmiting this results to prices.
- Then, pollution rights became an efficient way of assigning a price to pollution.
