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2 years ago

For which pairs of goods is the cross-price elasticity most likely to be positive?.

Business

1 answer:

algol132 years ago

6 0

The pairs of goods for which the cross-price elasticity would be postive are pens and pencils.

<h3>What is cross-price elasticity?</h3>

Cross price elasticity of demand measures the percentage change in the quantity demanded of good A to percentage change in the price of good B.

If cross price elasticity of demand is positive, it means that the goods are substitute goods. Substitute goods are goods that can be used in place of another good.

Here are the options of this question:

a. peanut butter and jelly

b. bicycle frames and bicycle tires

c. pens and pencils

d. college textbooks and iPods

To learn more about price elasticity of demand, please check: brainly.com/question/18850846

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Which economic system leaves production decisions completely up to the producers? 1. mixed economy 2. command economy 3. planned

ozzi

Answer:

4. free-market economy

Explanation:

Free-market economy -

A free market refers to the economic system which depends on the demand and supply , where the control of government is nil , is referred to as free - market economy.

It helps to provide all the voluntary exchange occurring in the economy.

The range of the free market economy of a particular country , is present in between very large or completely black market.

Hence, from the given statement of the question,

The correct term is free - market economy.

7 0

3 years ago

You’ve recently learned that the company where you work is being sold for $300,000. The company’s income statement indicates cur

chubhunter [2.5K]

Answer:

Explanation:

Data provided in the question:

Present value of the company, PV = $300,000

Current Profits, π₀ = $11,000

Interest rate, i = 9% = 0.09

Now,

we know,

$PV = \pi_0(\frac{1+i}{1-g})$

here,

g is the growth rate

on rearranging, we get

g = $i - \frac{(1+i)\pi_0}{PV}$

on substituting the respective values, we get

g = $0.09 - \frac{(1+0.09)\times11,000}{300,000}$

g = 0.05

g = 0.05 × 100%

= 5%

7 0

3 years ago

Why is it important to understand which insurance network you are in

spin [16.1K]

Answer:

Because different insurance networks provide seperate benefits. For example a health insurance provider would give you injury-related insurances etc.

8 0

3 years ago

For each of the following unrelated situations, calculate the annual amortization expense and prepare a journal entry to record

Montano1993 [528]

Answer:

(a) Debit Amortization expense - Patents for $43,750; and Credit Patents for $43,750.

(b) Debit Amortization expense - Patents for $5,230; and Credit Patents for $5,230.

Explanation:

(a) A patent with a 10-year remaining legal life was purchased for $350,000. The patent will be commercially exploitable for another eight years.

Annual amortization expenses = Purchase cost of the patent / Number of commercially exploitable years = $350,000 / 8 = $43,750

Therefore, the journal entries will look as follows:

General Journal

Description Debit ($) Credit ($)

Amortization expense - Patents 43,750

Patents 43,750

(To record patent amortization.)

(b) A patent was acquired on a device designed by a production worker. Although the cost of the patent to date consisted of $52,300 in legal fees for handling the patent application, the patent should be commercially valuable during its entire remaining legal life of 10 years and is currently worth $400,000.

Annual amortization expenses = Legal fees / Remaining legal life = $52,300 / 10 = $5,230

Therefore, the journal entries will look as follows:

General Journal

Description Debit ($) Credit ($)

Amortization expense - Patents 5,230

Patents 5,230

(To record patent amortization.)

(c) A franchise granting exclusive distribution rights for a new solar water heater within a three-state area for five years was obtained at a cost of $70,000. Satisfactory sales performance over the five years permits renewal of the franchise for another three years (at an additional cost determined at renewal).

Annual amortization expenses = Cost of acquiring the franchise / Number of years acquired = $70,000 / 5 = $14,000

Therefore, the journal entries will look as follows:

General Journal

Description Debit ($) Credit ($)

Amortization expense - franchise 14,000

franchise 14,000

(To record franchise amortization.)

4 0

3 years ago

David works for a large steel company in ohio and regularly uses his private email to communicate company secrets at home and ab

SCORPION-xisa [38]

Based on the scenario above, this is an example of treason. Treason is an act where an individual commit acts that shows that he or she is betraying his or her own country. An example of this is where an individual spill secrets of his or her own country that is private to other country in means of betraying his or her own.

8 0

3 years ago