Answer: Substitute
Explanation:
Substitute goods are the goods that can be used for the same purpose. Complement are the goods that are used together e.g. car and petrol.
It should be noted that when the price of a good increase, people move to the substitute and this will being about the rise in the quantity demanded of the other good.
Therefore, as the price of good X rises from $10 to $12, the quantity demanded of good Y rises from 100 units to 114 units shows that the are substitutes.
Answer:
1.1265
Explanation:
The computation of the portfolio beta is shown below:
= Stock Q portfolio percentage × beta of Stock Q + Stock R portfolio percentage × beta of Stock R + Stock S portfolio percentage × beta of Stock S + Stock T portfolio percentage × beta of Stock Q
= 0.25 × 1.28 + 0.25 × 0.45 + 0.15 × 1.78 + 0.35 × 1.22
= 0.32 + 0.1125 + 0.267 + 0.427
= 1.1265
Answer:
The multiplier is useful in determining the change in GDP resulting from a change in spending
Explanation:
A change in autonomous spending will lead to a much larger final change in real GDP because of the multiplier effect. That spending will have a much larger final impact on real GDP.
Answer:
$21.9275
Explanation:
The cost of online banking is $39.99
The cost of checks books is $17.95 per 100. The cost associated with 25 checks
= $17.25/100 x 25
=0.1725 x 25
=$4.3125
The cost of a stamp is 50 cents, which is $0.50
for 25 checks
=$0.50 x 25
=$12.5
The writing fee
=$0.05 x 25
=$1.25
Total cost of using checks
= $4.3125 + $12.5 +$1.25
=$18.0625
the difference between online banking and checks
= $39.99 - $18.0625
=$21.9275
Answer:
Option E
Explanation:
In simple words, the given case illustrates the cost analysis method for choosing target market segments. Under such criterion of selection, the subject company identifies various costs that it must bear in order to operate in some potential segment and after identifying those cost, such company evaluates if there will be any profit left for them in the market.
This method is complex, time consuming and needs experts advise but still is most popular nowadays as it gives most accurate results by identifying various quantitative and qualitative factors.
