Answer:
The cross elasticity of demand is zero
Explanation:
Cross elasticity of demand measures the percentage change in the quantity demand of a product occasioned by a change in the price of another but related commodity.
If the the commodities are complements, the cross of elasticity of demand between them would be negative. his implies an increase(decrease) in the price of one would lead to a decrease(increase) in the demand of the other.
If the the commodities are substitutes, the cross elasticity of demand between them would be positive. This implies an increase(decrease) in the price of one would lead to a increase (decrease) in the quantity demand of the other.
Where the cross elasticity of demand is zero, this implies that the goods are not in any way related. This implies that a change in the price of one would produce no change in the quantity demand of the other.
Answer:
The correct answer is letter "C": an increase in the bargaining power of suppliers of a critical input.
Explanation:
Porter's Five (5) Forces is an analysis scheme created by Harvard School Professor Michael E. Porter (<em>born in 1947</em>). The ultimate goal of this analysis is to help managers set their expectations because profitability decreases as competition increases. Three of the five forces relate to industry (horizontal) participants - <em>the threat of substitutes established rivals, and new entrants</em>. The other two relate to the vertical participants - <em>the bargaining of suppliers and consumers</em>.
In the case, as airline fuel suppliers are consolidating, this would represent the bargaining of suppliers factor in Porter's theory. They could joint to decide quantities supplied or even prices.
Answer:
its total assets equal to $510 million,
Explanation:
Total assets = Loans + Bonds + Reserves
= $400 million + $80 million + $30 million
= $510 million
Therefore, its total assets equal to $510 million,
Answer:
The correct answer is -3.963%.
Explanation:
According to the scenario, the given data are as follows:
Interest rate = 7.85%
Rate of inflation = 12.3%
So, we can calculate the real interest rate by using the following method:
Real interest rate =[ (1 + Interest rate) ÷ ( 1 + inflation rate) ] - 1
By putting the value, we get,
Real interest rate =[ (1 + 0.0785) ÷ ( 1 + 0.123) ] - 1
= -3.963%
So, the purchasing power of your savings decreased by 3.963%.
