Answer:
<em>Cross-price elasticity of demand = 0.1</em>
Explanation:
We have the formula to calculate the cross-price elasticity of demand as below:
<em>Cross-price elasticity of demand = % change in quantity demanded for product X/ % change in price of product Y</em>
<em />
Starbucks raises its price by 5 percent, so that <em>percentage changes in price of Starbucks' products</em> are 5
McDonald's experiences a 0.5 percent increase in demand for its coffee, so that <em>percentage changes in quantity demanded for McDonald's coffee </em>is 0.5
=> <em>Cross-price elasticity of demand = % changes in quantity demanded for McDonald's coffee/ %changes in price of Starbucks' products</em>
<em>= 0.5/5= 0.1</em>
he should type the whole phrase into a search engine and have quotation marks
Answer:
Option B.. $50,000
Explanation:
DATA
Coupon rate = 5%
issue value = 2000,000
Time period = 6months ( April 1 to October 1)
Expenditure = ?
Solution
Expenditure recorded by the debt service fund can be calculated as
Expenditure = Issue value x Coupon rate x time period
Expenditure = 2,000,000 x 5% x6/12
Expenditure = 50,000
Option B.. $50,000 would be the correct answer
Answer: The risk of stock out = 2.94%
Explanation:
Reorder point is calculated as: Lead time*demand per unit time=45*9=405
While the amount on-hand reaches 422 pounds, the manager was reordering lubricant.
During the lead time, Standard Deviation of Demand =Daily S.D*(Lead time)^0.5=3*(9^0.5)=9
Risk of Stock Out=(422-405)/9 S.D=1.89 S.D
From Normal distribution curve 1.89 S.D=0.0294=2.94%
Therefore, the risk of stock out=2.94%
