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LiRa [457]
2 years ago
14

Suppose Nationwide increases the insurance premium they charge for their auto policies by 12 percent. In​ response, the demand f

or State Farm auto policies in a small town increases from 3 comma 000 to 3 comma 300. What is the​ cross-price elasticity of demand for State Farm auto policies in this​ town? Using the midpoint​ formula, the​ cross-price elasticity of demand for State Farm auto policies is nothing. ​(Enter your response rounded to three decimal​ places.)
Business
1 answer:
Ahat [919]2 years ago
6 0

Answer:

0.794

Explanation:

Cross price elasticity of demand measures the responsiveness of quantity demanded of good A to changes in price of good B.

Cross price elasticity of demand = percentage change in quantity demanded of good A / percentage change in price of good B

Midpoint change in quantity demanded = change in quantity demanded / average of both demands

change in quantity demanded = 3300 - 3000 = 300

average of both demands = (3300 + 3000 ) / 2 = 3150

300/3150 = 0.095238 = 9.5238%

Cross price elasticity = 9.5238% / 12% = 0.794

If cross price elasticity of demand is positive, it means that the goods are substitute goods.

If the cross-price elasticity is negative, it means that the goods are complementary goods.

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A cereal company's cost, in thousands of dollars, is represented by the function C ( x ) = 2 x + 4500 and its revenue, in thousa
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Answer:

31,500

Explanation:

Cost function, C (x) = 2 x + 4500

Revenue function, R (x) = 5 x

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         = R(x) - C(x)

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Answer:

The correct option will be a. Late Payment Fee

Explanation:

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Answer:

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9) b. 50 percent

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Purposeful:

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It's clear and concise and doesn't waste the reader's time; length is not rewarded

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