Answer
The answer and procedures of the exercise are attached in the following archives.
Consider the excel document where the source of the results is plotted.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
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>
Answer:
Almost every other business in this universe now relies upon group thinking rather than individual approach to anything.
It has several advantages, some of them are pointed out below:
o) Equality bias, when there are group discussion, this means that everyone has a part of say in the final decision and that leads to equality bias, which is beneficial.
o) More alternatives are generated, it is a fact that when an individual takes a decision, he/she is neglecting a lot of other options to explore which could be a lot beneficial for the business.
o) More acceptance of the final decision, Since the final decision taken is with the approval and consent of everyone, there is a possibility that the final decision will be more acceptable.
o) Lastly, It creates Synergy, synergy is the idea that a decision as a whole is better than in parts.
Hope this helps you. Good Luck.
I would say that he had an urgent family emergency. That’d he had to take care of. Hope this helps!
