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iragen [17]
2 years ago
11

If the price of Product E decreasing by 2% causes its quantity demanded to increase by 14% and the quantity demanded for Product

F to increase by 17%, what is the cross-price elasticity of demand? Round your answer to one decimal place. What is the relationship between these goods? A) no relationship
B) complements
C) substitutes
Business
1 answer:
Reika [66]2 years ago
5 0

Answer:

B) complements

Explanation:

The cross elasticity shows a relationship between the percentage change in quantity demanded with the percentage change in the price.

In case of the substitute goods, the relation between the price and the quantity demanded is positive that means if the price of goods increased than the quantity demanded is also increased

And, In case of the complementary goods, the relation between the price and the quantity demanded is  negative that means if the price of goods increased than the quantity demanded is decreased

According to the given situation, the most appropriate option is B.

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When a rocky shore erodes at approximately the same rate, we call that a:
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Kuhn Bicycle Company has been manufactring its own seats for its bicycles. The company is currently operating at 100% capacity,
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Answer:

It is cheaper to buy the seats.

Explanation:

Giving the following information:

The company is currently operating at 100% capacity, and variable manufacturing overhead is charged to production at the rate of 60% of direct labor cost. The direct materials and direct labor cost per unit to make the bicycle seats are $8.00 and $9.00, respectively. Normal production is 50,000 bicycles per year. A supplier offers to make the bicycle seats for $21 each. If the bicycle company accepts this offer, all variable manufacturing costs will be eliminated, but the $30,000 of fixed manufacturing overhead currently being charged to the bicycle seats will have to be absorbed by other products.

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8 0
2 years ago
Should gambling casinos advance credit to gamblers
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4 0
2 years ago
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Blizzard [7]

Answer:

Small-scale and flexible; Large-scale and inflexible.

Explanation:

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