Answer:
uh
Explanation:
If the cross-price elasticity of demand between Good A and Good B is 3 and the percentage change in price of Good A is 5%, what is the percentage change in quantity demanded of Good B
Answer:
Multiple choice questions.
1.The price elasticity of demand is:
a) the ratio of the percentage change in quantity demanded to the percentage change in price.
b) the responsiveness of revenue to a change in quantity.
c) the ratio of the change in quantity demanded divided by the change in price.
d) the response of revenue to a change in price.
2.If demand is price elastic, then:
a) a rise in price will raise total revenue.
b) a fall in price will raise total revenue.
c) a fall in price will lower the quantity demanded.
d) a rise in price won't have any effect on total revenues.
3. Complementary goods have:
a) the same elasticities of demand.
b) very low price elasticities of demand.
c) negative cross price elasticities of demand with respect to each other.
d) positive income elasticities of demand.
4. The price elasticity of demand generally tends to be:
a) smaller in the long run than in the short run.
b) smaller in the short run than in the long run.
c) larger in the short run than in the long run.
d) unrelated to the length of time.
5. If the price elasticity of supply of doodads is 0.60 and the price increases by 3 percent, then the quantity supplied of doodads will rise by
a) 0.60 percent.
b) 0.20 percent
c) 1.8 percent
d) 18 percent.
6. Suppose we know that the price elasticity of demand of good X is equal to -1.2. Then, if its price will increase by 5%, we can predict with certainty that
a) quantity demanded of that good will increase.
b) the revenue of the firm producing that good will increase by 6%.
c) the revenue of the firm producing that good will decrease by 6%.
d) the quantity demanded of that good will decrease by 6%.
e) None of the above.
7. A 10% increase in the price of movie ticket in Westridge 8 leads to a 15% decrease in the number of tickets sold, indicating the demand for movie ticket in Westridge 8 is:
a) elastic.
b) inelastic.
c) unit elastic.
d) Can not tell from the information given.
8. If the cross-price elasticity between two commodities is 1.5,
a) the two goods are luxury goods.
b) the two goods are complements.
c) the two goods are substitutes.
d) the two goods are normal goods.
True/False/Uncertain.
For each of the following statements, say whether it is true, false, or uncertain and explain your answer.
1. It is reasonable to expect the cross price elasticity of demand for golf clubs and golf balls to be positive.
Golf clubs and golf balls are complementary goods. This means that, as the price of golf clubs increases (a positive change), the consumption of golf balls decreases (a negative change). Cross price elasticity of demand is equal to the ratio of these changes and will be negative. The statement is false.
2. If the demand is perfectly elastic, then a shift in the supply curve does not affect the equilibrium price.
True, because a perfectly elastic demand curve is horizontal. Therefore, no matter what the shift is the equilibrium price will always remain the same. (See graph.) S and D graph
3. The demand curve for autos is more elastic than the demand curve for Fords.
False. A Ford can be substituted by a different model. It is not as easy to find a substitute for a car in general. The more substitutes a good has, the more elastic is the demand for that good. Therefore, demand for Fords is more elastic.
4. Suppose you own a "Here Comes the Sun" tanning salon and the demand curve for your services is downward sloping. Further, suppose that a new tanning salon called "Sunny Delight" opens two blocks away from your salon. Tell whether the following three statements are true, false or uncertain and explain your answer.
a. The demand curve for your services shifts to the right.
This new salon is a substitute for your services. After it has appeared, your consumers have more choice, and some of them will start using the new salon. So the demand for your services will decrease, or shift to the left.
The statement is false.
b. The demand for your services becomes more elastic.
One of the factors determining the price elasticity of demand for the good is the number of substitutes. More substitutes - more elastic demand.
The statement is true.
c. The cross-price elasticity of the demand for your services with respect to the price charged by "Sunny Delight" is negative.
These two goods (services) are substitutes. The cross-price elasticity of substitutes is positive, since as the price of one of them increases, the demand for (and therefore the consumption of) the other one increases, too.
The statement
Explanation:
Even though personal selling is the most expensive method of communication on a per-person-reached basis, businesses continue to use personal selling because of advantages in:
Answer:
flexibility and control
Explanation:
Personal selling can be regarded as a way whereby Businesses utilize the action of sales force to get their products sold when there is a face-to-face contact with the customer. The product is promoted by the seller as a result of the seller's knowledge base a specialist, attitude as well as his appearance. They convince the customers.
Which approach of the evolution of management thought attempted to explain the real issues facing managers and provide managers with tools to solve future problems?
The correct answer to this open question is the following.
Although there are no options attached, we can say the following.
The approach of the evolution of management thought attempted to explain the real issues facing managers and provide managers with tools to solve future problems is the quantitative approach to management.
This is correct because this management approach uses techniques that have quantitative advantages in the tools it uses. For instance, it includes numbers, statistics, mathematics models, and even some simulations for computer software that have helped managers and companies to make better decisions based on facts, numbers, probabilities, and forecasts, not only qualitative approaches.
In the corporate world, numbers can be trusted. That is why managers have to be constantly monitoring numbers in different ways to make forecasts and make the best decisions possible in an uncertain business world that faces many variants.
An economic principle states that the lower the price of a product, the greater the quantity consumers will wish to purchase. This principle is based on the critical assumption that
If nominal interest rates are 8% and there's a 3% inflation, what would you expect to to be the real growth of a bank account continue $1000?
Answer:
$50
Explanation:
The real rate of interest is the nominal interest rate adjusted for inflation.
I.e., real rate = nominal rate - inflation rate
real rate = 8% - 3%
=5%
The real growth of $1000 will be
=5/100 x 1000
=$50
Real growth will be by $50
The SBA is a source of assistance that provides small businesses with the following
programs.
Education, Information, and Training
Federal Procurement
Voice for Small Business
Business Financing
Answer:
All of the above
Explanation:
SBA is an abbreviation for Small Business Association. The SBA is a US government agency mandated to promote economic growth through entrepreneurship. The agency supports the growth of small businesses through the provision of resources to help them start and become successful.
The Major ways in which the SBA supports small business include.
Education and trainingConnecting them to sources of affordable creditConnecting to government contractsOffering business adviseAnswer:
all of the above is correct! just took it.
Frederick works in a local government for a certain city. One his primary responsibilities is to check whether the city’s contracts, bids, and tax reports meet certain specific guidelines. Which government career role does Frederick perform.
Answer: B - City administrator
Explanation: took the plato test
When a corporation issues its capital stock in payment for services, the least appropriate basis for recording the transaction is the market value of the shares issued. market value of the services received. the market value of the services received or the market value of the share issues. par value of the shares issued.
Answer:
par value of the shares issued.
Explanation:
In the case when the corporation issued the capital stock with regard to the service payment so the least & appropriate basis for recording the above transaction would be the par value of the shares issued as it would leads to the excess payment
Therefore according to the given situation the last option is right