Calculate the numerical value of cross-price elasticity, exy, in each of the following situations. Do not...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Calculate the numerical value of cross-price elasticity, exy, in each of the following situations. Do not round your interim calculations before obtaining the final solution (i.e. do not clear your calculator). In each case, express the number to two decimal places and include a negative sign where appropriate (i.e. -1.67, not -1.7 or 1.667) but leave positive values without a plus sign (i.e. 1.67, not +1.67). Identify whether the two products in italics are substitute or complementary products. a. The price Consumer X pays each month for access to the Internet decreases from $80 to $40, causing the quantity demanded of e-magazines she reads on her computer to rise from 3 to 5. The numerical value of cross-price elasticity is The Internet and e-magazines are (Click to select) products. b. The quantity demanded of do-it-yourself hair-cutting sets increases from 5,000 to 10,000 when the average price of a hairstylist's cut rises from $40 to $60 per hour. The numerical value of cross-price elasticity is products. Do-it-yourself hair-cutting sets and hairstylist's cuts are (Click to select) c. A fall in the average price of smartphones from $600 to $400 increases purchases of smartphone apps from 1 million to 3 million per month. The numerical value of cross-price elasticity is Smartphones and smartphone apps are [(Click to select) products. Calculate the numerical value of cross-price elasticity, exy, in each of the following situations. Do not round your interim calculations before obtaining the final solution (i.e. do not clear your calculator). In each case, express the number to two decimal places and include a negative sign where appropriate (i.e. -1.67, not -1.7 or 1.667) but leave positive values without a plus sign (i.e. 1.67, not +1.67). Identify whether the two products in italics are substitute or complementary products. a. The price Consumer X pays each month for access to the Internet decreases from $80 to $40, causing the quantity demanded of e-magazines she reads on her computer to rise from 3 to 5. The numerical value of cross-price elasticity is The Internet and e-magazines are (Click to select) products. b. The quantity demanded of do-it-yourself hair-cutting sets increases from 5,000 to 10,000 when the average price of a hairstylist's cut rises from $40 to $60 per hour. The numerical value of cross-price elasticity is products. Do-it-yourself hair-cutting sets and hairstylist's cuts are (Click to select) c. A fall in the average price of smartphones from $600 to $400 increases purchases of smartphone apps from 1 million to 3 million per month. The numerical value of cross-price elasticity is Smartphones and smartphone apps are [(Click to select) products.
Expert Answer:
Related Book For
Applied Statistics From Bivariate Through Multivariate Techniques
ISBN: 9781412991346
2nd Edition
Authors: Rebecca M. Warner
Posted Date:
Students also viewed these economics questions
-
SUBJECT- BANKING Corporate Governance is an integral part of the Management Control System (MCS) which directly reflects in maintaining the image and the reputation of the company and its strategy...
-
9. Suppose we are solving for Arb with A E Rmxn being rank deficient (minimum norm solution) (a) For b(A) why wouldn't the solution (ATA)-Ab work? (b) Suppose beR(A). Show that the error vector is...
-
From the following information, complete the balance sheet Equity (0) 0 50, current liabilities to total debts ratio 30% Total debt to equity (70%, asset turnover 3 times, Fixed assets to equity...
-
Write a well-developed paragraph that compares/contrasts a character from Good Country People with a character from Seventeen Syllables.
-
1. Do you think that the more gradual implementation of online sales implemented by Gardiners is too safe? Is there a benefit to this careful, planned approach? Are there any risks to the delayed...
-
For the nozzle of problem 9.70, allowing for non-isentropic flow, what is the range of exit tank pressures pb for which (a) The diverging nozzle flow is fully supersonic; (b) The exit flow is...
-
In 2015, the city of San Francisco enacted an ordinance that required health warnings on advertisements for certain sugar-sweetened beverages (SSBs) that read: WARNING: Drinking beverages with added...
-
The following information is available for the pension plan of Radcliffe Company for the year 2014. Actual and expected return on plan assets ...... $ 15,000 Benefits paid to retirees ................
-
How would you import a relational model design and generate a logical model from a relational model?
-
Cardinal Company is considering a five-year project that would require a $2,975,000 investment in equipment with a useful life of five years and no salvage value . The company's discount rate is 14%....
-
Zulu Inc. is considering a proposal to manufacture high-end protein bars used as food supplements by body builders. The project requires use of an existing warehouse, which the firm acquired two...
-
Write an essay which advocate for or against the introduction of bilingual education. Support the position with research.
-
Although all three phase model perspectives help us to account for different aspects of our behavior in conflict situations, for the types of conflict you most frequently experience, which of the...
-
It is December 31, 2016 and Wally needs your help again. He wants you to create his Income Statement for 2016. Please use the following information to create the 2016 Income Statement. o 2016 sales...
-
Do you think that all religions have equal protection? There has been a lot of discussion about conservative Christians feeling attacked for their beliefs, and some in government will advocate for...
-
Develop a list of 5 appropriate community stakeholders for each of the 3 health issues in Central Harlem. The three health issues are Child asthma emergency department visits, Psychiatric...
-
The following information is available for Wildhorse Inc. Accounts receivable Accounts payable Interest payable Salaries and wages expense Notes payable Common stock Inventory $2,100 Cash 4,300 540...
-
Use integration by parts to evaluate the following. Check your answer by taking the derivative. x2e-xdx
-
Refer to Figure 16.1. If a, b, and a*b are all statistically significant (and large enough to be of practical or clinical importance), and c is not statistically significant and/or not large enough...
-
What information should be included in the report of a Chi square test of contingency?
-
What SPSS procedures can be used for data screening of quantitative variables?
-
(a) A photon of energy \(E_{0}\) strikes a free electron at rest in the lab. ("Free" here means the electron is not bound inside an atom.) Is it possible for the photon to be absorbed by the...
-
The quantity \(\lambda_{C} \equiv h / m_{e} c\) is called the "Compton wavelength" of the electron. (a) If a photon scatters off an electron at rest with scattering angle \(\theta=45^{\circ}\), what...
-
The Captain of an interstellar photon-rocket spaceship wishes to maintain a constant acceleration \(a\) in the instantaneous rest-frame of the ship, since that would provide a constant effective...
Study smarter with the SolutionInn App