Please help me with this!! Please provide an explinations with the graph of how
ID: 2506283 • Letter: P
Question
Please help me with this!! Please provide an explinations with the graph of how you got your answer! Thanks!!
Suppose that when the price of root beer rises 10%, the quantity of pizza demanded falls 20%. This would mean that pizza and root beer are
substitutes, with a cross price elasticity of 0.5.
complements, with a cross price elasticity of 0.5.
substitutes, with a cross price elasticity of 2.0.
complements, with a cross price elasticity of 2.0.
One of the most important determinants of a good's price elasticity of demand is
the profits of suppliers.
the numbers of buyers in the market.
the ease with which consumers can substitute other goods for that product.
the cost of producing the good.
Income elasticity relates to
a movement down a demand curve.
a movement up a demand curve.
a horizontal shift in a demand curve.
the percentage change in quantity demanded divided by the percentage change in the price.
Use the following cost information for the Creamy Crisp Donut Company to answer questions 16-23:
Entrepreneur's potential earnings as a salaried worker = $50,000
Annual lease on building = $22,000
Annual revenue from operations = $380,000
Payments to workers = $120,000
Utilities (electricity, water, disposal) costs = $8,000
Entrepreneur's potential economic profit from the next best entrepreneurial activity = $80,000
Entrepreneur's forgone interest on personal funds used to finance the business = $6,000
Refer to the above data. Creamy Crisp's implicit costs, including a normal profit are:
Refer to the above data. Creamy Crisp's economic profit is:
Output
Average
fixed
cost
Average
variable
cost
1
$120
$40
2
60
30
3
40
25
4
30
30
5
24
40
6
20
55
Refer to the data. The total cost of producing 5 units of output is:
$400
$320
$200
$64
substitutes, with a cross price elasticity of 0.5.
complements, with a cross price elasticity of 0.5.
substitutes, with a cross price elasticity of 2.0.
complements, with a cross price elasticity of 2.0.
Explanation / Answer
1) complements, with a cross price elasticity of 2.0.
2)the ease with which consumers can substitute other goods for that product.
3)a horizontal shift in a demand curve.
4)Creamy Crisp's implicit costs, including a normal profit are: $136,000
5)Creamy Crisp's economic profit is: $94000
6)The total cost of producing 5 units of output is: $320
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