Question

Question completion Status: be -1.5. Based on this information, we know the goods are An economist estimated the cross-price elasticity for peanut butter a complements b. inferior goods c. substitutes d. inelastic. QUESTION 33 Strategy is a. The art of matching the resources and capabilities of a firm to the opportunities and risks in its environment Ob Developing a resource for the company that is both rare and valuable to create competitive advantage c. Making sure that the resource developed is non-fungible to create a sustainable advantage od. All of the above 6000 units a week when he raised the price of the product from $200 to $2 QUESTION 34 Jim saw a decrease in the quantity demanded for his firm's product from 8000 to Based on this information, the price elasticity of demand for Jim's product is al b less than 1 c. greater than 1 Click Save and Submit to save and submit. Click Save All An
please answer the 3:)

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Answer 1

The correct answer is 'Option A'.

Since the cross-price elasticity of demand is negative, two goods are said to be complements of each other because increase in price of one good will decrease the quantity demanded of the other good that is used with it. So, there is a negative relation. That is why complementary goods have a negative cross-price elasticity of demand.

2. The correct answer is 'Option D'.

Strategy helps to accomplish one or more goals of the organization. It gives a direction to reach at a desired level. So, all the given options are correct.

3. The correct answer is 'Option A'.

It is given that quantity demanded falls from 8,000 units to 6,000 units when the price rose from $200 to $250. The price elasticity of demand can be calculated by the following formula:

$\fn_phv \frac{New\: quantity-\: Old\: quantity}{New\: price-Old\: price}\times \frac{Old\: price}{Old\: quantity}$

$\fn_phv \frac{6,000-8,000}{250-200}\times \frac{200}{8,000}$

$\fn_phv \frac{-2,000}{50}\times \frac{200}{8,000}$$\fn_phv \frac{-2,000}{50}\times \frac{200}{8,000}=-1$

Therefore, the price elasticity of demand is 1 (in absolute terms).