In 2019, smileytown consumed 50,000 tubes of toothpaste. in 2020, toothpaste consumption rose to 62,000 tubes. Calculate the per
1 answer:
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Answer:
1.3
Explanation:
Given:
If Good C increases in price by 30% a pound.
This causes the quantity demanded for Good D to increase by 40%.
Question asked:
What is the cross-price elasticity of the two goods ?
Solution:
We can find the cross-price elasticity of the two goods by this formula:
When Good C increases in price by 30% which causes the quantity demanded for Good D to increase by 40%, then the cross-price elasticity of the is Good C and Good D is 1.3.
Answer:
Explanation:
The time (T) = 6 months = 6/12 years = 0.5 years
Interest rate (r) = 6% = 0.06
The stock is priced [S(0)] = $36.50
The price the stock sells at 6 months () = $3.20
European call (K) = $35
The price (P) is given by:
The price of a 6-month, $35.00 strike put option is $1.65