Below, you are provided with the value of the cross price elasticity of demand between two goods. You will use this information to identify the percentage change in the quantity demanded for that good that arises from a particular percentage price change of another related good. You will also identify whether the related good is a substitute or complement. Part 1: Complete the statement below. The cross price elasticity of demand captures the percent change in the (quantity demanded, price) of one good that results from a percent change in the (quantity demanded, price) of a related good. Suppose that economists calculate the cross price elasticity of demand between milk and orange juice to be -0.3 for milk.
Part 2: When the price of orange juice increases by 5%, by what percentage does the quantity demanded of milk change? Is this an increase or a decrease?
Part 3: When the price of orange juice decreases by 10%, by what percentage does the quantity demanded of milk change? Is this an increase or a decrease?
Part 4: Based on your answers above, are milk and orange juice substitutes or complements?
Part 5: Complete the statement below. When the cross price elasticity of demand between two goods is positive, the goods must be (substitutes, complements). When the cross price elasticity of demand between two goods is negative, the goods must be (substitutes, complements).

Exercise 18-15 sheffield appliance center is an experienced home appliance dealer. sheffield appliance center also offers a number of services for the home appliances that it sells. assume that sheffield appliance center sells ovens on a standalone basis. sheffield appliance center also sells installation services and maintenance services for ovens. however, sheffield appliance center does not offer installation or maintenance services to customers who buy ovens from other vendors. pricing for ovens is as follows. oven only $790 oven with installation service 850 oven with maintenance services 970 oven with installation and maintenance services 990 in each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $180. additionally, the incremental amount charged by sheffield appliance center for installation approximates the amount charged by independent third parties. ovens are sold subject to a general right of return. if a customer purchases an oven with installation and/or maintenance services, in the event sheffield appliance center does not complete the service satisfactorily, the customer is only entitled to a refund of the portion of the fee that exceeds $790. assume that a customer purchases an oven with both installation and maintenance services for $990. (b) indicate the amount of revenue that should be allocated to the oven, the installation, and to the maintenance contract.

Amano s preguntes cationing to come fonds and consumer good 8. why did the u.s. government use rationing for some foods and consumer goods during world war ii?

Jaguar has full manufacturing costs of their s-type sedan of £22,803. they sell the s-type in the uk with a 20% margin for a price of £27,363. today these cars are available in the us for $55,000 which is the uk price multiplied by the current exchange rate of $2.01/£. jaguar has committed to keeping the us price at $55,000 for the next six months. if the uk pound appreciates against the usd to an exchange rate of $2.15/£, and jaguar has not hedged against currency changes, what is the amount the company will receive in pounds at the new exchange rate?