This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: In 2012 Nike reduced the price of its running shoes by 20 percent. As a result, the substitution ... (Read 140 times)

DelorasTo

  • Hero Member
  • *****
  • Posts: 548
on: Jun 29, 2018
In 2012 Nike reduced the price of its running shoes by 20 percent. As a result, the substitution effect caused
 
  A) the demand for Nike shoes to increase.
  B) people to switch from Adidas shoes and buy more Nikes.
  C) the relative price of Nikes to increase.
  D) the demand curve for Nikes to shift rightward.

Question 2

What is the price elasticity of demand and how is it measured?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

xiaomengxian

  • Sr. Member
  • ****
  • Posts: 311
Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

The price elasticity of demand is a unit-free measure of responsiveness of the quantity demanded of a good to a change in its price when all other influences on buyers plans remain the same. To calculate the price elasticity of demand we divide the percentage change in quantity demanded by the percentage change in price.


DelorasTo

  • Member
  • Posts: 548
Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

dreamfighter72

  • Member
  • Posts: 355
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Methicillin-resistant Staphylococcus aureus or MRSA was discovered in 1961 in the United Kingdom. It if often referred to as a superbug. MRSA infections cause more deaths in the United States every year than AIDS.

Methicilli ...
Did you know?

Chronic necrotizing aspergillosis has a slowly progressive process that, unlike invasive aspergillosis, does not spread to other organ systems or the blood vessels. It most often affects middle-aged and elderly individuals, spreading to surrounding tissue in the lungs. The disease often does not respond to conventionally successful treatments, and requires individualized therapies in order to keep it from becoming life-threatening.

Did you know?

According to the CDC, approximately 31.7% of the U.S. population has high low-density lipoprotein (LDL) or "bad cholesterol" levels.

Did you know?

Every 10 seconds, a person in the United States goes to the emergency room complaining of head pain. About 1.2 million visits are for acute migraine attacks.

Did you know?

Barbituric acid, the base material of barbiturates, was first synthesized in 1863 by Adolph von Bayer. His company later went on to synthesize aspirin for the first time, and Bayer aspirin is still a popular brand today.

Any number of crossovers gives 50 percent recombinants Any number of crossovers gives 50 percent recombinants
Identical twins share 100 percent of their segregating genes. Identical twins share 100 percent of their segregating genes.
One target for expanding medical services involves vaccinations. Only 78 percent of children ages 19 ... One target for expanding medical services involves vaccinations. Only 78 percent of children ages 19 ...
Two areas of reduced cortical volume and one area of increased cortical volume observed in people ... Two areas of reduced cortical volume and one area of increased cortical volume observed in people ...
A free-running circadian sleep–wake cycle 25.3 hours in duration. Despite living in an unchanging ... A free-running circadian sleep–wake cycle 25.3 hours in duration. Despite living in an unchanging ...
Phenotype patterns in the F2 of a dihybrid cross that result from epistatic gene interaction Phenotype patterns in the F2 of a dihybrid cross that result from epistatic gene interaction
Video: Stretch reflex & Tendon reflex

For a complete list of videos, visit our video library