The demand for fax machines has been estimated to be Q = 1,000 – P + 40 L, where P is the price of the machines and L is the average cost of a 10-minute midday call from Los Angeles to New York. At a fax machine price of $400 and a phone call cost of $10, the cross-price elasticity of demand for fax machines with respect to the price of phone service is:

Cross-price elasticity of demand for fax machine with respect to the price of phone service is 0.412

Explanation:

+ If the cost of a phone call is $10, according to the equation, fax machines demand would be: 1000 - 400 + 40 * 10 = 1,000

+ If the cost of the call is to be increase by 10% which is 10 x 1.1 = $11, fax machines demand would be : 1000 - 400 + 40 *1.1 = 1,040

+ Cross-price elasticity of demand for fax machine with respect to the price of the phone services is calculated as: % change in demand / % change in price; in which:

  % change in price = (change in price) / [( original price + price after change)/2] = 1 / [(10+11)/2] = 9.52%

  % change in quantity = (change in quantity) / [ (original quantity + quantity after change)/2] = 40 / [ (1000 +1040) /2 ] = 3.92%

So, cross price elasticity = 3.92% / 9.52% = 0.412.

the page presents four different kinds of threats that volcanoes pose and what to do before, during, and after an eruption.

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know