Suppose Clyde always eats ice cream and chocolate syrup together. If the price of syrup increases by 10 percent, and the cross elasticity of demand is -2, the demand for ice cream
A) increases by 5 percent.
B) increases by 20 percent.
C) decreases by 5 percent.
D) decreases by 20 percent.
D
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A conglomerate occurs when:
a. the products of the merging firms were not related in any manner before the merger b. one firm is a producer of products, and the other firm is a producer of services c. one firm is a domestic firm, and the other is a foreign company d. the firms stood in a buyer-seller relationship before the merger e. the merger partners were competitors
In 1996, All-Points Flashlights merged with North Star Flashlights to form a new company called Allstar Flashlights. In 1997, Allstar Flashlights merged with Bright Idea Lightbulbs to form a new company called Bright Star. Then, in 2000 . Bright Star
merged with Wendy's Kites & Stuff, a company that produces paper kites and other toys, to become BSK International. Describe the kinds of mergers that took place.