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Applying for a business loan from bank of america

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1.Qiqi, a highly motivated entrepreneur plans on applying for a business loan from Bank of America. She finds out that the percent change in price of business loans increased to 5% last month. This resulted in a 50% percent change in quantity demanded from 1000 applicants to 500 applicants. What is the business loan's price elasticity?

2. Kenny is a terrific athlete as he is the captain of his basketball team. The championship game is this weekend, so he plans on buying new shoes for his entire team from Dick's Sporting Goods, but realizes that the price of socks increased from $5.00 a pair to $8.00 a pair. Now, Kenny only consumes 3 Nike Air Jordan shoes instead of his initial intent of purchasing 10 shoes. What is the cross price elasticity of demand for a Nike Air Jordan shoe with respect to a sock's price?

Reference no: EM131899044

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