1-D.

1-E.

When the price of gasoline went from $2.50 to $3.00 per gallon, the demand for SUVs dropped from 300,000 units to 240,000 units. What is the cross elasticity of demand of SUVs and gasoline prices and the nature of the relationship between the two? -1.22; complementary products. 1.22; substitute products. 0.82 ; substitute products. -0.82 ; complementary products. Finn Products, a start-up company, wants to use cost-based pricing for its only product, a unique new video game. Finn expects to sell 10,000 units in the upcoming year. Variable costs will be $65 per unit and annual fixed operating costs (including depreciation) amount to $80,000. Finn's balance sheet is as follows. If Finn wants to earn a 20% return on equity (ROE), at what price should it sell the new product (Ignore the effect of income taxes)? $81.00 per unit. $75.00 per unit. $78.60 per unit. $79.00 per unit