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Andrej [43]
2 years ago
7

Suppose you get $500 for your birthday. you spend $400 and save the remaining $100. hence, the marginal propensity to save or mp

s is equal to:_______
Business
1 answer:
Makovka662 [10]2 years ago
5 0

Assuming that you received $500 for your birthday, spent $400 of it, and saved the remaining $20. There are 20 MPs, or marginal propensities to save.

MPS= change in savings/change in income. A change in income of $500 changes savings by $20

<h3 /><h3>Why Do People Have a Marginal Propensity to Consume?</h3>
  • The opposite of MPS is the marginal propensity to consume (MPC). The link between income and consumption is quantified with the aid of MPC.
  • By dividing the change in spending by the change in income, one can determine their marginal propensity to consume.
  • In order to calculate how much spending rises for every dollar of increased income, MPC measures this relationship.

To learn about more Marginal propensity, visit:

brainly.com/question/13957387

#SPJ4

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8 0
3 years ago
A firm will experience a loss when its revenue is less than its expenses
tatiyna
The answer for this question is True
5 0
3 years ago
Radar Company sells bikes for $490 each. The company currently sells 4,300 bikes per year and could make as many as 4,620 bikes
Karo-lina-s [1.5K]

Answer:

Radar's additional income for accepting the order is calculated as follows:

Sales - 320 x $460 = $147,200

less Cost of Sales = 320 x $180 + $48,000 = $105,600

Additional Income = $41,600

Explanation:

The additional income of $41,600 is $147,200 - $105,600, which is the result of deducting cost of sales from Sales.

The cost of sales includes the variable cost per bike, including the incremental fixed costs ($48,000) to make this order.

To make a decision whether to accept an order or not, the company needs to consider all variable costs, including the incremental fixed costs.  The resulting additional income is what is available to offset the fixed costs.

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3 years ago
When more than one vehicle is stopped at an intersection, which vehicle has the right-of-way?
julia-pushkina [17]
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5 0
3 years ago
Read 2 more answers
It will cost $7,500 to acquire a cotton candy cart. Cart sales are expected to be $3,800 a year for four years. After the four y
Allushta [10]

Answer:

It will take 1.97 years to payback the machine.

Explanation:

Giving the following information:

It will cost $7,500 to acquire a cotton candy cart. Cart sales are expected to be $3,800 a year for four years.

We need to determine the amount of time required to payback the machine.

Year 1= 3,800 - 7,500= -3,700

Year 2= 3,800 - 3,700= 100

3,700/3,800= 0.97

It will take 1.97 years to payback the machine.

5 0
3 years ago
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