All categories

1 year ago

) Studies also find that teenagers have a higher price elasticity than do adults. Why might this be true?

Business

1 answer:

Andru [333]1 year ago

5 0

This statement is true. Teenagers have a higher price elasticity than do adults.

This is because teenagers does not have much income to spend so they can shift to other products also. Teenagers are also not addict to smoking or any other habits , Therefore price affects the demand of the product.

Price elasticity is defined as the ratio of the percentage change in quantity demanded due to percentage change in price.

Elasticity having more than 1 are relatively more elastic.

Adults have more income to spent so the demand do not effects due to change in price. As adults are more addicted to smoking then teenagers ,

addicted people did not consume less due to its price change.

To know more about price elasticity:

brainly.com/question/13565779

#SPJ1

You might be interested in

Assume that the full-employment level of output is $2,000 and the price level associated with full-employment output is 100. Als

mariarad [96]

Answer:

MPC = 0.4

Explanation:

Multiplier shows change in income due to change (increase) in investment, or change (decrease) in tax. It is calculated by Marginal Propensity to Consume, as follows -

Multiplier ie k = Δ Income / Δ (govt investment or tax) = 1 / (1 - MPC)

Given : ΔG ie tax fall = 60 ; Targeted income rise = Full employment - actual output = 2000 - 1900 = 100

k = ΔY / ΔG = 100 / 60 = 1.67

k = 1 / (1 - MPC) → 1 - MPC = 1 / k → 1 - MPC = 1 / 1.67 → 1 - MPC = 0.6

MPC = 1 - 0.6 → MPC = 0.4

8 0

2 years ago

Inside Incorporated was issued a charter on January 15 authorizing the following capital stock: Common stock, $6 par, 100,000 sh

marin [14]

Answer:

$1,114,000 - total equity section

Balance sheet extract

common stock (120,000 units) $720,000

common stock share premium $240,000

preference shares (8 000 units) $80,000

preference share premium $36,000

Profit (net income) <u> $ 38,000</u>

$1,114,000

Explanation:

common stock account (100,000 + 20,000) x $6 par value = $720,000

common stock premium per unit is calculated $18 minus par value of $6 = $12. total premium is 12 x 20,000 units issued= $240,000

Preference shares account = (5000+3000) x $10 = $80,000

preference share premium (22 minus 10) = $12 per unit

total preference shares premium is $12 x 3000 issued units= $36,000

8 0

3 years ago

Cox Co. accounts for its inventory using the LIFO cost method. An inventory loss from a permanent market decline of $360,000 occ

kirill115 [55]

Answer:

$360,000

Explanation:

Last in first out (LIFO) is a method used in inventory where the cost of most recently purchased goods is the one to be expensed first. Also current losses are the first to be reported.

An inventory loss incurred in a quarter must not be deferred, but recorded as items within an interim must be reported in the same period they were incurred, unless it can be redeemed before the end of the fiscal year. It is not considered a temporary item.

The loss reported in May will be reported for that quarter in June.

8 0

3 years ago

an economy in which all the boys became farmers when they are adults just as their fathers and grandfathers did would be an exam

sergeinik [125]

That would be an example of traditional economy.

8 0

3 years ago

List the 6 areas of internet

Oxana [17]

Answer:

1. Communication Services.

2. File Transfer.

3. Web Services.

4. Directory Service.

5. Information Retrieval Services.

6. Automatic Network Address Configuration.

Explanation:

I hope it helps! Have a great day!

bren~

4 0

2 years ago