Answer:
Option B:
inferior good; elasticity is negative
Explanation:
The income elasticity of demand is a measure of the rate at which a particular commodity is demanded, even after there is a change in the real income of the consumers.
It is a known fact that for inferior goods, once the real income of the consumers increases there is a higher tendency for them to switch to other premium commodities. Such goods are said to have a negative elasticity.
The income elasticity of demand can be calculated with this formula
percentage change in quantity demanded / percentage change in income.
If this gives a value that is less than 1, it means that the percentage change in the quantity of goods demanded is actually less than the percentage change in the income level of the consumers. Hence, the good is an inferior good. This is because when the consumers are earning more, they buy less of the product.
Answer:
$0 stock basis; $10,000 debt basis
$1,000 (original stock basis) + $4,000 ordinary income − $7,000 distribution = $0 stock basis and a $2,000 distribution in excess of stock basis generating $2,000 of capital gain. Debt basis is not reduced by distributions.
Explanation:
<span>Industry </span><span>Web sites have job listings created for individuals who wish to perform work using trade-specific skills such as plumbing, electrical, welding, teaching, agriculture, and so on. </span>
The answer that fits the blank above would be BALANCE SHEET AND INCOME STATEMENT. The balance sheet serves the copy of the liabilities and assets that a company or firm has recorded for a specific period of time. On the other hand, the income statement shows both the profit and loss that the company has. Therefore, it is based on these two that financial managers are able to calculate ratios.
