1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
DaniilM [7]
2 years ago
10

The demand for a luxury good whose purchase would exhaust a big portion of one's income is

Business
1 answer:
stira [4]2 years ago
5 0

Answer:

Relatively price elastic

Explanation:

<u>Price elasticity is defined as the percentage change in quantality demanded with respect to percentage change in price.   Lets explore it in detail.</u>

  1. Goods whose quantity demanded remains stable irrespective of the change in price (in percentage terms), have perfectly price inelastic demand.  
  2. Goods whose quantity demanded changes less (in percentage terms) then the change in their price (in percentage terms), have relatively price inelastic demand.
  3. Goods whose quantity demanded disappears with even a negligible change in price (in percentage terms), have perfectly price elastic demand.
  4. Goods whose quantity demanded changes more (in percentage terms) then the change in their price (in percentage terms), are relatively price elastic.  

Perfectly inelastic goods are the ones which have no substitute for example oxygen. If firms start selling us oxygen, we will have no other option except to buy it.  Perfectly elastic goods have lots of substitute. So if the price of a product increases with minimal amount, the consumer will shift to its substitutes.  

Items that are considered <u>necessity</u> like bread are <u>relatively price inelastic.</u> <u>Luxury goods</u>, on the other hand, have <u>relatively price elastic demand</u>. Let’s see an example.

Bread is a necessity as it is a staple food. If the price of bread increases from $1 to $2 (100% increase), the consumption will not drop significantly. Instead a person having three meals a day, might come to two meals (33% decrease). Hence demand for bread is relatively price inelastic.

<u>As mentioned in the question, demand for luxury goods whose purchase would exhaust a big portion of one's income is </u><u>relatively price elastic. </u><u>Since it takes a large share of wallet, a slight increase in price will discourage the consumer to spend on it at all (it's not a need so why bother spending).</u>

You might be interested in
A ________ produces goods in advance of customer demand using a forecast of sales and moves them through the supply chain to poi
adoni [48]

Answer:

C.) Push System.

Explanation:

3 0
3 years ago
Roman owns shares in a company called Copnay Telecom Inc.The company's financial performance has been declining over the past fe
docker41 [41]

Answer: D. Transferability of investor ownership.

Explanation:

From the question, we are informed that Roman owns shares in a company called Copnay Telecom Inc. and that the company's financial performance has been declining over the past few months, and the value of its stock has been decreasing.

We are further told that Roman wants to proactively cut his losses and therefore sells his shares and that Jeremy, a trading enthusiast, buys shares in Copnay Telecom because he believes that the share prices cannot go anywhere but up.

The characteristics of a public stock company that this scenario best exemplify is transferability of investor ownership. This was illustrated when Roman transferred his ownership to Jeremy.

3 0
3 years ago
Staffing plan that lists the roles and the proposed reporting structure that are required for the project. Typically, a project
Andru [333]

Answer: Project manager

Explanation:

A project manager is a qualified person in the field of project management. Project managers are responsible for the planning, directing, procurement and the execution of a project. Project managers are the first point of contact when issues arise from various departments in the organization before the problem reaches higher authorities.

The project manager is responsible for project management. The project manager does not really take part directly in the things done to produce the end result, but makes sure there is progress and fulfillment of the organizational goals.

4 0
3 years ago
Read 2 more answers
What was the greatest percentage loss in your total portfolio?
Natasha2012 [34]

-2.99% was the greatest percentage loss in total portfolio.

Subtract the purchase price from the current price and divide the result by the asset's purchase prices to determine the net gain or loss in the portfolio. The above method can be modified to determine a portfolio's percentage return. You will base your calculations on the overall value of your portfolio rather than the stock's acquisition price and market value.

A stock portfolio is a selection of equities you purchase in the anticipation of a profit. You can become a more robust investor by assembling a varied portfolio that spans several industries.

To learn more about portfolio refer here:

brainly.com/question/17165367

#SPJ4

Complete Question:

You'll now need to do some math to compute the percentage change in the value of your total portfolio. For each monthly statement, add up the value of the two funds to get your total portfolio value at the end of that month. Compute the month to month percentage change of the value of your portfolio by subtracting the beginning value from the ending value and then dividing it by the beginning value . What was the greatest percentage loss in your total portfolio?

3 0
1 year ago
Is the following scenario a partnership? Your parents ask you to babysit your sibling for the evening and they give you a long l
solong [7]

Your parents give you a large set of instructions and ask you to watch your brother for the evening. There is no collaboration in this situation.

An agreement between two or more persons to manage a business's operations and divide its assets and liabilities is known as a partnership. In a general partnership corporation, the assets and liabilities are divided equally among all of the partners.

By definition, a partnership firm consists of two or more individuals who pool their resources to create a company and agree to split the risks, rewards, and losses. Examples of common partnership businesses include law firms, medical groups, investment real estate companies, and accountancy groups.

Two or more persons are required. An agreement is required. The firm must distribute its gains. There has to be reciprocal agency.

To learn more about partnership

brainly.com/question/9909227

#SPJ9

7 0
1 year ago
Other questions:
  • This exercise is built around Whole Foods Market’s financial statements from the chapter. Average common shareholders’ equity fo
    12·1 answer
  • ritical analysis Q10 Suppose that unexpectedly rapid growth in real income abroad leads to a sharp increase in the demand for Am
    11·1 answer
  • If a society decides to produce consumer goods from its available resources, it is answering the basic economic question,
    14·1 answer
  • Wildhorse Inc. wishes to accumulate $1,092,000 by December 31, 2030, to retire bonds outstanding. The company deposits $168,000
    7·2 answers
  • Suppose an economy’s national accounts are GNP = 100, C = 70, I = 40, G = 20 and EX = 20 where GNP is gross national product, C
    7·1 answer
  • One bag of flour is sold for $1.00 to a bakery, which uses the flour to bake bread that is sold for $3.00 to consumers. A second
    15·1 answer
  • Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2020 sales forecast is as follows. Quarter HD
    15·1 answer
  • Blackstone Technology is planning to invest in some project using external equity. The company has a beta of 1.1. The return on
    15·1 answer
  • The purpose of preparing a direct materials budget is to ________. multiple choice 1 allocate the cost of raw materials to produ
    5·1 answer
  • Differentiate between electricity geyser and gas geyser​
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!