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DaniilM [7]
3 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]3 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>

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Leokris [45]

Answer:

A) the range of variation

Explanation:

In statistics, the range is a measure of variation which includes the highest value and the lowest value, in other words, the extreme points.

In this case, the range of variation represents the extreme points at which it is OK to plant our seeds. If we plant seeds more than 13" apart then we aren't doing it correctly, the same if we pant them less than 11" apart.

6 0
3 years ago
What is the future value of a $500 annuity payment over eight years if interest rates are 14 per 14 percent
Charra [1.4K]

Answer:

FV= $6,616.38

Explanation:

Giving the following information:

Annual cash flow= $500

Number of periods (n)= 8

Interest rate= 14%

<u>To calculate the future value, we need to use the following formula:</u>

FV= {A*[(1+i)^n-1]}/i

A= annual cash flow

FV= {500*[(1.14^8) - 1]} / 0.14

FV= $6,616.38

6 0
3 years ago
Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $57,000, and the
gulaghasi [49]

Answer and Explanation:

The computation is shown below:

Contribution Margin for Bat

= $50 - $50

= $0

Contribution Margin for Gloves = $100 - $80

= $20

Now  

Overall Contribution Margin = (0 ×70%) + ($20 × 30%)

= $0 + $6

= $6

Now  

A. Break even sales = Fixed cost ÷ contribution margin

= $57,000 ÷  $6

= 9,500

B.Baseball bats = 9,500 × 70% =6,650

Baseball Gloves = 9,500 × 30% = 2,850

7 0
3 years ago
For a not-for-profit private animal rescue agency, which account should be credited to record a gift of cash from an outside par
sesenic [268]

Answer:

Unrestricted net assets - contributions

Explanation:

Unrestricted net assets are donations made to any nonprofit organization (in this case the animal rescue agency) that can be used for unrestricted general expenses. The rescue agency can use this money for their normal day to day expenses or for whatever other expense that they consider necessary without any type of restriction.

While restricted net assets are donations that must be used for an specific purpose set by the donor.

8 0
3 years ago
g When a company’s resources are valuable, rare, imperfectly imitable, and nonsubstitutable, it has a . Necessary to sustain a c
malfutka [58]

Answer:

Rare resources

Explanation:

Rare resources are unique resources that is not controlled or possessed by many competing firms. Only a small number of competing companies control it. It usually stands out by being distinctive among the set of future competitors. Rare resources are short in supply and capable of persisting over an extended time, this makes it a source of competitive advantage for a company.

7 0
3 years ago
Read 2 more answers
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