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
Mumz [18]
3 years ago
9

Suppose that demand for automobiles increases by 25% when consumers' incomes increase by 20%. what is the income elasticity of d

emand for automobiles? round your answer to two decimal places.
Business
1 answer:
Shalnov [3]3 years ago
3 0
Income elasticity of demand is a measure of responsiveness of the quantity of goods or services demanded to a change in the income of the people demanding the good. It is calculated as the ratio of the percentage change in the quantity demanded to the percentage change in income. 
In this case, percentage change in quantity demanded is 25% and percentange change in income is 20%
Therefore, income elasticity = 25/20
                                             =  1.25 
You might be interested in
Equity securities acquired by a corporation which are accounted for by recognizing unrealized holding gains or losses are Group
yawa3891 [41]

Answer

Associate: where a company has holdings of between 20% and 50%.

Minority Interest: where a company has holdings of less than 20%

Parent Company: where a company has holdings of more than 50%.

Explanation:

<u>An associate company </u>(or associate) is a company that owns a business beyond 20% and not more than 50%. In business valuation such a company that has invested significantly in the shares of another company will have voting rights in the board of the acquired company.

<u>Minority Interest</u> is the term used to describe the investments of one company in another company, when such investments are less than 20% of the total value of the acquired company.

<u>Parent Company</u> is a company that owns more than half (50%) of the shares or value of another company.

4 0
3 years ago
A point outside the production possibilities curve represents a combination of goods that is
pochemuha

Answer:

A production combination outside of the PPF is unattainable by the economy with the given resources and technology.

This represents the Concept of scarcity in economics.

If the economy wishes to achieve the production point outside the frontier, they will have to enhance the production possibility capacity by introducing new technology or finding new resources.

Explanation:

4 0
3 years ago
Sharon spent the weekend with her friend amelia. amelia proposed a plan for shoplifting cd's from a local music store. sharon wa
Hatshy [7]
In the given situation, Amelia is wrong. Anyone who is fully aware and  supported any criminal acts is considered a violator of the law. All people who participated in a criminal act is guilty of the crime. 

However, it will only be punishable if there are witnesses and evidence.
8 0
4 years ago
The money spent on domestically produced final goods and services: Group of answer choices is equal to exports minus imports. is
Ad libitum [116K]

Answer:

Explanation:

The money spent on domestically produced final goods and services: is equal to GDP.

<u>Gross domestic product, or GDP, is the total value of all final goods and services produced in the economy during a given year. </u>

GDP is used as a measure of the size of an economy and can also be used to compare the economic performance in other countries.

3 0
3 years ago
A company has 360,000 shares authorized, 200,000 shares issued, and 100,000 shares outstanding. The balance in its Common Stock
Alona [7]

Answer:

$1 par value

Explanation:

The computation of the par value of the stock after the split is given below:

= $200,000 ÷ (100,000 × 2 )

= $200,000 ÷ 200,000

= $1 par value

Hence, the par value of its stock after the split is $1 par value

We simply divide the balance by the number of outsanding shares so that the par value could come

5 0
3 years ago
Other questions:
  • What is the most important thing about meeting new contacts? A. Building your Rolodex B. Overcoming shyness C. Getting referrals
    5·1 answer
  • Riggs Company purchases sails and produces sailboats. It currently produces 1,300 sailboats per year, operating at normal capaci
    15·2 answers
  • A pharmaceutical company announces that it has received Federal Drug Administration approval for a new allergy drug that complet
    15·1 answer
  • Sarah's Muffler Shop has one standard muffler that fits a large variety of cars. Sarah wishes to establish a reorder point syste
    8·1 answer
  • Who are risk takers in search of profits
    12·1 answer
  • A company has the following budget information: Sales: $118,800; COGS: $48,500; Depreciation expense: $1,500; Interest expense:
    11·2 answers
  • A negotiable instrument can function as a substitute for cash.
    11·1 answer
  • An example of a discretionary fixed cost would be: Group of answer choices Taxes on the factory. Depreciation on manufacturing e
    12·1 answer
  • Money that you owe the Internal Revenue Service because you did not pay enough in over the year is known as a ________________.
    15·1 answer
  • One guideline for improving the effectiveness of initial (screening) interviews is to ____.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!