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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 
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horsena [70]

Answer:

East Asia's accomplishment in accomplishing a high development rate is a miracle.The example of overcoming adversity centers around outside trade,savings of government and above all in teaching young men and young ladies so that by accomplishing high education level they can accomplish high financial growth.East Asia likewise have a high PPP(Purchasing Power Parity)which helped them to accomplish high growth.Countries like China and Japan are putting more in colleges.  

Fare - situated methodology assumes a significant job being developed of East Asia.Many nations like Japan,Taiwan,China moved to send out polocies to cultivate high econmic growth.Of course,open exchange will be a significant development driven motor and the creating nations will considered it as a most significant weapon in accomplishing growth.Thus,industrialisation is a significant rebound for East Asia to accomplish high financial development.  

Therefore,industralisation,openness to trade,educational accomplishment and import-send out approaches helped East Asia to accomplish high econmic development.  

(b)We know the idea of 'theory of unavoidable losses or Total Factor Productivity.It states that at one point including one extra factor of creation brings about a lessening increment in output.For example,if we utilize laborers to fabricate an item then at a specific level the creation is steady and by utilizing more,the yield decreases.So we can say that the given articulation is valid.  

TFP is a significant factor for high development rate.East Asian nations have accomplished a high growth.Most of this is from factor accumulation.East Asia TFP can't and along these lines the nations lost their normal development achievement.High monetary development brings about low TFP.

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3 years ago
A bear market is distinguished by ________.
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<span>A bear market is distinguished by a declining stock market and decreasing investor confidence. A bear market is when security prices fall and the stock market starts to take a downward turn. The market tries to become self-sustaining so investors start to sell off their stocks and securities. </span>
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Answer:

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