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3 years ago

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What is the income effect?

2 answers:

Shtirlitz [24]3 years ago

8 0

What is the income effect?

The change in consumption resulting from a change in real income.

When a person is able to change their purchasing power due to a change in the income they are receiving, there is a change in consumption of an item. If someone starts to make more money, they have more ability to purchase a good or service they may not have been able to prior. The income effect can impact the economy negatively and positively depending on whether ot not the income goes up or down for a person.

Daniel [21]3 years ago

6 0

The change in consumption resulting from a change in real income !
Give thanks if correct!

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At the beginning of 2020, Concord Company acquired a mine for $3,251,600. Of this amount, $124,000 was ascribed to the land valu

Sav [38]

Answer:

A. $737,520

B. $530,320

Explanation:

a. Computation for the total amount of depletion for 2020.

First step is to calculate the Depletion Rate

Depletion Rate = ($3,251,600 - $124,000 + $49,600 + $210,800)/12,100,000

Depletion Rate= $3,388,000/ 12,100,000

Depletion Rate= 0.28

Now let calculate the total amount of depletion for 2020.

2020 Total amount of depletion= 0.28 × $2,634,000

2020 Total amount of depletion= $737,520

Therefore the total amount of depletion for 2020 is $737,520

B. Computation for the amount that is charged as an expense for 2014 for the cost of the minerals sold during 2020.

Expense amount charged= ($737,520/$2,634,000)* 1,894,000

Expense amount charged=0.28 *1,894,000

Expense amount charged=$530,320

Therefore the amount that is charged as an expense for 2014 for the cost of the minerals sold during 2020 is $530,320

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Total sales revenue is $1000, total variable costs are $600 and total fixed costs are $1000. The price is $10 per unit. Compute

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By how much did the pace of tuition hikes exceed the 2013 average rate of inflation?

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<span>The pace of tuition hikes exceeded the 2013 average rate of inflation by two and 9/10 (2.9) percent. This was a smaller jump than pace of tuition hikes over the average rate of inflation 2012, which was four and one-half (4.5) percent.</span>

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4 years ago

If the price elasticity of demand for a product is 2. 5, then a price cut from $2. 00 to $1. 60 will:_______

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Increase the quantity demanded by about 25 percent.

<h3>What is the short definition of price elasticity?</h3>

Price elasticity in business and economics refers to how much people, consumers, or producers alter their demand or the quantity supplied in reaction to changes in price or income.
It is mostly used to evaluate how consumer demand has changed as a result of a price change for a good or service.

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learn more about price elasticity of demand here

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