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Lana71 [14]
2 years ago
5

Blake eats two bags of generic potato chips each day. Blake's hourly wage increases from $ 8 to $ 15 , and he decides to stop ea

ting generic chips and instead eats a name-brand potato chip. Use the midpoint method to calculate Blake's income elasticity of demand for generic potato chips. Round your answer to two decimal places.
Business
1 answer:
Oksanka [162]2 years ago
7 0

Answer:

-3.28

Explanation:

Given that,

Initial quantity, Q1 = 2

Final quantity, Q2 = 0

Change in quantity = Q2 - Q1

                                = 0 - 2

                                = -2

Initial income, M1 = $8

Final income, M2 = $15

Change in Income = M2 - M1

                               = $15 - $8

                               = $7

Average quantity:

= (2 + 0) ÷ 2

= 1

Average income:

= (15 + 8) ÷ 2

= 11.5

Therefore,

Percentage change in quantity demanded:

= (Change in quantity demanded ÷ Average quantity) × 100

= (-2 ÷ 1) × 100

= -200%

Percentage change in income:

= (Change in income ÷ Average income) × 100

= (7 ÷ 11.5) × 100

= 60.87%

Income elasticity of demand:

= Percentage change in quantity demanded ÷ Percentage change in income

= -200 ÷ 60.87

= -3.28

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lyudmila [28]

The loanable fund's theory of interest shows that interest rates on loans are determined by supply and demand for funds available for lending because higher rates will be due to higher demand for lending while higher supply can reduce lending.

Loanable funds encompass family savings and/or bank loans. because funding in new capital items is regularly made with a loanable price range, the demand and supply of capital are often mentioned in phrases of the demand and delivery of loanable funds.

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3 0
1 year ago
Shareholders in Frontier Communications were not pleased to learn that the company's market share had changed from 40 to 21 perc
Alja [10]

Answer:

47.5\%

Explanation:

Given: The company's market share had changed from 40 to 21 percentage points.

To find: percent change in market share

Solution:

Change in percentage of company's market share =40-21=19

Percent change in market share = (Change in percentage of company's market share ÷ 40) × 100

=\frac{19}{40}(100)=47.5\%

6 0
3 years ago
The theory of ____________ states that a nation should produce and sell goods to other countries that it produces most efficient
nikitadnepr [17]

comparative advantage theory is the answer

4 0
3 years ago
6 what is electrical Filling ?​
andriy [413]
As charging technology currently has a huge influence on how effortlessly and conveniently drivers can charge their electric vehicles as part of their daily routine, Continental is presenting global innovations for this area of electromobility for the first time.
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2 years ago
Han Corp's sales last year were $425,000, and its year-end receivables were $52,500. The firm sells on terms that call for custo
Zina [86]

Answer:

d. 15.09

Explanation:

425,000 sales

52,500 AR

year of 365 days

<u>Days Sales Outstanding</u>

\frac{52,500}{425,000}\times 365 = 45.088 = 45.09

<u>Average days late</u>

Days \: Sales \: Outstanding - \: Allowed \: credit \: period = average \: days \: late

45.09 - 30 = 15.09

in average customer pays within 45 days.

That is 15.09 days above the allowed credit period.

4 0
3 years ago
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