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Studentka2010 [4]
3 years ago
13

If Jack bought 12 DVDs last year when his income was $40,000 and he buys 14 DVDs this year when his income is $43,000, then his

income elasticity of demand is ______________ which means that DVDs are a(n) ______________ good for Jack.
Business
1 answer:
gizmo_the_mogwai [7]3 years ago
5 0

Answer:

His income elasticity of demand is 0.16  which means that DVDs are a(n) normal income elasticity of demand as it is less than 1

Explanation:

In this question, we use the formula of income elasticity of demand which is shown below:

Income elasticity of demand = Percentage change in quantity demanded ÷ Percentage change in income

where,

Percentage change in quantity demanded is calculated by

= New Quantity - Old quantity ÷ New Quantity + Old quantity

= 14 - 12 ÷ 14 + 12

= 2 ÷ 26

= 0.07692

Percentage change in income is calculated by

= New income - Old income ÷ New income + Old income

= $43,000 - $40,000 ÷ $43,000 + $40,000

= $3,000 ÷ 63,000

= 0.47619

Now put these values over the above formula

So, the answer is = 0.07692 ÷ 0.47619 = 0.16

Hence, his income elasticity of demand is 0.16  which means that DVDs are a(n) normal income elasticity of demand as it is less than 1

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All of the following ways that consumer behavior is influenced by laws that are passed by federal, state, and municipal governments, with the exception of, providing incentives to purchase specific brands over others.

<h3>What are the many governmental levels?</h3>

The federal government, state governments, and municipal governments are the three tiers of governance in the United States.

The U.S. Constitution grants Congress, the President, and the Federal courts, respectively, the authority to act as the legislative, executive, and judicial departments of the federal government. Three branches make up the federal government, which is the main and highest level of government in the US.

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To learn more about governmental levels, refer to?

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5 0
1 year ago
When the quantity of coal supplied is measured in kilograms instead of pounds, the demand for coal becomes
wolverine [178]

Answer:

the quantity of coal becomes more elastic

hope this helps you ☺️☺️

3 0
3 years ago
A member of the board who is a top executive of the firm is called a(n) _____. a. co-manager b. inside director c. outside direc
stira [4]

Answer:

B) inside director

Explanation:

An inside director is a member of the board of directors that is also an employee of the company. Usually inside directors should be part of the top management of the company, but in some particular cases that may not apply (e.g. in European cooperatives unions are represented by one member in the board).

It doesn't matter if the directors are inside or outside directors (don't work in the company), they all have a duty of care to the company.

3 0
3 years ago
Black and Decker decides to discontinue producing toasters in lieu of more versatile toaster ovens. In the process of discontinu
Andru [333]

Answer:

The correct answer is Gain or loss on the sale of equipment as part of continuing operations.

Explanation:

If a gross profit on sales is generated in the process of selling an item of property, plant and equipment, but additional expenses are also incurred, the only thing that is recognized in the income statement is the net profit.

Among the accounts of the income statement, only one record is made with the net profit that occurred in the process of the sale of the asset. Although the final effect on the income statement is the same as it had under the old regulatory framework, it can be said that with that single record among the income statements, what is sought is that high gross income and expenses are not shown high, as this could distort the different financial analyzes that will be carried out at the end of the year.

6 0
3 years ago
True or false: Contributions of cash and property to a corporation in exchange for shares of the corporations stock can be tax d
LUCKY_DIMON [66]

Answer:

True

Explanation:

According to the United States of America Code, under section 351, which basically deals with the transfer to a corporation controlled by the transferor, it is TRUE that contributions of cash and property to a corporation in exchange for shares of the corporation stock can be tax-deferred.

Hence, it can be concluded that the correct answer to this question is definitely TRUE.

5 0
3 years ago
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