If the maker of a note does not pay at maturity, _________

When her income increased from $10,000 to $20,000, Heather's consumption of macaroni decreased from 10 pounds to 5 pounds and he

maks197457 [2]

Answer:

This statement is true.

Explanation:

The concept of income elasticity measures a change in the demand because of change in the income of the consumer.

It is calculated as the ratio of change in demand to change in income.

A person was earning $10,000. Her income increased to $20,000.

Her consumption of macaroni decreased from 10 pounds to 5 pounds.

While her consumption of soy-burgers increased from 2 pounds to 4 pounds.

Income elasticity for macaroni

= $\frac{\% \Delta Q}{\% \Delta Y}$

= $\frac{\frac{5-10}{5} }{\frac{20,000 -10,000}{10,000} }$

= $\frac{\frac{-5}{5} }{\frac{10,000}{10,000} }$

= $\frac{-1}{1}$

= -1

Income elasticity for soy-burgers

= $\frac{\% \Delta Q}{\% \Delta Y}$

= $\frac{\frac{4-2}{2} }{\frac{20,000 -10,000}{10,000} }$

= $\frac{\frac{2}{2} }{\frac{10,000}{10,000} }$

= 1

So, we see that macaroni has a negative income elasticity, its demand decreases with increase in income. Macaroni is an inferior good.

Soy-burgers sow a positive income elasticity. Their demand increases with increase in income. They are normal goods.

8 0

3 years ago

In an economy open to international trade ________.

Serjik [45]

Answer: D) saving equals investment as long as NX = 0

Explanation:

The last option was incomplete as it should have said ...NX = 0.

The Income/GDP of a country that is open to international trade is calculated as follows:

Income = Consumption + Investment + Government spending + Net exports

Y = C + I + G + NX

If NX = 0 then the formula becomes:

Y = C + I + G

Investment in this scenario is therefore:

I = Y - C - G

This is the same as savings as savings is calculated by subtracting consumption and government spending from the total income. This is because government spending is derived from taxes so the cash that people get to save is their income less than their taxes and consumption expenses.

S = Y - C - G = Y

4 0

2 years ago

Marigold Corp. bought a machine on January 1, 2011 for $806000. The machine had an expected life of 20 years and was expected to

lidiya [134]

Answer: Marigold should record $134,750 as an impairment loss on July 1, 2021

Explanation:

Given that

Cost of the machine= 806,000

Expected life= 20 years

Time between January 1, 2011 and July 1 2021 = 10 1/2years

salvage value $76000.

Fair value= $288, 000

We know that the

Carrying amount /Book Value of machine = Cost of the machine- (Cost of the machine-salvage value)/expected life x time (ie from 2011 and 2021)

Carrying amount of machine =806,000 - [(806,000-76,000)/20 x 10.5 years]

=806,000 -383,250=$422,750

Asset is impaired when the Book value is more than net realizable value,

Here, The Book Value of $422,750 is greater than net realizable value,$395000.

Therefore loss on Impairment= Carrying amount - Fair value

$422,750-$288000

=$134,750

5 0

3 years ago

The repayment of a note payable is classified in the statement of cash flows as a(n): _______

kobusy [5.1K]

The repayment of a note payable is classified in the statement of cash flows as a financing activity.

The financing activity in the cash flow statement focuses on how a firm raises capital and pays it back to investors through capital markets. The largest line items in the cash flow from financing activities statement are dividends paid, repurchase of common stock, and proceeds from the issuance of debt.

The cash flow from financing activities helps investors see how often and how much a company raises capital and the source of that capital.

To know more about financing activities here:

brainly.com/question/16377227

#SPJ4

8 0

2 years ago

You purchased a share of SPCC for $100 and expect to receive a dividend of $5 in one year. If you expect the price after the div

Elenna [48]

Answer:

The answer is 15%

Explanation:

(P1 - Po) / Po + D

Where P1 is the price of the share at the end of the year

Po is the price of the share at the beginning of the year

D is the Dividend receceived

P1 is $110

Po is $100

And Dividend is 5%

($110 - $100) / $100 + 5 %

$10/100 + 5%

10% + 5%

= 15%

The total return will you have earned over the year for the purchase of a share of SPCC is 15%

3 0

3 years ago

If the maker of a note does not pay at maturity, __________.