All categories

3 years ago

As the percentage of the consumer's income accounted for by a particular good decreases, demand for the good will:

1 answer:

7 0

So, let's look at the situation.
Let's say you earn 1000 Dollars. You typically spent 5% of it on pizza - 50 dollars.
but now this percentage will decrease - you will only spend 4 % - 40 dollars. So your budget for this food will be less - you will tend to buy less of this food. So the demand will also decrease.
<span />

You might be interested in

A stock that sold for $22 at the beginning of the year was sell- ing for $24 at the end of the year. If the stock paid a dividen

MrRa [10]

Answer:

11.36%

Explanation:

Given:

Selling cost of the stock at the beginning of the year = $22

Selling cost of the stock at the End of the year = $24

Dividends received = $0.50 per share

Thus,

The actual amount received at the end of the year

= Selling cost of the stock at the End of the year + Dividends received

= $24 + $0.50

= $24.50

thus,

the interest received = $24.50 - $22 = $2.50

therefore, the rate of interest = $\frac{\textup{Interest}}{\textup{Initial amount}}\times100$

the rate of interest = $\frac{2.50}{22}\times100$

the rate of interest = 11.36%

7 0

3 years ago

In 2017, Blake purchased a new home. In addition to the purchase price of $200,000, he paid $700 in legal fees and $2,000 in rec

slavikrds [6]

Answer:

$207,700

Explanation:

Blake's basis in his home in 2017 = purchase price + legal and administrative fees = $200,000 + ($700 + $2,000) = $202,700

Since the deck that Blake added to his home is considered an improvement that is permanent and increases the home's value, it will also increase the home's basis = $202,700 + $5,000 = $207,700

5 0

3 years ago

Owen Company's unadjusted book balance at June 30 is $9,120. The company's bank statement reveals bank service charges of $50. T

Gala2k [10]

Answer:

$10,070

Explanation:

The true cash balance is the balance having considered the effect of the transactions that have happened but are yet to be captured in the books.

Reviewing the transactions,

bank service charges of $50 - This will be deducted from the book balance
Two credit memos are included in the bank statement: one for $940, which represents a collection that the bank made for Owen, and one for $60, which represents the amount of interest that Owen had earned on its interest-bearing account in June - Both will be added to the book balance

Hence the true cash balance

= $9,120 - $50 + $940 + $60

= $10,070

3 0

3 years ago

Karley's setting aside $32,000 each quarter, starting today, for the next three years for an expansion project. How much money w

Mashutka [201]

Answer:

Final Value= $414,135.43

Explanation:

Giving the following information:

Quarterly deposit= $32,000

Number of quarters= 3*4= 12

Interest rate= 0.0545/4= 0.01363

To calculate the final value, we need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= quarterly deposit

FV= {32,000*[(1.01363^12)-1]} / 0.01363

FV= $414,135.43

8 0

3 years ago

An allocation base that causes overhead costs to be incurred is called a(n):

barxatty [35]

It is called A COST DRIVER. A cost driver refers to any factor that causes a change in the cost of an activity. Cost driver is used to assign overhead costs to the quantity of a particular goods that is manufactured. Example of a cost driver is direct labour hours input into a production operation.

7 0

3 years ago