Answer:
normal good
elastic demand
Explanation:
Income elasticity of demand measures the responsiveness of quantity demanded to changes in income.
Income elasticity = percentage change in quantity demanded / percentage change in income
percentage change in quantity demanded = (7/2) - 1 = 250%
percentage change in income = (52,000 / 45,000) - 1 = 15.6%
250 / 15.6 = 16.07
If the absolute value of income elasticity of demand is greater than one, it means demand is elastic.
Normal goods are goods that are goods whose demand increases when income increases and falls when income falls
Inferior goods are goods whose demand falls when income rises and increases when income falls.
Answer and Explanation:
The journal entry is given below:
Oct 1
Cash Dr $31,770
To Common stock $31,770
(Being exchange for the common stock is recorded)
Here cash is debited as it increased the asset and credited the common stock as it also increased the equity
Oct 2
No journal entry is required
Oct 3
Office furniture Dr $3,740
To Account payable $3,740
(Being office furniture purchased on an account)
Here office furniture is debited as it increased the asset and credited the account payable as it also increased the liabilities
Answer:
The correct answer is option (a).
Explanation:
According to the scenario, the computation of the given data are as follows:
We can calculate the GDP price index by using following formula:
GDP Price index = (Nominal GDP ÷ Real GDP) × 100
Where, Nominal GDP = 10 × $2 + 30 × $3 + 5 × $1
= $20 + $90 + $5
= $115
And, Real GDP = 10 × $1 + 30 × $1 + 5 × $1
= $45
By putting the value, we get
GDP price index = ( $115 ÷ 45 ) × 100
= 2.5556 × 100
= 255.56
It shows that the owner acknowledges the financial risks and is willing to pay every month to transfer the risk to an insurance company.
Answer:
$ 900,000
Explanation:
Data provided:
Equation for the regression curve is given as:
ŷ = 500 + 4x
now,
y is dependent on x
i.e x is advertising and y is sales
now,
given advertising is $ 10,000
also in the regression curve the value of advertising is put in $ 100s
thus,
the value of x for the given condition = $ 10,000 / 100 = $ 1,000
Substituting the value of x in the equation, we get
ŷ = 500 + ( 4 × $100 ) = $ 900
now,
the value from the equation is obtained in $ 1000s
hence,
the value for sales = ŷ × $ 1000 = $ 900 × 1000 = $ 900,000