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guapka [62]
3 years ago
6

After major hurricanes like Katrina, many ethical home repair and building supply businesses continue to charge pre-hurricane pr

ices to their customers, even though due to the huge increase in demand they could charge much more. These firms probably recognize that______________.
Business
1 answer:
cricket20 [7]3 years ago
8 0

Answer:

Demand for home repair and building supply is INCOME ELASTIC

Explanation:

One reason why many ethical home repair and building supply businesses continue to charge pre-hurricane prices to their customers, even though due to the huge increase in demand they could charge much more. These firms probably recognize that demand for home repair and building supply is INCOME ELASTIC.

Although there was no direct fall in income however the loss of property means a negative impact on already earned income. Hence charging higher prices because of higher demand will be a misunderstanding of the income elasticity of demand.

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3 years ago
According to the chart below, which sets of IQ scores fall in the bottom 50th percent of frequency?
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The green one
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lukranit [14]

Answer:

A). determines groups and assigns work activities

Explanation:

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4 0
3 years ago
A U.S. firm holds an asset in Great Britain and faces the following scenario:
Lady_Fox [76]

Answer:

C) Sell £2,278.13 forward at the 1-year forward rate, F1($/£), that prevails at time zero.

Explanation:

given data

                     State 1           State 2               State 3

Probability      25%            50%                      25%

Spot rate      $ 2.50 /£    $ 2.00 /£            $ 1.60 /£

P*                   £ 1,800       £ 2,250             £ 2,812.50

P                     $4,500          $4,500               $4,500

solution

company holds portfolio in pound. so to get hedge, they will sell that of the same amount.

we get here average value of the portfolio that is

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The average value of the portfolio = 2278.13

so correct option is C) Sell £2,278.13 forward at the 1-year forward rate, F1($/£), that prevails at time zero.

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4 years ago
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