1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lorasvet [3.4K]
3 years ago
11

During a recession, median income falls by 15%. if the demand for grapes falls by 12%, grapes are a(n) _____ good with an income

elasticity of demand of _____. normal; -0.8 inferior; 0.8 normal; 0.8 inferior; -0.8
Business
2 answers:
bekas [8.4K]3 years ago
7 0
During a recession, median income falls by 15%. If the demand for grapes falls by 12%, grapes are a normal good with an income elasticity of demand of 0.8.

To find the income elasticity of demand follow this equation:
income elasticity of demand = change in demand/change of income
income elasticity of demand = 0.12/0.15 = 0.8

Grapes are a normal good because the income elasticity of demand is greater than zero. 
V125BC [204]3 years ago
4 0

During a recession, the median income falls by 15%. If the demand for grapes falls by 12%, grapes are a normal good with an income elasticity of demand of 0.8. This implies the correct answer is 0.8 normal.

Income elasticity demand measures how some factors affect how consumers demand a product.

Some of the factors that could affect the demand for a product include price and income.

<h2>Further Explanation</h2>

Income elasticity demand is meant to reveal the extent to which the rise in consumer’s income affects the demand for a particular product.

Income elasticity can be expressed as:

Income Elasticity of Demand (YED) = % change in quantity demanded / % change in income

From the given question:

  • Change in demand = 0.12
  • Change of income = 0.15

If you substitute the value, then you have:

Income elasticity of demand = 0.12 / 0.15

= 0.8

Normal goods are accompanied by positive income elasticity of demand. This also means that more quantity is demanded as the income of the consumer increases.

However, there are five types of income elasticity of demand and these include

  1. High
  2. Unitary
  3. Low
  4. Zero
  5. Negative

Therefore, during a recession, the median income falls by 15%. If the demand for grapes falls by 12%, grapes are a normal good with an income elasticity of demand of 0.8

LEARN MORE:

  • During a recession, median income falls by 15%. if the demand for grapes falls by 12% brainly.com/question/6226349
  • If the income elasticity of a good is 0.8, what do we know about the good brainly.com/question/13293688

KEYWORDS:

  • recession
  • grapes
  • normal good
  • income elasticity of demand
  • 0.8 normal
You might be interested in
6. Which of the following statements is NOT an element of a well-designed Service System?a. It is consistent with the operating
alekssr [168]

Answer:

e. It effectively separates the back office and the front office so each can focus on their own tasks in order to optimize their departmental performance.

Explanation:

  • A service system is one that is focused on the growth of technology and information system. It's designed to give services that meet the expectations, needs, and wants of clients.  
  • It is apart of service management, sued in service operations, and found in service marketing. It's designed for client contact, capital flows, and the level of customer involvement.
8 0
2 years ago
If an application asks you to indicate a salary range, you should _____.
dangina [55]

Answer:

D

Explanation:

4 0
3 years ago
Read 2 more answers
The most recent financial statements for Cardinal, Inc., are shown here: Income Statement Balance Sheet Sales $23,500 Assets $12
finlep [7]

Answer:

$20,370.5

Explanation:

Net Profit Margin = Net Profit / Sales= 5,168 / 23500 = 0.219915 = 21.99%

Dividend Payout Ratio = Dividends / Net profit = $1,560/$5,168 = 0.3018576 = 30.19%

Increase in Assets = Total Assets / Current Sales * Change in Sales

Increase in Assets = 121,000 /23,500 * (28,300-23,500)

Increase in Assets = 5.1489362 * 4800

Increase in Assets = $24714.89

Increase in Current Liabilities = Current Liabilities / Current Sales * Change in Sales = 0

Earnings Retained = Revised sales * Net profit margin * (1- dividend payout ratio)

Earnings Retained = $28,300 * 21.99% * (1 - 30.19%)

Earnings Retained = $28,300 * 0.2199 * 0.6981

Earnings Retained = $4344.39497

Earnings Retained = $4344.39

External Financing Needed = Increase in Assets - Increase in Current Liabilities - Earnings Retained

External Financing Needed = $24714.89 - $0 - $4344.39

External Financing Needed = $20,370.5

7 0
2 years ago
On december 2017 coolwear had a balance in its prepaid insurance acount of 68,400. During 2018, 106,000 was paid for insurance.
NNADVOKAT [17]

Answer:

$132,400

Explanation:

Calculation for the Insurance expense

Using this formula

Insurance expense= 2017 Ending Balance in prepaid insurance account+ Amount paid for insurance-2018 Ending Balance in prepaid insurance account

Let plug in the formula

Insurance expense=$68,400+$106,000-$42,000

Insurance expense=$132,400

Therefore the Insurance expense recorded 2018 would be $132,400

8 0
3 years ago
There are two ratios which are used to measure airline performance. one measures efficiency while the other measures equipment u
den301095 [7]

Operating ratio-measures the portion of operating revenue that goes to operating expenses, only revenue and expenses generated from passenger and freight transportation are considered

(operating expenses/operating revenue)*100

load factor-measures the percentage of a plane's capacity that is utilized,

(number of passengers/total number of seats)*100

All pilots should be interested in weight and balance control. The two changeable factors that can alter an aircraft's total weight and CG location are loading and fuel management, both of which are under the control of the pilot.

The owner or operator of the aircraft should guarantee that the pilots have access to current information and that the proper entries are made in the records when repairs or modifications are completed. The CG is altered as a result of equipment removal or addition.

To learn more about Airlines load here

brainly.com/question/13318528

#SPJ4

6 0
1 year ago
Other questions:
  • ammi purchases stock in Vivaldi Corporation. Vivaldi Corporation later encounters legal issues and faces significant legal claim
    12·2 answers
  • All of the following are reasons people favor home ownership EXCEPT:
    10·1 answer
  • 2. What's a good way to reduce food costs?
    12·1 answer
  • Which of the following is NOT considered to be one of the three primary functions that all organizations​ perform?
    5·1 answer
  • Identify and explain the four primary types of taxes that businesses pay
    8·1 answer
  • Required: a. Compute gross profit, the goods available for sale, and the cost of goods sold for the merchandiser. Hint: Not all
    5·1 answer
  • Masse Corporation uses part G18 in one of its products.
    11·1 answer
  • Youngstown Rubber reports the following data for its first year of operation. Direct materials used $710,200 Direct Labor 350,00
    11·1 answer
  • What is the term for the idea that some goods will be overused and depleted if not regulated?
    13·1 answer
  • Vaughn Manufacturing began the year with retained earnings of $114000. During 2022, the company issued $84500 of common stock fo
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!