Answer:1) how responsive quantity demanded is to changes in income--A 2) income elasticity of demand for butter is 0.11. That means butter is a luxury good---A
Explanation:
1) Income elasticity of demand refers to the responsiveness of the quantity demanded for a certain good to a change in income of consumers who purchase this good.The higher the income elasticity of a good, the greater the consumers' response in their purchasing lifestyle.
The formula for Income elasticity of demands given by
The percent change in quantity demanded divided by the percent change in income.
2) Income elasticity of demand, helps us to identify if a particular good represents a necessity or a luxury.
-when the income elasticity for a good is less than 1(ie from 0-1) we say that the good is a normal good. these goods are also called necessity goods and consumers will purchase them irrespective of the changes in their income eg water, electricity
- when the income elasticity of a good is greater than 1 , we say that the good is a luxury good. eg butter
- An inferior good is one with a negative income elasticity which means rising incomes will lead to a drop in demand.
Answer:
Following adjusting journal entry is made on December 31, Year 1.
Dr. Cr.
Salaries and Wages Expense $50,300
Salaries and Wages accrued Payable $50,300
Explanation:
Assuming there is 5 working days in the week and company pay for these only.
Per week Payment = $125,750
per day payment = 125750 / 5 = $25,150
Days Lies in Year 2 = January 3, Year 2 - December 31, Year 1 = 3 days
Days Lies in Year 1 = 5 - 3 = 2 days
Salaries and Wages accrued on December 31, Year 1 = $25,150 x 2
Salaries and Wages accrued on December 31, Year 1 = $50,300
Answer:
31. B) 7,000 & 10,000
32. B) Alternative 2
Explanation:
Volume is 7000 tons :
Alternative 1 costs : $10,000 + (7000 * $10 ) = $80,000
Alternative 2 costs : $20,000 + (7000 * $8 ) = $76,000
Alternative 3 costs : $40,000 + (7000 * $6 ) = $82,000
Alternative 2 is the most cheapest option if the volume is between 7,000 tons to 10,000 tons.
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They concluded that, Given the tremendous uses in time and cash required with D.A.R.E., no doubt proceeded with endeavors should center around different systems and projects that may deliver more significant impacts.
