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Troyanec [42]
3 years ago
5

If it is known that the income elasticity of demand for the same good is 2.5, estimate the percentage change in demand if consum

er income increases from $100 to $300.
Business
1 answer:
svetlana [45]3 years ago
8 0

Answer:

500%

Explanation:

Given that,

Income elasticity of demand = 2.5

Consumer income increases from $100 to $300,

Therefore, percentage change in consumer income:

= [($300 - $100) ÷ $100] × 100

=  [$200 ÷ $100] × 100

= 200%

Income elasticity of demand = (% change in Quantity demanded) ÷ (% change in income)

2.5 = (% change in Quantity demanded) ÷ 200%

Hence,

% change in Quantity demanded = 2.5 × 200%

                                                       = 500%

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The equity multiplier is obtained by adding one to the debt ratio.

Therefore, the equity multiplier of XYZ inc is given by 1 + 0.62 = 1.62
6 0
3 years ago
Managers are a critical part of any successful organization because​ ________.
Dmitriy789 [7]

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7 0
3 years ago
At the beginning of 2020, Sun Angel Corporation began offering a two-year warranty on its products. The warranty program was exp
Artemon [7]

Answer:

$2,210,126

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5 0
3 years ago
Childress Company produces three products, K1, S5, and G9. Each product uses the same type of direct material. K1 uses 4.2 pound
Eduardwww [97]

Answer and Explanation:

The computation of the contribution margin per pound for each of the three products is shown below:

As we know that

Selling price per pound - Variable cost per pound = Contribution margin

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= $155.8 - $91

= $64.8

For Product S5

= $108.92 - $90

= $18.92

For Product G9

=$205.55 - $136

= $69.55

Now the contribution margin per pound is  

For Product K1 = Contribution margin ÷ Pound  

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For Product S5 =  Contribution margin ÷ Pound  

                        = 18.92 ÷ 4.1  

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For Product G9 = Contribution margin ÷ Pound

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                          = 13.22 per pound

6 0
2 years ago
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