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tiny-mole [99]
3 years ago
9

Suppose you manage a convenience mart and are in charge of ordering products but do not set the price. The home office provides

the prices. In your area, the income elasticity of demand for peanut butter is -.05. Due to local factory closings, you expect local incomes to decrease by 20% on average in the next month. As a result, you should stock:
a) 20% more peanut butter on the shelves
b) 5% more peanut butter on the shelves
c) 10% more peanut butter on the shelves
d) 10% less peanut butter on the shelves
Business
1 answer:
lakkis [162]3 years ago
5 0

Answer:

c) 10% more peanut butter on the shelves

Explanation:

Since peanut butter has a negative income elasticity of demand (-0.5) with a decrease in income, there should be an increase in the demand. This is usually true for cheaper goods or goods with low added value. The change in demand (D) is represented as follows:

D=20\% * 0 .5\\D=10\%

As a result, you should stock 10% more peanut butter on the shelves.

The answer is c).

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Leto [7]

Answer:

Option (D) is correct.

Explanation:

Given that,

During a​ year,

Firm's gross investment = $2,000

Firm's net investment = $1,600

Firm's depreciation = ?

Therefore,

Gross investment = Net investment + Depreciation

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$2,000 - $1,600 = Depreciation

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6 0
3 years ago
ring its first five years of operations, Della Manufacturing reports net income and pays dividends as follows. Year Net Income D
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Explanation:

The retained earnings will be calculated as:

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Year 1:

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Year 2:

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= 1300

Year 3:

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Year 4:

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Year 5:

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3 0
3 years ago
Benefits are offered by employers to attract good employees
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4 0
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Sally, Greg, Juan, and Amar are working on a project for a customer that is aimed at cutting the client's electrical costs. The
creativ13 [48]

Answer: Option A

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3 0
3 years ago
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Giving the following information:

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3 0
2 years ago
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