The income elasticity in this case is 1.
<u>Explanation:</u>
In Economics, the income elasticity of demand gauges the responsiveness of the amount requested for a decent or administration to an adjustment in income. It is determined as the proportion of the rate change in amount requested to the rate change in pay.
Income Elasticity of Demand (YED) is characterized as the responsiveness of interest when a purchaser's salary changes. It is characterized as the proportion of the adjustment in amount requested over the adjustment in salary.
The BEST description of the economic system of the United States is <u>D. free-market capitalism.</u>
<h3>What is free-market capitalism?</h3>
Free-market capitalism is known for the following features:
- Private individuals control the factors of production.
- It is a purely capitalist economic system.
- The laws of supply and demand regulate production, labor, and the marketplace.
- An unregulated system of economic exchange reigns.
- Non-existence of or minimal presence of centralized economic interventions.
The best description of the economy of the United States is not:
- Marxism
- Command
- Socialism
- Closed economic system.
But the BEST description of the economic system of the United States is <u>D. free-market capitalism</u>.
Learn more about free-market capitalism at brainly.com/question/3369578 and brainly.com/question/600577
Im not sure sorry...... try searching it up
Answer:
A. $950
Explanation:
Proper documentations of payments, purchases and income in any company is very necessary for growth.
From the question, the following transaction occured:
- March 3 => a desk was purchased for $450
- March 22 => another desk was purchased for $500
- March 24 => $400 was paid on account.
To know the amount that ABC should report for desks, the two transaction for desk should be summed and the result will be the amount that should be recorded.
Therefore,
$450 + $500 = $950.
The applicable formula is;
A = P(1-r)^n
Where;
A = Final purchasing power
P = Current purchasing power
r = inflation
n = Number of years when P changes to A
Confirming the first claim:
A = 1/2P (to be confirmed)
P = $3
r = 7% = 0.07
n = 10.25 years
Using the formula;
A = 3(1-0.07)^10.25 = 3(0.475) ≈ 3(0.5) = $1.5
And therefore, A = 1/2P after 10.25 years.
Now, give;
P = $9
A = 1/4P = $9/4 = $2.25
r = 6.5% = 0.065
n = ? (nearest year).
Substituting;
2.25 = 9(1-0.065)^n
2.25/9 = (1-0.065)^n
0.25 = (1-0.065)^n
ln (0.25)= n ln(1-0.065)
-1.3863 = -0.0672n
n = (-1.3863)/(-0.0672) = 20.63 years
To nearest year;
n = 21 years
Therefore, it would take approximately 21 years fro purchasing power to reduce by 4. That is, from $9 to $2.25.