Answer:
1) Luxury
2) Necessity
Explanation:
1)The hair tie is a luxury good for Mike because Mike has a income elasticity of 5 which means that if mike's income decreases 1% his demand for the good decreases 5%, which shows that his demand for this good is highly sensitive to his income which is a characteristic of luxury goods, as you only buy luxury goods when your income increases.
2) It is a necessity for Sally because her income elasticity to the good is 0.2 which means every 1% change in income changes her demand by just 0.2%, which shows demand is not very sensitive to income and the quantity she buys them in dont rely much on her income, which is a sign of a necessity, you buy a certain amount of necessities regardless of your income.
Meritocracy is a system based on
a dominant ideology involving the widely shared belief that all people have an
equal chance of succeeding economically or a political philosophy stating that
power should be vested in individuals based on their hard work and skills.
Answer:
10.02%
Explanation:
The computation of the WACC is shown below. The formula of WACC is shown below:
= (Weightage of debt × cost of debt) + (Weightage of preferred stock) × (cost of preferred stock) + (Weightage of common stock) × (cost of common stock)
= 27% × 7.6% × (1 - 0.40) + 9% × 5.9% + 64% × 12.9%
= 2.052% × (1 - 0.40) + 0.531% + 8.256%
= 10.02%
Answer:
The correct answer is option c.
Explanation:
A decrease in the supply will cause the supply curve to shift to the left. This leftward shift in the supply curve will further cause the demand and supply curve to intersect at a higher point.
As a result, there will be an increase in the equilibrium price and a decrease in the equilibrium quantity.
This also represented in the figure given below.
