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poizon [28]
2 years ago
13

For a particular good, a 12 percent increase in price causes a 3 percent decrease in quantity demanded. Which of the following s

tatements is most likely applicable to this good? a.There are many substitutes for this good. b.The good is a necessity. c.The market for the good is narrowly defined. d.The relevant time horizon is long.
Business
1 answer:
Charra [1.4K]2 years ago
3 0

Answer:

b.The good is a necessity

Explanation:

The price elasticity of demand = percentage change in quantity demanded/ percentage change in price

3% / 12% = 0.25

When the coefficient of elasticity is less than one, demand is inelastic.

Inelastic demand means that when price increases, there is little or no change in quantity demanded.

Necessity goods are goods that are very important to consumers and thus they tend to have an inelastic demand. For example, medications.

Substitute goods are goods that can be used in place of another good because of their similarity. E.g. butter and margarine

Goods with many substitutes have an elastic demand. If price of a good increases, consumers can easily shift consumption to substitute goods.

Narrowly defined goods have an elastic demand because it is easier to find subsituites for such goods.

Demand is more elastic in the long run because consumers have more time to search for substitutes.

I hope my answer helps you

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Burglar Bob breaks into Vince Victim’s house. Bob steals a flat-screen television and laptop and does a significant amount of da
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Answer:

The answers are:

  1. Vince Victim´s lawyer
  2. Burglar Bob will have to pay a monetary compensation.
  3. The District Attorney
  4. Burglar Bob will have to spend some time in jail.

Explanation:

Vince Victim´s lawyer is responsible for bringing the civil case against Burglar Bob. If Vince wins, then Burglar Bob will probably have to pay a certain amount of money to Vince Victim in compensation for the damages he caused.

The District Attorney´s office is responsible for bringing the criminal case against Burglar Bob. If the jury finds Burglar Bob guilty then he will probably spend some time in jail.  

5 0
3 years ago
When a seller gives permission to a broker to submit the property to the MLS, the seller is authorizing the broker to make a bla
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Explanation:

MLS stands for Multiple Listing or Multiple Listing System. MLS is such a service that is built to assist various brokers in reviewing the lists of various properties in different areas. This list help others purchase their own property to their taste as well as sell their properties.

Under new regulations, when a seller permits a broker to send property to MLS, the broker can make a unilateral blanket bid to agree to accept or refuse all members of that MLS sub-agency.

4 0
3 years ago
.Grannis Corporation purchased land in order to construct a new factory . Expenditures incurred by the company were as follows:
katovenus [111]

Answer:

The amount recorded in the Land account is $61,200    

Explanation:

The cost of acquisition/purchase of a landed asset includes all the normal, reasonable and necessary costs incurred in obtaining the land and getting it ready for use. These cost includes the price of the land, the legal fees, title fees, taxes, excavation costs etc. On the other hand, cost of improvements on the land are recorded on improvement on asset accounts, where depreciation is put in consideration when computing cost. This is separate from acquisition cost because, there is no depreciation on a land. The cost is calculated as follows:

purchase price = $ 45,000

broker's fees    = $   8,000

accrued taxes  = $    2,000

demolition        = $    2,700

grading             = $    1,500

excavation       =  $    2,000

Total                 =  $ 61,200

6 0
3 years ago
During a pandemic, an economy goes into a recession due to a decrease in aggregate demand. Assume the government creates a progr
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The spending that would occur during the third round of spending if the marginal propensity to consume (MPC) was 0.6 will be $420 billion.

  • Increase in expenditure = $700 billion.
  • Marginal propensity to consume = 0.6

The amount of spending based on the information given will be:

= 0.6 × $700 billion

= $420 billion.

Therefore, the correct option is $420 billion.

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7 0
2 years ago
Describe the current economy and labor market, including the types of goods and services produced, the types of skills workers n
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