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slava [35]
3 years ago
8

The income elasticity of demand for housing property is exactly 1.40. Due to a recession, you expect incomes to drop by 5% next

year. How will consumers adjust their purchase for housing property?​
Business
1 answer:
a_sh-v [17]3 years ago
5 0

Answer:

Buy 7% less houses

Explanation:

Income elasticity of demand measures the responsiveness of quantity demanded to changes in income

Income elasticity of demand = percentage change in quantity demanded/ percentage change in income

1.40 = percentage change in quantity demanded/ 5%

Percentage change in quantity demanded = 1.4 × 5% = 7%

Because the coefficient of elasticity is greater than one, it means demand is income elastic. This means quantity demanded is responsive to changes in income. A fall in income would reduce the quantity demanded.

I hope my answer helps you

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Scenario C. Parker Brothers is a high-end furniture manufacturer located in the Midwest, Mr. Herbert "Bud" Parker started the fi
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The correct answer is A) organization culture.

The other options of the question were B) the company's macroenvironment. C) the organization's competitive environment. D) collective competitive intelligence. E) organizational structure.

The stories about the "Parker Legends" and the organization's most innovative designs are all clues to understanding the organization's culture.

This is the importance of the culture of a company. The series of values, principles, mission, and vision that characterizes and makes the company unique. Every single employee in the company shares these values and can be transmitted through time to new workers. "Parker Legends" is a tradition that is respected and is part of the organization's DNA.

5 0
3 years ago
Income rises from $3,500 to $4,000 a month and the quantity demanded of good X falls from 7 to 5 units a month. Income elasticit
finlep [7]

Answer:

E) -2.50 ; inferior

Explanation:

Before you earned $3,500 per month, you consumed 7 units per month. That means that you consumed 1 unit every $500 earned.

When your income increased to $4,000, you only consumed 5 units per month. That means that your consumption decreased to 1 unit for every $800.

The income elasticity of demand using the midpoint method is calculated by using the following formula:

income elasticity = {change in quantity demanded / [(old quantity + new quantity) / 2]} /  {change in income / [(old income + new income) / 2]}  

= {-2 / [(7 + 5) / 2]} /  {500 / [(3,500 + 4,000) / 2]} = (-2 / 6) / (500 / 3,750) = -0.333 / 0.133 = -2.5

Since the income elasticity of demand is negative, the good X is an inferior good.

7 0
3 years ago
Key performance indicators are the metrics a company uses to evaluate progress toward critical success factors. Which of the bel
Lemur [1.5K]

Answer:

Answer is C

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Key performance indicators are sets of quantifiable measures used to evaluate how effectively an organization is achieving its key organizational objectives.

The keyword here is "quantifiable".

Therefore, recording the percentage of help desk calls answered in the first minute helps to know just how effective the company is probably helping its customers have great experience or easy usage of its products or services by the number of customers calls answered to, or how effective the customer service is.

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3 years ago
Question 5: Definitions and concepts
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2 years ago
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Depreciation of equipment is an example of a(n) relevant cost. opportunity cost. sunk cost. variable cost. None of these.
77julia77 [94]

There are different kinds of cost incurred in business. Depreciation of equipment is an example of sunk cost.

  • Sunk cost is a financial term for a cost that has been incurred and one cannot recover again. This type of costs are taken as bygone and are not taken into consideration when making decisions.

They are money that has been spent and one cannot get back again. Example is Depreciation, amortization, and impairments.

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2 years ago
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