1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
belka [17]
3 years ago
9

By observing an individual’s behavior in the situations outlined below, determine therelevant income elasticities of demand for

each good (i.e., whether the good is normal orinferior). If you cannot determine the income elasticity, what additional informationmight you need?
a. Bill spends all his income on books and coffee. He finds $20 while rummagingthrough a used paperback bin at the bookstore. He immediately buys a newhardcover book of poetry.
b. Bill loses $10 he was going to use to buy a double espresso. He decides to sell hisnew book at a discount to his friend and use the money to buy coffee.
c. Being bohemian becomes the latest teen fad. As a result, coffee and book pricesrise by 25 percent. Bill lowers his consumption of both goods by the same percentage.
d. Bill drops out of art school and gets an M.B.A. instead. He stops reading books anddrinking coffee. Now he reads The Wall Street Journal and drinks bottled mineralwater
Business
1 answer:
vfiekz [6]3 years ago
5 0

Answer:

Normal goods are those goods which see their demand rise when income rises and fall when income falls. Inferior goods on the other hand will see their demand fall when income rises and vice versa.

a. Book = Normal Good

Coffee = Neutral good

The demand for Books increased when Bill had more money which makes it a normal good.

The demand for coffee did not change when new income came thereby making it a neutral good.

b. Book = Normal Good

Coffee = Inferior good

The demand for Books decreased when Bill had less money which makes it a normal good.

The demand for coffee increased when Bill's income reduced thereby making it an inferior good.

c. Book = Normal Good = Coffee

Both coffee and books are normal goods because Bill is buying less of them when their prices increase because it means that Bill has less income to spend on them.

d. More information needed.

We are unable to tell which goods are normal or inferior as we are not given information on the relative changes in demand as a result of income changing.

You might be interested in
Molen Inc. has an outstanding issue of common stock with an annual dividend of $8.50 per share. The stock's annual dividend is e
Pavel [41]

Answer:

price stock sell today is $141.67

Explanation:

given data

annual dividend = $8.50

stock = 6.0%   = 0.06

to find out

what price stock sell today

solution

we know that here annual dividend  and stock rate

so will find stock sell today by given formula that is

stock sell today = annual dividend  / stock    .............1

put here all these value

stock sell today = annual dividend  / stock

stock sell today = 8.50  / 0.06

stock sell today = 141.67

so price stock sell today is $141.67

4 0
4 years ago
The difference between your sales and your cost of goods sold is known as your what
Anettt [7]

Answer:

profit.

Explanation: its just right

8 0
3 years ago
Which of the following costs is an example of a Selling & Administrative (S&A) cost rather than a product cost? Group of
irakobra [83]

Answer:

The answer is B.

Explanation:

Option B. Wages of sales person are the example of a Selling and Administrative cost. Other examples are rents, distribution cost etc.

Option C is wrong. Wages of production machine operators is a direct wage. It will form part of cost of sales.

Option D is wrong. Insurance on factory equipment cannot be attributable to selling cost.

4 0
3 years ago
In Japanese corporate culture, which action is most likely to constitute a typical significant impediment to averting and respon
Ilia_Sergeevich [38]

Action which is most likely to constitute a typical significant impediment to averting and responding to a crisis is (C) employees who are lower in the hierarchy find it hard to question their superiors.

<h3>What is hierarchy?</h3>
  • A hierarchy is a type of organizational system in which elements are prioritized in order of importance.
  • The majority of governments, organizations, and organized religions are hierarchical in nature.
  • So, employees who are lower in the hierarchy find it hard to question their superiors.
  • The corporate ladder is an example of hierarchy.
  • Lower-level employees find it difficult to question their supervisors.
<h3>Who are superiors?</h3>
  • In any type of hierarchy or tree structure, a superior is an individual or position higher in the hierarchy than another, and hence closer to the peak.
  • Superiors in business are supervisors, while superiors in the military are those higher in the line of command.

Since lower-level employees find it difficult to question their supervisors.

Therefore, the correct option is (C) employees who are lower in the hierarchy find it hard to question their superiors.

Know more about Japanese corporate culture here:

brainly.com/question/14243361

#SPJ4

Complete question:

In Japanese corporate culture, which action is most likely to constitute a typical significant impediment to averting and responding to a crisis?

a) Decisions are generally taken by lower-level employees who directly deal with the problem.

b) Negotiations are avoided at any cost.

c) Employees who are lower in the hierarchy find it hard to question their superiors.

d) The process of decision-making is extremely complex and time-consuming.

e) Employees like to work on their own rather than in a group.

6 0
2 years ago
Suppose there are only three people in the economy: jane, harry, and bob. the individual demand for corn for each of these consu
OleMash [197]

Answer:

$25

Explanation:

Please check the attached image for a diagram of exhibit 3-1

The total quantity demanded can be found by adding the sum of the quantity demanded at $5.

Jane doesn't demand at $5, so her quantity demanded is 0

For Henry it is 8

For Bob, it is 17

Total quantity demanded ia 25

I hope my answer helps you

8 0
4 years ago
Other questions:
  • When current real output exceeds potential real output, the federal reserve will _____ interest rates in an effort to fight ____
    6·1 answer
  • A disaster management tool that can provide an organization with additional financial resources at the time an unforeseen event
    5·1 answer
  • At the beginning of last year (2019), Richter Condos installed a mechanized elevator for its tenants. The owner of the company,
    9·1 answer
  • ExAlt Technologies forecasts a sales increase in several product lines, so management is planning how to expand production capac
    11·1 answer
  • Roger Corporation reports accumulated other comprehensive income of $10 million at 12/31/16. For the year ended 12/31/17, the co
    6·1 answer
  • Revolve Company is a price-taker and uses a target-pricing approach« on: September 24, 2015, 03:43:22 PM »Refer to the following
    9·1 answer
  • Weight-Gone offers a guaranteed weight loss of 8 pounds in one week without dieting or exercise. Thousands of customers purchase
    13·1 answer
  • U Co. had cash purchases and payments on account during the current year totaling $455,000. U's beginning and ending accounts pa
    13·1 answer
  • Compare and contrast microeconomics and macroeconomics. How do the two approaches interrelate? Use a specific example to explain
    11·1 answer
  • In 2021, Carson is claimed as a dependent on his parents' tax return. His parents report taxable income of $200,000 (married fil
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!