A Methods and Measurements Analyst needs to develop a time standard for a certain task. The task involves use of a ruler, square
, and portable electric saw to mark and cut the "notch" in a rafter (a standard carpentry task of home construction). In a preliminary study, he observed one of his workers performing this task five times. The observations were made in an airconditioned, well-lit training facility, at ground level, with all tools and equipment clean and readily available. Observation: 1 2 3 4 5 Task time (seconds): 82 74 80 83 76 a. What is the actual average time for this task? b. What is the normal time for this task if the employee worked at a 20% faster pace than is typical for adequately trained workers? c. What is standard time for this task if allowances sum to 14%? d. If the analyst then thought more carefully about his experiment and decided that the allowances needed to be increased to match the real (outside, not air-conditioned) work environment, and that the proper allowance was not 14% but 20%, what is the revised standard time?
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Answer: The answer is b -an increase in income will cause the demand curve of an inferior good to shift to the left.
Explanation: An inferior good is a good whose demand reduces as income increases. It's demand has an inverse or negative relationship with income. Therefore as the income of the individual increases, the demand for an inferior good reduces. On a graph, the reduction in demand is depicted by an inward shift of the demand curve or a shift of the demand curve to the left to show a reduction in demand. Income is one of the factors that leads to a shift in the demand curve. The income elasticity would be negative
