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nalin [4]
3 years ago
14

A firm knows that Mike’s income elasticity of demand for hair ties is 5 while for Sally it is 0.2. A firm can reason that a hair

tie is a(n) ________ good for Mike while it is a(n) ________ good for Sally.
Business
1 answer:
bonufazy [111]3 years ago
6 0

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.

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Which of the following charts would be best to draw out the movement of people or material?
masya89 [10]

Answer:

c) Flow diagram.

Explanation:

Flow diagram also known as a flowchart can be defined as a visual representation or an activity diagram which is typically used to illustrate or demonstrate the simple sequence of actions or movements within a complex process and workflow. A Flow diagram would be best to draw out the movement of people or material.

Generally, a flowchart or flow diagram makes use of symbols such as rectangle, oval, diamond, arrow to represent the steps, flow or sequence of a complex system.

3 0
4 years ago
The price of crude oil increases 50%. This will cause a change in ( supply/ quality supplied )
Paladinen [302]

Answer:

See below

Explanation:

A price increase motivates suppliers to avail more products for sale in the markets. High prices tend to have a high margin hence more profits. Like other businesses, oil producers are profit-motivated; they will supply more quantities if there is a high probability of making more profits.

The law of supply explains the correlation between supply and price. As prices increase, supply also tends to increase.

5 0
3 years ago
Five-year-old lilah is beginning to show signs of being able to plan ahead in a somewhat rational manner. at her age, this devel
RideAnS [48]
<span>This would be her frontal lobe. This part of the brain is responsible for higher-order thinking and rational decision-making. Neural network growth is expansive at early ages, with children being able to make decisions for themselves that show signs of being rational and thought-out.</span>
4 0
4 years ago
Armstrong industries has a contribution margin of $300,000 and a contribution margin ratio of 30%. how much are total variable c
ozzi
<span> $300,000 / 30% = 1,000,000 - 300,000 = $700,000 </span>
5 0
3 years ago
Starling Co. manufactures one product with a selling price of $18 and variable cost of $12. Starling’s total annual fixed costs
nikitadnepr [17]

The number of units that Starling Co. sold was 11200

<u>Explanation:</u>

Given -

Operating income = $28,800

Fixed cost = $38,400

Selling price of one unit = $12

Variable cost = $12

Number of units sold, n = ?

Contribution  margin per unit = $18 - $12

                                                 = $6

n = \frac{operating income + fixed cost}{contribution margin per unit}

n = \frac{28800 + 38400}{6} \\\\n = \frac{67200}{6} \\\\n = 11200

Therefore, number of units that Starling Co. sold was 11200

7 0
3 years ago
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