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belka [17]
3 years ago
14

Income elasticity of demand is

Business
2 answers:
topjm [15]3 years ago
5 0

Answer: Answer is A.

Explanation:

coldgirl [10]3 years ago
3 0

Answer: Option (a) is correct.

Explanation:

Income elasticity of demand measures the responsiveness of quantity demanded with change in the income level of an individual.

Income\ elasticity\ of\ demand=\frac{percentage\ in\ quantity\ demanded}{percentage\ change\ in\ income}

Income of an individual has a positive relationship with the demand for normal goods and has a negative relationship with the demand for inferior goods.

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Hilary is a retired teacher who lives in Miami and does some consulting work for extra cash. At a wage of $50 per hour, she is w
Basile [38]

Answer:

Hilary is a retired teacher who lives in Miami and does some consulting work for extra cash. At a wage of $50 per hour, she is willing to work 10 hours per week. At $65 per hour, she is willing to work 19 hours per week.

Using the midpoint method, the elasticity of Hilary’s labor supply between the wages of $50 and $65 per hour is approximately 2.37 , which means that Hilary’s supply of labor over this wage range is elastic.

Explanation:

Midpoint elasticity = (Change in labor supplied / Average labor supplied) / (Change in wage rate / Average wage rate)

= [(19 - 10) / (19 + 10) / 2] / [$(65 - 50) / $(65 + 50) / 2]

= [9 / (29 / 2)] / [15 / (115 / 2)]

= (9 / 14.5) / (15 / 57.5)

= 0.62/0.26

Midpoint elasticity = 2.37

Once elasticity is greater than 1, supply of labor is Elastic.

5 0
3 years ago
You are the manager of a pizzeria that produces at a marginal cost of $6 per pizza. The pizzeria is a local monopoly near campus
Sergeeva-Olga [200]

Answer:

since the price elasticity of demand for students is -4, the the price charged to them should be:

price = [-4 / (-4 + 1)] x $6 = (-4 / -3) x $6 = $8

since the price elasticity of demand for faculty is -2, the the price charged to them should be:

price = [-2 / (-2 + 1)] x $6 = (-2 / -1) x $6 = $12

4 0
3 years ago
Assume that investors can borrow and lend at risk-free rate of 5%. The optimal tangent portfolio on the efficient frontier has a
gizmo_the_mogwai [7]

Answer:

B. Portfolio B with E(R)=13% and STD=18%

Explanation:

The computation is shown below;

Reward to risk ratio = (15% - 5%) ÷ 20% = 0.5

The porfolio should be in line i.e.

= 0.05 + 0.5 × standard deviation

For portfolio A

= 0.05 + 0.5 × 25

= 17.5%

For portfolio C

= 0.05 + 0.5 × 1

= 5.5%

Portfolio B, the std is 18%

So,

= 0.05 + 0.5 × 18%

= 14%

5 0
3 years ago
A _______________ is a supply chain whose members act like a unified system.
Anvisha [2.4K]

Answer:

e. Vertical marketing system.

7 0
3 years ago
Decisión grids are valuable tools because they help us
jenyasd209 [6]

Answer:

There are any number of valid responses – <em>see below</em>.

Explanation:

Decision grids are valuable tools because they help us:

  • Evaluate and prioritize a list of options
  • Make the best choices at the least cost
  • Make wise decisions in a range of contexts
  • Consider the cost and benefits of a decision
  • Reduce subjectivity to help make sound conclusions
  • See what we gain and lose by choosing between alternatives
8 0
3 years ago
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