Income elasticity of demand is a measure of responsiveness of the quantity of goods or services demanded to a change in the income of the people demanding the good. It is calculated as the ratio of the percentage change in the quantity demanded to the percentage change in income.
In this case, percentage change in quantity demanded is 25% and percentange change in income is 20%
Therefore, income elasticity = 25/20
= 1.25
Answer:
A well-respected chairman of the Federal Reserve Bank suddenly resigns
Explanation:
A non-diversifiable or systematic risk, is a risk which is common to a whole market or class of investments and not just limited to just a particular company or investment.
Non-systematic risk is a risk common to just an investment or a company.
If the chairman of the Federal Reserve Bank suddenly resigns, it would affect a wide range of investments in the market and not just a company, which is an example of a non-diversifiable risk.
Answer:
Ayayai Corporation
Statement of Cash Flows
For the Year Ended December 31, 202x
Cash flows from operating activities:
Net income $50,700
Adjustments to reconcile net income:
- Depreciation expense $17,900
- Increase in accounts payable $13,600
- Increase in accounts receivable ($12,000)
- Increase in AFS securities ($17,100)
- <u>Increase in inventory ($7,200) ($4,800)</u>
Net cash flow provided by operating activities $45,900
Notes payable are part of the financing activities of the company, they are not part of the operating activities. So any change in the value of notes payable must be included in the cash flows from financing activities.
D) expenses for a birthday party
