In economics, income elasticity of demand measures the response
of the number demanded for a good or service to a change in the income of the people
demanding the good or service. The formula for calculating this metric is:
Income Elasticity Demand =
Change in Quantity Demanded / Change in Income
Income Elasticity Demand =
55 nights – 33 nights / $600 - $400
Income Elasticity Demand =
0.11 = 11%
Since
<span>Income Elasticity Demand is 0.11 or 11%
(positive number), therefore this means that an increase in income of the
people leads to an increase in the demand of nights dining out.</span>
Answer:
the seller must record the land at the purchase price = $137,000
Explanation:
Fixed assets like land must always be recorded at historical cost. This is specially important regarding land because it doesn't depreciate and its carrying value will always be the purchase cost since it cannot be adjusted if the fair market value changes.
Exchanging things of value is what consideration is in a contract.
Answer:
$130,537.34
Explanation:
We apply the formular for calculating present value of annuity to find quarterly payment in this case. Specifically in this calculation, the financing amount is the Present Value (PV), the number of time equal repayment quarterly will be made is n which forms an annuity, the discounted rate is the charged interest rate by loan issuer (r).
What we need to find is how much will equal quarterly equal repayment will be (C).
The formular for finding present value of annuity as shown below:
PV = C x ( [ 1- (1+i)^(-n) ] / i )
where:
PV = the financing amount = $ 4 million x ( 100% - 12%) = $3.52 million
i = 12% /4 = 3%
n = 4 x 14 = 56 ( as the interest rate is compounded quarterly)
by applying PV, i, n, we have C = $130,537.34
Answer:
Traditional goal setting
Explanation:
Traditional goal setting is the kind of setting which is that strategy where all the goals as well as objectives are set through the leaders of the organization or firm.
This strategy is effective when the objectives through out at every level of the firm are unified in their states goals.
So, in this case, the sales manager is the one who create the sales goals of the firm involving the sales quota for every sales person. Therefore, it is an example of traditional goal setting.
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