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Sergeu [11.5K]
3 years ago
10

A firm knows that Seneca's income elasticity of demand for hair ties is 5; for Janelle, it is 0.2. A firm can reason thatla hair

tie is a(n) _ _good for Seneca while it is a(n)_good for Janelle. A. inferior; normal B. complement; substitute C. necessity; luxury D. normal; inferior E. luxury; necessity
Business
1 answer:
Lilit [14]3 years ago
3 0

Answer: E. luxury; necessity

Explanation:

Income elasticity of demand is a measure of how the demand for a good or service change when people's income changes. It the ratio of the percentage change in quantity demanded to the percentage change in income.

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Youve got your budget, credit history and savings in order. Whats the nest step
Ksenya-84 [330]
Try to find a mortgage to buy a house
8 0
3 years ago
Upland Motors recently paid a $1.48 per share annual dividend. Dividends are expected to increase by 2.5 percent annually. What
gregori [183]

Answer:

$13.19

Explanation:

Data given

Annual dividend = $1.48

Increase percentage annually = 2.5%

Discount rate percentage = 14%

The computation of price is shown below:-

Price = Dividend ÷ (Cost of equity - Growth rate)

= ($1.48 × 1.025) ÷ (0.14 - 0.025)

= $1.517 ÷ 0.115

= $13.19

Therefore for computing the price we simply applied the above formula.

3 0
3 years ago
Calculate the net debt of the company based on the information below:
galina1969 [7]

Answer:

$28,300

Explanation:

Calculation to determine the net debt

Using this formula

Net debt=(Short-term interest bearing debt +

Long-term interest bearing debt+Non-interest bearing liabilities)-Cash and equivalents

Let plug in the formula

Net debt=($ 3,000 +$25,000+$ 1,500)-$ 1,200

Net debt=$29,500-$1,200

Net debt=$28,300

Therefore Net debt is $28,300

6 0
3 years ago
Bill currently uses his entire budget to purchase 5 cans of Pepsi and 3 hamburgers per week. The price of Pepsi is $1 per can, t
Tamiku [17]

Answer:

INCREASE the consumption of Pepsi and REDUCE the consumption of Hamburger

Explanation:

Based on the information given we were told that Bill uses his whole budget to purchase the following :

5 cans of Pepsi

3 Hamburgers per week

And the following were the price:

Pepsi costs $1 per can

Hamburger cost $2

Bill marginal utility:

Pepsi 4

Hamburgers 6

Based on the above details this means that Bill could increase his utility by INCREASING Pepsi consumption and REDUCING hamburger consumption reason been that 5 cans of Pepsi costs $1 per can which will gives us income of $5 ($5×1) while 3 Hamburgers per week cost $2 which will give us income of $6 ($3×2) which typically means that the Hamburgers has more income that Pepsi.

Secondly since the marginal utility for Pepsi is 4 while that of Hamburgers is 6 which means that Hamburgers has higher MARGINAL UTILITY than that of Pepsi because the consumption of Hamburgers is higher than the consumption of Pepsi.

Therefore the best thing that Bill could do in order to increase his Pepsi utility is for Bill to increase Pepsi consumption and reduce hamburger consumption.

8 0
3 years ago
The Consumer Price Index is a way that the U.S. government measures ____.
Ludmilka [50]

Answer:

prices of all goods and services bought by US households

Explanation:

3 0
3 years ago
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