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4 years ago

Income elasticity of demand measures:

Business

2 answers:

arlik [135]4 years ago

5 0

Answer:

1) The correct answer is letter "A": how responsive quantity demanded is to changes in income.

2) The correct answer is letter "A": a luxury good.

Explanation:

1) Income elasticity of demand refers to the fluctuations of the quantity demanded in front of changes in income. It is calculated by dividing the percentage change of quantity demanded by the percentage change in income. If the result is greater than (1) or equal to (0), the demand is elastic. If the result is lower than (1) the demand is inelastic.

2) In case the demand elasticity of butter is 0.11, it implies it is elastic. It means in front of small changes in income, would change exponentially the quantity demanded for butter. This characteristic is typical in luxury items since when people's income increase the quantity demanded increase and when people's income decrease so does quantity demanded.

natita [175]4 years ago

3 0

Answer:1) how responsive quantity demanded is to changes in income--A 2) income elasticity of demand for butter is 0.11. That means butter is a luxury good---A

Explanation:

1) Income elasticity of demand refers to the responsiveness of the quantity demanded for a certain good to a change in income of consumers who purchase this good.The higher the income elasticity of a good, the greater the consumers' response in their purchasing lifestyle.

The formula for Income elasticity of demands given by

The percent change in quantity demanded divided by the percent change in income.

2) Income elasticity of demand, helps us to identify if a particular good represents a necessity or a luxury.

-when the income elasticity for a good is less than 1(ie from 0-1) we say that the good is a normal good. these goods are also called necessity goods and consumers will purchase them irrespective of the changes in their income eg water, electricity

- when the income elasticity of a good is greater than 1 , we say that the good is a luxury good. eg butter

- An inferior good is one with a negative income elasticity which means rising incomes will lead to a drop in demand.

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Who pays taxes in a corperation?

atroni [7]

Answer:

Companies, both private and public which are registered in India under the Companies Act 1956, are liable to pay corporate tax. For the assessment year 2014-15, domestic companies are taxed at the rate of 30%.

Explanation:

<h3>I hope this helps!</h3>

7 0

2 years ago

Tiger Trade has the following cash transactions for the period.

Valentin [98]

Answer:

1. Ending balance of cash is $31400

Explanation:

1.

Balance of cash at the beginning of the period is $4,300

+Cash received from sale of products to customers $ 36,500

+Cash received from the bank for long-term loan 41,500

-Cash paid to purchase factory equipment (46,500 )

-Cash paid to merchandise suppliers (11,300 )

+Cash received from the sale of an unused warehouse 12,300

-Cash paid to workers (23,300 )

-Cash paid for advertisement (3,300 )

+Cash received for sale of services to customers 26,500

-Cash paid for dividends to stockholders (5,300 )

Balance of cash at the beginning of the period is $31,400

2.

Cash Flow Statement

Cash flow from Operating Activities

Cash received from sale of products to customers $ 36,500

Cash received for sale of services to customers 26,500

Cash paid to merchandise suppliers (11,300 )

Cash paid to workers (23,300 )

Cash paid for advertisement (3,300 )

Total Cash Inflow / outflow from Operating Activity 25,100

Cash flow from Investing Activities

Cash paid to purchase factory equipment (46,500 )

Cash received from the sale of an unused warehouse 12,300

Cash paid for dividends to stockholders (5,300 )

Total Cash Inflow / outflow from Investing Activity (39,500 )

Cash flow from Financing Activities

Cash received from the bank for long-term loan 41,500

Total Cash Inflow / outflow from Financing Activity 41,500

Net cash Inflow / Outflow 27,100

Balance of cash at the beginning of the period is 4,300

Balance of cash at the beginning of the period is 31,400

8 0

3 years ago

The price of a gallon of gasoline was $0.35 in 1972 when the CPI equaled 0.418. The price of a gallon of gasoline was $2.25 in 2

lana66690 [7]

Answer:

increased

Explanation:

Data provided in the question:

Price of a gallon of gasoline in 1972 = $0.35

CPI in 1972 = 0.418

Price of a gallon of gasoline in 2005 = $2.25

CPI in 2005 = 1.68

Now,

Real cost in 1972 = [ Nominal cost in 1972 ] ÷ [ CPI in 1972 ]

= $0.35 ÷ 0.418

= $0.837

Real cost in 2005 = [ Nominal cost in 2005 ] ÷ [ CPI in 2005 ]

= $2.25 ÷ 1.68

= $1.34

Hence,

The price of gallon of gasoline increased between 1972 and 2005

3 0

3 years ago

Scarcity in economics means that: A) we often do not have sufficient resources to achieve our objectives. B) the wants of people

DanielleElmas [232]

Answer:

A) we often do not have sufficient resources to achieve our objectives

Explanation:

Scarcity is an economic problem that comes with scarce resources and unlimited wants. In this situation people have to decide on how to allocate resources better so as to satisfy their need, which involves opportunity cost.

Scarcity occurs when resources needs to satisfy ends are limited in supply. It is a foundational problem in economics.

5 0

3 years ago

Read 2 more answers

Which of the following is true of Peter Senge’s contributions to management thought and practices? A. He has made several signif

puteri [66]

Answer:

A. He has made several significant contributions to the areas of organizational learning and change.

Explanation:

Option B: Peter Drucker was the first person to discuss MBO, not Peter Senge. So, this option is incorrect.

Option C: It is the function of management. Therefore, Peter Senge might contribute to this one, but there is no evidence. So, it is wrong.

Option D: Peter Senge advocated the scientific methods of management, but not for the determination of efficient production.

Option E: He does not contend with the bureaucratic structure. Therefore, it is wrong, either.

Option A: It is the answer because he has made several contributions to the areas of organizational learning through the establishment of the society of organizational learning.

8 0

3 years ago