Monitor business practices that might lead to monopolies
Answer and Explanation:
Given that
Consumption function C = 200 + 0.9Y
Investment I = 300
Aggregate expenditure AE = C + I
Equilibrium AE = Y
Based on the above information
a. The level of equibrium income is
Y = AE = C + I
Y = 200 + 0.9Y + 300
0.1Y = 500
Y = 5000
b. The value of the investment multiplier is
= 1 ÷ (1 - MPC)
= 1 ÷ (1 - 0.9)
= 10
c. The change in the level of equilibrium income if investment increases by 10 is
Y = 200 + 0.9Y + 310
0.1Y = 510
Y = 5100
Change is
= 5,100 - 5,000
= 100
Answer:
change in demand; shift of the demand curve.
Explanation:
We know that income elasticity of demand derives by considering the percentage change in quantity demanded and percentage change in income
In mathematically,
Income elasticity of demand = (percentage change in quantity demanded) ÷ (percentage change in income)
By considering the above information, the change in income preferences is due to change in demand plus it also shift of the demand curve
Answer:
$792,960
Explanation:
Data provided
Number of pods = 23,600
Direct labor hours = 3
Direct Labor Rate per hour = $11.20
The computation of Budgeted direct labor costs is shown below:-
Budgeted Direct labor Cost = Number of pods × Direct Labor Hours required per pod × Direct Labor Rate per hour
Budgeted Direct labor Cost = 23,600 × 3 × $11.20
= $792,960
Answer:
PeD = 0
Explanation:
Price elasticity of demand is the responsiveness of quantity demanded when there is a change in price. An elastic demand means that when price changes the quantity demanded changes by more than the proportionate change in price. measured as
Ped = % change in Quantity demanded / % Change in Price
An elasticity value of between 0 and 1 is regarded as inelastic demand as quantity changes by less than the proportionate change in price.
Value of 1 is considered unitary elastic as an equal proportionate change occurs.
Greater than 1 is elastic demand where the change is more than proportionate.
When there is absolutely no change the demand is perfectly inelastic and the demand curve is vertical. This yields a value of 0 as there is no observed change in quantity demanded given a change in price.
Hope that helps.
