I think the correct answer is no answer
Answer: a. Net income, current assets, and current liabilities
Explanation:
The Operating Cashflow relates to cash transactions that have to do with the normal operations of the business. In other words, the business that the firm does to make revenue. It therefore includes, production, purchases, admin expenses, net income and the assets required to run the business.
Operating cashflows will therefore be affected by the Net Income as this is the end result of the business transactions the business engaged in. The current assets were needed to sell goods as well as being derived from selling goods and the current liabilities enabled the company to buy goods that they sell amongst other things.
Net income, current assets, and current liabilities are directly related to the operations of the business and so affect the Operating cashflows.
Answer: Option (b) is correct.
Explanation:
Given that,
Income elasticity of a good = 0.8
Percentage increase in consumer income = 4%
Therefore,
Income elasticity of demand =
0.8 =
Percentage change in Quantity demanded = 0.8 × 4
= 3.2%
Hence, Quantity demanded increases by 3.2%.