Question 7 of 10

There are a number goods that over time, for a variety of reasons, transition from being a normal good to an inferior good or fr

boyakko [2]

Answer:

d. the camry becomes an inferior good because the good is now perceived as lower in quality than a lexus

Explanation:

There are a number goods that over time, for a variety of reasons, transition from being a normal good to an inferior good or from being an inferior good to a normal good. One such example of a good is the Toyota Camry. In the 1980s, more income for a household usually resulted in more Camrys being purchased. However, today more Toyota Camrys are purchased by households that have experienced a reduction in income.

How could this happen?

This could only have happened because of a change in perception in households over time.

It is stated in the Scenario that ''today more Toyota Camrys are purchased by households that have experienced a reduction in income.''

That means Toyota Camry has become an inferior good that is purchased more when income falls.

Hence, the only reason the scenario would have occurred is that the camry becomes an inferior good because the good is now perceived as lower in quality than a lexus

7 0

2 years ago

In a perfectly competitive market, the long-run market supply curve tends to be horizontal or nearly so. What is another way to

Degger [83]

Answer: There has been a drop in demand.

Explanation:

The strength and sustainability of a business is the demand in the market, it would be painful and a loss making so many productions and there is little or nothing for demand at the moment. So the target is way to make sure there is a demand on the long run which will match up the production.

3 0

3 years ago

To finance some manufacturing tools it needs for the next 3 years, waldrop corporation is considering a leasing arrangement. the

KATRIN_1 [288]

"The answer is $106".

After tax cost of debt 6%
Dep per year 1600
Tax sav from dep 640
cost of owning 0 1
interest -480
tax saving 192
maintence -240
maintenece saving 96
Depn tax saving 640
loan repay
net cash cost 208
PV cost of owning (6%) -3474
cost of leasing
lease payment -2100
Tax savings from lease 840
net cash cost -1260
PV cost lease 6% -3368
PV cost own - Pv cost lease 106

3 0

3 years ago

John has $ 1.35 $1.35 in nickels and dimes in his pocket. He has six more nickels than he does dimes. How many of each does he h

Eduardwww [97]

Answer:

John has 7 dimes and 13 nickels

Explanation:

let N = nickels

let D = dimes

5N + 10D = 135

N = D + 6

5(D + 6) +10D = 135

5D + 30 + 10D = 135

15D = 135 - 30 = 105

D = 105 / 15 = 7

N = D + 6 = 7 + 6 = 13

7 0

3 years ago

On March 2, Kingbird, Inc. sold $954,000 of merchandise on account to Ayayai Company, terms 4/10, n/30. The cost of the merchand

shtirl [24]

Answer:

Following Journal Entries are recorded for Kingbird, Inc

Explanation:

March 02

Debit: Account Receivable = $954,000

Credit: Sale = $954,000

(Credit Sale is Recorded)

Debit: Cost of Good Sold = $590,000

Credit: Inventory = $590,000

(To Record Cost of merchandise Sold)

6 0

3 years ago