All categories

4 years ago

What is income elasticity onlyy

1 answer:

8 0

Income elasticity of demand measures the receptiveness of the quantity demanded for a good or service to a change in income.

It's calculated as the ratio of the percentage change in quantity demanded to the percentage change in income.

Explanation:

Hope this helps!!

You might be interested in

In the monetarist view, the long-run Phillips curve is____________.

ollegr [7]

Answer:

The correct answer is option E.

Explanation:

The Philips curve shows the inverse relationship between inflation and unemployment. The Philips curve, in the short run, is downward sloping L shaped indicating this inverse relationship.

But according to economists, in the long run, there is no trade-off between inflation rate and unemployment. The inflation and unemployment are related in the short run, they are not related in the long run.

The long-run Phillips curve is a vertical line at the point of the natural rate of unemployment.

6 0

3 years ago

MC Qu. 6 Physical goods can be differentiated ... Physical goods can be differentiated from services in the operations managemen

swat32

Answer:

The answer is: Longer lead times and they can be inventoried.

Explanation:

Physical goods or products usually have longer lead times than services (although not necessarily) but the main difference between them is that they can be inventoried.

For example, a company that produces chairs can produce chairs during the week and then store them in a warehouse. But if a hotel only rents 30 of its 50 available rooms today, it cannot rent 80 rooms tomorrow, only 50. A service by definition cannot be inventoried, or stored for later use.

4 0

4 years ago

Milton is the sales manager of a cosmetics company that offers a wide range of face creams, lipsticks, and eye makeup. some of t

posledela

To carry out this process of division of the <span>company's vast customer base into distinct segments so that the company's sales people can specialize in one line of business only</span>, it is necessary for Milton to possess sound market knowledge. Sound market knowledge involves knowledge, data and information about the product and about the customers. With this type of market knowledge Milton will be able to meet external users wants and needs and to present them the product on a suitable way. <span />

5 0

3 years ago

Suppose that the reserve requirement for checking deposits is 10 percent and that banks do not hold any excess reserves. If the

Vladimir79 [104]

Answer:

Take a look to the following explanation

Explanation:

Reserve ratio ,10%=0.1

Money multiplier=1/reserve ratio=1/0.1=10

If feds sells 1million$ bond the economy reserves increases by 1 million$ and money supply decrease by 10 million $(1*money multiplier).

If fed changes RR to 5% but banks choose to hold another ,5 percent as excess reserve ,then on aggregate actual reserve ratio will be 10%. So money multiplier would remain same,10 and so the money supply

8 0

3 years ago

Locus Company has total fixed costs of $121,000. Its product sells for $67 per unit and variable costs amount to $57 per unit. N

Trava [24]

Answer:

13,915 units

Explanation:

With regards to the above, we need to determine first the target or desired profit.

Desired profit = $121,000 × 15% = $18,150

The next step is to calculate the contribution margin, which is the difference between selling price and variable cost.

Contribution margin = Sales - Variable cost

Contribution margin = $67 - $57

Contribution margin = $10 per unit

Target sales is therefore;

Target sales = (Fixed cost + Target profit) / Contribution margin

Target sales = ($121,000 + $18,150) / $10

Target sales = $139,150 / $10

Target sales = 13,915 units

8 0

3 years ago