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liq [111]
3 years ago
15

What is income elasticity onlyy

Business
1 answer:
Lina20 [59]3 years ago
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!!

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Each day, Tasty Tortilla Company incurs total costs of $8,000 to process flour into tortillas. The company can sell the tortilla
Murljashka [212]

Answer:

c. The firm will make an additional $4200 in income per day if it sells taco shells instead of tortillas.

Explanation:

Tortilla daily revenue: $8000

Tortilla daily cost: $22500

Taco shell daily revenue: $26,700

Taco shell daily cost: $8000 + $4200 = 12200

Additional income if Taco Shells sold instead of Tortillas: $26,700 - 22,500 = $4200

3 0
3 years ago
"The following per unit cost information is available: direct materials $10, direct labor $4, variable manufacturing overhead $3
natta225 [31]

Answer:

The target selling price =$45  

Explanation:

The target selling price is the sum of the total unit cost plus 25% of the the unit cost

The target selling price = Total per unit cost + (25% × total unit cost)

The total unit cost is the sum of all the costs involved making the product available to the consumer.

The sum of direct material cost , labour cost variable manufacturing, fixed manufacturing overhead, variable selling and administrative expenses and fixed selling and administrative expenses.

The target selling price would be determined using te steps below:

Step 1: Calculate the unit cost

Total unit cost = 10 + 4 + 3 + 10 + 1 + 8 = 36  

Total unit cost = $36

Step 2: Calculate the target selling price

Target selling price = Unit cost + (25%× unit cost)

The target selling price = 36 + (25% × 36) = $45  

The target selling price =$45  

8 0
3 years ago
What is the relationship between aggregate supply, aggregate demand , and gross domestic product?
lukranit [14]
Aggregate demand over the long-term equals gross domestic product (GDP) because the two metrics are calculated in the same way. GDP represents the total amount of goods and services produced in an economy while aggregate demand is the demand or desire for those goods
8 0
2 years ago
What does an risk management plan addendum look like?
S_A_V [24]

Explanation:

Risk Management is the integral part of any project and it is an ongoing process. When the risk management process is initiated at the beginning of the project, most of the risks involved may be identified and it can be controlled or some measures to counter act them can be developed like  involved with the Change Management or the program management.

Risk management addendum contains :

-- introduction

-- target levels

-- acute exposure

-- Estimation of Health Effects for Lead

-- Cumulative Risk

The risk characterization must clearly exhibit the core values of consistency, transparency, reasonableness and clarity.

4 0
3 years ago
The 2013 annual report of Dow Chemical disclosed the following: Deferred tax assets decreased by $1,503 million and deferred tax
Arisa [49]

Answer:

The correct option is (c) Increase tax expense by $1,541 million

Explanation:

Step 1. Given information.

  • Decrease in Deferred Tax Asset 1503 Million
  • Increase in Deferred Tax Liabilities 38 Million

Step 2. Formulas needed to solve the exercise.

Increase in Tax Expense= Decrease in Deferred Tax Asset + Increase in Deferred Tax Liabilities  

Step 3. Calculation.

Increase in Tax Expense = 1503+38 =  1541 Million  

Step 4. Solution.

The correct option is (c) Increase tax expense by $1,541 million

5 0
2 years ago
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