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Black_prince [1.1K]
3 years ago
5

If Cassandra bought 12 blouses last year when her income was $46,000 and she buys 14 blouses this year when her income is $52,00

0, then her income elasticity of demand for blouses is approximately a.-2.52. ob. +1.26 c -0.80. d. -1.26. e. +0.80.
Business
1 answer:
r-ruslan [8.4K]3 years ago
8 0

Answer:

b. +1.26

Explanation:

The computation of the income elasticity of demand is shown below:

= (Percentage Change in quantity demanded) ÷ (Percentage Change in income)

= (change in quantity demanded ÷ average of quantity demanded) ÷ (change in income ÷ average of income)  

where,  

Change in quantity demanded would be

= Q2 - Q1

= 14 blouses - 12 blouses

= 2 blouses

And, average of quantity demanded would be

= (12 + 14) ÷ 2

= 13

Change in income would be

= $52,000 - $46,000

=  $6,000

And, average of income would be

= ($52,000 + $46,000) ÷ 2

= 49,000

So, after solving this, the income elasticity of demand is +1.26

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:0/0:0 even h i’d s a square tune quar an tine is bad
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3 years ago
What is the variable cost of sterilizing an instrument using the new equipment
yanalaym [24]

Answer:

Results are below.

Explanation:

Giving the following information:

Month Number of instruments used Total autoclave cost

January 634 $7,466

February 534 6,526

March 734 7,148

April 934 9,028

May 834 7,744

June 1,034 8,596

July 1,234 10,009

August 1,134 9,924

<u>To determine the fixed and variable cost, we need to use the high-low method:</u>

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (10,009 - 6,526) / (1,234 - 534 )

Variable cost per unit= $4.9757 per unit

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 10,009 - (4.9757*1,234)

Fixed costs= $3,869

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 6,526 - (4.9757*534)

Fixed costs= $3,869

Total cost= 3,869 + 4.9757x

x= number of instruments

5 0
3 years ago
The risk free rate of return is 2.5% and the market risk premium is 8%. Rogue Transport has a beta of 2.2 and a standard deviati
4vir4ik [10]

Answer:

20.1%

Explanation:

In capital asset prcing model (CAPM), cost of equity (or cost of retained earnings in this context) is calculated as below:

<em>Cost of equity = risk-free rate of return + beta x (market index return - risk-free rate of return)</em>

Please note that <em>(market index return - risk-free rate of return)</em> is equal to <em>market risk premium</em>

Putting all the number together, we have:

Cost of equity/retained earnings = 2.5% + 2.2 x 8% = 20.1%

<em>Note: The dividend growth rate, tax rate & stock standard deviation is not relevant in answering the question.</em>

6 0
3 years ago
Money that has been or will be paid regardless of the decision whether to proceed with the project is:
bezimeni [28]

Answer:

Sunk costs.

Explanation:

Sunk costs refers to historical funds spent or incurred that cannot be recovered. Such costs are considered irrelevant during decision making which impacts on the business's future as they present no influence on present or future prospects.

Example

ABC investors decide to acquire land and develop residential houses at a location X. This decision is informed on the fact that the government had recently enacted a policy that led to an increase in demand for residential properties in that location. 6 months into construction of the residential houses, the government reviews and rescinds the policy. This leads to a sharp decline in property values in location X. ABC investors had already incurred 10 million dollars in the project. The 10 million dollars is considered sunk cost.

Sunk costs are the opposite of relevant costs because they can't be changed or recovered, as they've been spent or contracted in the past already. Hence, relevant cost are relevant for decision-making purposes but not sunk costs.

Hence, money that has been or will be paid regardless of the decision whether to proceed with the project is sunk costs.

4 0
3 years ago
PLEASE ANSWER SOON!!!!
Gwar [14]
Currency I think.  It's given in exchange for an item.
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3 years ago
Read 2 more answers
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