On August 1, 2018, Deeva, Inc., sold equipment and accepted a six-month, 9%, $50,000 note receivable. Deeva's year-end is Decemb
1 answer:
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Answer:
c) 10% more peanut butter on the shelves
Explanation:
Since peanut butter has a negative income elasticity of demand (-0.5) with a decrease in income, there should be an increase in the demand. This is usually true for cheaper goods or goods with low added value. The change in demand (D) is represented as follows:
As a result, you should stock 10% more peanut butter on the shelves.
The answer is c).