Answer:
0.42
Explanation:
Income elasticity of demand measures the responsiveness of quantity demanded to changes in income.
If the absolute value of income elasticity of demand is greater than one, it means demand is elastic.
If the absolute value of income elasticity of demand is less than one, it means demand is inelastic.
Income elasticity of demand = percentage change in quantity demanded / percentage change in income
5/12 = 0.42
Answer:
$64,000
Explanation:
The calculation of the cash disbursements for selling and administrative expenses on the December selling and administrative expense budget is given below;
= Variable Selling & Administrative Expenses + Fixed Seliing & Administrative Expenses - Depreciation
= 3,200 units × $3.10 + $60,800 - $6,720
= $64,000
Answer:
$332,000
Explanation:
Initial investment refers to the cash outflow needed to begin a project or start a business. It includes capital expenditure, modification cost, and working capital needed.
Based on this, the initial investment outlay can be calculated as follows:
Initial investment outlay = Base price + Additional modification cost + Net operating working capital = $250,000 + $50,000 + $32,000 = $332,000
<span>Due to the existence of a large number of similar, but not identical, substitutes in most communities, the market for chiropractors is best considered monopolistically competitive.
A monopolistic competition is when different producers sell products that are differentiated by branding/quality. Since they differentiate in such ways, they are not perfect substitutes for one another.
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