Answer:
Income elasticity = 2
Normal good
Explanation:
Below is the given values:
Percentage decrease in consumers income = 10%
Percentage decrease in quantity demanded = 20%
Use the below formula to find the income elasticity:
Income elasticity = % change in quantity demanded / % in income
Income elasticity = -20/-10
Income elasticity = 2
Since the elasticity is 2 that means good is normal good.
Answer:
Comparative advertisements need legal support for their claims and must not misrepresent competing products/brands
Explanation:
Comparative advertisement is also called advertising war. A competitor is named in the advertisement and reasons are given why the competitor's product is inferior to the one being advertised.
In this type of advertisement to prevent adverse legal action the company needs to carry out extensive research to provide legal backing for their claims.
Firms must also not misrepresent the competitor's product as this can lead to legal action.
Answer: It involves the movement, over generations, of the bulk of jobs from agriculture to manufacturing and service industries
Explanation:
Development involves the movement, over generations, of the bulk of jobs from agriculture to manufacturing and service industries. Technology is also influenced by technological change.
The least developed countries have most of their populations employed in the primary sector like agriculture and haven't completed the transition from manufacturing to services and have not yet entered the information age.
Answer:
$214,000
Explanation:
Total Revenues ($740,000 + $103,000) =$843,000
−Total Operating costs ($570,000 + $59,000)
=$629,000
= Total operating profit = $214,000
Therefore Assuming that there are no changes to the existing body shop business, operating profits would be expected to increase during 2021 by $214,000
