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3 years ago

The distinction between a normal and an inferior good is

Business

1 answer:

Romashka-Z-Leto [24]3 years ago

5 0

Answer:

The correct answer is C. when income increases, demand for a normal good increases while demand for an inferior good falls.

Explanation:

The normal good is that whose quantity demanded for each of the prices increases when the rent increases. A lower good is one whose quantity demanded decreases when income increases. The inferior goods are usually those for which there are higher quality alternatives. When it comes to a normal good, increasing the income of the consumer increases the quantity demanded at each price. Causing a shift in demand to the right.

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Diogo has a utility function,U(q1, q2) = q1 0.8 q2 0.2,where q1 is chocolate candy and q2 is slices of pie. If the price of slic

guapka [62]

Answer:

$(0.5 \times 8q_2)+q_2=100\\\\5q_2=100\\\\q_2=20$

since $q_2 = 20$

$q_1 = 8*20\\\\q_1=160$

Explanation:

U(q₁ q₂)

$q_1^{0.8}q_2^{0.2}\\\\P_1= \$0.5 \ P_2=\$1 \ Y=100$

Budget law can be given by

$P_1q_1+P_2q_2=Y\\\\0.5q_1+q_2=100$

Lagrangian function can be given by

$L=q_1^{0.8}q_2^{0.2}+ \lambda (100-0.5q_1-q_2)$

First order condition csn be given by

$\frac{dL}{dq} =0.8q_1^{-0.2}q_2^{0.2}-0.5 \lambda=0\\\\0.5 \lambda=0.8q_1^{-0.2}q_2^{0.2}---(i)$

$\frac{dL}{dq} =0.2q_1^{0.8}q_2^{-0.8}- \lambda=0\\\\ \lambda=0.2q_1^{0.8}q_2^{-0.8}---(ii)$

$\frac{dL}{d \lambda} =100-0.5q_1-q_2=0\\\\0.5q_1+q_2=100---(iii)$

From eqn (i) and eqn (ii) we have

$\frac{0.5 \lambda}{\lambda} =\frac{0.8q_1^{-0.2}q_2^{0.2}}{0.2q_1^{0.8}q_2^{-0.8}} \\\\0.5=\frac{4q_2}{q_1}\\\\q_1=8q_2}$

Putting $q_1=8q_2$ in euqtion (iii) we have

$(0.5 \times 8q_2)+q_2=100\\\\5q_2=100\\\\q_2=20$

since $q_2 = 20$

$q_1 = 8*20\\\\q_1=160$

3 0

3 years ago

You are scheduled to receive $35,000 in two years. When you receive it, you will invest it for 6 more years at 7 percent per yea

bazaltina [42]

Answer:

$52,526

Explanation:

In two years i have $35,000.

the amount invested thus the Principle amount is $35,000

Pv = $35,000

r = 7 %

PMT = $0

n = 6

Fv = ?

Note that The 8 th year is the sixth year of this investment.

FV = PV × (1 + r) n

= $35,000 × ( 1 + 0.07) 6

= $52,525.56

= $52,526

4 0

3 years ago

What is the standard deduction used for

jarptica [38.1K]

Hey there,

Answer:

It is used to reduce the taxpayer's tax bill

Hope this helps :D

<em>~Top</em>

4 0

3 years ago

Read 2 more answers

Wildhorse Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures we

bija089 [108]

Answer:

10.63%

Explanation:

Weighted average interest rate for interest capitalization purposes.

10%, 5-year, $2,227,300 note payable

11%, 4-year, $3,799,000 note payable.

Principal

$2,227,300

$3,799,000

Total $6,026,300

Interest

10% × $2,227,300 =$222,730

11% ×$3,799,000 =$417,890

Total $640,620

Weighted average interest rate

$640,620/$6,026,300

=10.63%

Weighted average interest rate for interest capitalization purposes.

Expenditures

March 1 $1,812,000

June 1 $1,212,000

December 31 $3,007,840

Total $6,031,840

Capitalization period ×Expenditure =Weighted average accumulated period

10/12 ×$1,812,000 =$1,510,000

7/12×$1,212,000=$707,000

Total $2,217,000

Therefore the weighted-average interest rate for interest capitalization purpose is 10.63%

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4 years ago

A landlord has an apartment to rent. even though it is vacant, when two college students come to inquire, the landlord informs t

Nata [24]

Would it be "Discrimination?"

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3 years ago