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wlad13 [49]
3 years ago
5

Lauren\'s salary decreases from $37,000 to $30,000. she decides to reduce the number of outfits she purchases each year from 20

to 19. calculate her income elasticity of demand for new outfits.
Business
2 answers:
Tom [10]3 years ago
8 0

Answer:

Her income elasticity of demand for new outfits is 0.266.

Explanation:

The elasticity of demand is the percentage of change in the demand divided by the percentage change in income.

Percentage change in demand

The demand changes from 20 to 19. 19/20 = 0.95, so 19 is 95% of 20. There is a 1-0.95 = 0.05 = 5% change in demand.

Percentage change in income

Lauren's income decreases from 37000 to 30000. 30/37 = 0.811. There is a 1-0.811 = 0.189 = 18.9% change in demand.

So her income elasticity of demand for new outfits is:

IE = \frac{0.05}{0.189} = 0.2646

Her income elasticity of demand for new outfits is 0.266.

ella [17]3 years ago
4 0

Income elasticity of demand= 1/7000*100%=0.01

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The reporting of net cash provided or used by operating activities that lists the major items of operating cash receipts, such a
Olenka [21]

Answer:

a.

Explanation:

‘Cash Flow Statement’ is one of major financial statement that indicates the inflow and outflow of cash along with the reasons by categorizing each cash transaction in three activities i.e., operating, investing or financing activity. Non-cash transactions are not considered while preparing a cash flow statement.  

Operating Activities records the cash transactions involved in the operations of the business are recorded under ‘operating activities’ in the cash flow statement.  

Examples: Revenue earned, expenses incurred etc.  

There are two methods to prepare the cash flow statement. The only difference between both the methods is the way of presenting cash flow from operating activities.  

The two methods of presenting cash flow statement are:  

  1. Direct method: Operating activities section under direct method reports the amount of cash received and paid by the company during the period.  
  2. Indirect method: Operating activities section under indirect method reports the net income and later adjusts the transactions to convert it to cash basis of accounting.  

3 0
3 years ago
1. You’ve been hired by Nielsen Company to study the market for potatoes. Demand in the potato market is characterized by the de
icang [17]

Answer:

P = MR = 1

Explanation:

The demand function is q = 25 - 12p.

The  total income is the price of potatoes multiplied by the quantities of potato --> P * Q

p*q = p*(25-12p)

p*q = 25p - 12p^2

the first derivative of the previous equation is the marginal revenue. In perfect competition the Price = Marginal revenue.

First derivative of total income ---> 25-24p

And MR = P

25-24p=p

25=25p

<h2>p=1</h2>

8 0
3 years ago
Roy dies and is survived by his wife, Marge. Under Roy’s will, all of his otherwise uncommitted assets pass to Marge. Based on t
tatiyna

Answer:

Explanation:

a.) R, M and M's sister A claims equivalent tenure in timberland worth $1.2 million. Despite the fact that A completed the first price tag, military conclusion is constrained to the degree of R's offer in Timberland. So military reasoning is $0.4 million (1/3 of $1.2 million)

Therefore, R's martial deduction is $0.4 million.

b.) Living arrangement worth $900,000 is claimed by R and M as occupants by the sum with right of survivor-ship. Despite the fact that R outfitted unique buy $450,000 ($900,000/2) will be remembered for Roy's gross domain and this sum speaks to the property that is given to M for reason for martial deduction.

In this way, R's martial deduction is $450,000

c.) Insurance policy on R's life is claimed by M and payable to her as the assigned recipient. It won't be remembered for net bequest of R and arrangement measure of $1 million isn't qualified for martial deduction. This is on the grounds that, martial deduction is permitted distinctly for property that is remembered for the perished companion's gross bequest.

Therefore, R's martial deduction is $0 million

d.)Insurance policy on R's life worth $500,000 possessed by R and M as the recipient. Despite the fact that the assigned recipient for protection arrangement on R's life is M (Roy's significant other), the sum is to be remembered for R's gross domain as it is possessed by R. This sum speaks to the property that is given to M for motivations behind martial deduction

Therefore, R's martial deduction is $500 million

e.) Dissemination from qualified pension plan of $1.6 million. Whole measure of $1.6 million will be moved to R's better half and it will be qualified for martial deduction

Therefore, R's martial deduction is $1.6 million

6 0
3 years ago
Develop a realistic example in which you expect positive covariance​
AURORKA [14]

Answer:

Composure and time management

Explanation:

these are realistic goals that people can reach and will have a positive outcome (do you mind following)

3 0
3 years ago
You have an opportunity to invest in Australia at an interest rate of 8%. Moreover, you expect the Australian dollar (A$) to app
earnstyle [38]

Answer:

10.16%

Explanation:

The computation of the effective return for this investment is shown below:

Let us assume that we invested an amount in Australian dollars 100

The return is 8%

After one year, the amount is 108

Now the converting amount is 110.16 (108 × 102%)

Now the effective rate for this investment is

= 110.16 - 100

= 10.16%

7 0
3 years ago
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