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Blizzard [7]
3 years ago
14

You and your college roommate eat three packages of Ramen noodles each week. After graduation last month, both of you were hired

at several times your college income. You still enjoy Ramen noodles very much and buy even more, but your roommate plans to buy fewer Ramen noodles in favor of foods she prefers more. When looking at income elasticity of demand for Ramen noodles, yours woulda. be negative, and your roommate's would be positive b. be positive, and your roommate's would be negative c. be zero, and your roommate's would approach infinity d. approach infinity, and your roommate's would be zero.
Business
1 answer:
My name is Ann [436]3 years ago
3 0

Answer:

yours would be positive and your roommate's would be negative.

Explanation:

Income elasticity of demand is defined as the change in quantity demanded as a result of changes in income earned by an individual. It is calculated by finding a ratio of percentage change in quantity demanded to percentage change in price.

Since there is an increase in the noodles I take with increase in income the numerator of this ratio will be positive, and the denominator will be positive indicating income increase. So the ratio will be positive.

On the other hand my roommate buys less of Ramen noodles so the numerator will be negative. The denominator will be positive to indicate increased income. The result of the income elasticity in this case will be negative.

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denis-greek [22]
The Country to have the most expensive gas in Eritrea at $9.61 . <span />
8 0
3 years ago
Which country uses a franc as its basic monetary unit?
VMariaS [17]

Answer:

Franc, originally a French coin but now the monetary unit of a number of countries, notably Switzerland, most French and former Belgian overseas territories, and some African states; at one time it was also the currency of France, Belgium, and Luxembourg.

5 0
3 years ago
You operate a car detailing business with a fixed amount of machinery​ (capital), but you have recently altered the number of wo
NemiM [27]

Answer:

1.5 cars

Explanation:

Three employees can produce a total of:

= 4 × 3

= 12 cars in an hour.

Five employees can produce a total of:

= 3 × 5

= 15 cars in an hour

So, the increase in total product of labor as I increase the labor from 3 to 5 employees:

= Total product when 5 employees are hired - Total products when 3 employees are hired

= 15 - 12

= 3 cars.

So, the marginal product of moving from 3 to 5 workers:

= 3 ÷ 2

= 1.5 cars

3 0
4 years ago
Expected return is defined as _____. A. the summed value of each possible rate of return weighted by its probability B. the summ
Sholpan [36]

Answer: A. the summed value of each possible rate of return weighted by its probability

Explanation:

The Expected Return of a project is indeed the summed value of each possible rate of return weighted by its probability.

When going into a project, a financial analyst has to account for the possible outcomes that could happen such as interest rates rising or falling.

They then take the various likelihoods and assign rates of returns to them that are either known or anticipated. They will then give each likelihood a probability of it occuring and then give a Weighted Average of these probabilities along with the rates of returns for those likelihoods.

The summed figured that they get is what is known as the Expected return and it includes the various likelihoods that could happen to the project.

4 0
4 years ago
A jeans maker is designing a new line of jeans called Slims. The jeans will sell for $355 per pair and cost $262.70 per pair in
shtirl [24]

Answer:

a.$92.30

b.27.55%

Explanation:

a. Computation for the contribution margin per pair

Sales 355.00 per pair

Less:Variable cost $262.70 per pair

Contribution margin $92.30 per pair

Therefore the Contribution margin per pair will be $92.30

b. Computation for the contribution margin ratio.

Using this formula

Contribution margin ratio=Contribution margin per unit/Selling price per unit

Where,

Contribution margin per unit =$92.30

Selling price per unit =$335.00

Let plug in the formula

Contribution margin ratio=$92.30/$335.00

Contribution margin ratio =27.55%

Therefore the Contribution margin ratio will be 27.55%

4 0
3 years ago
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