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ratelena [41]
3 years ago
5

Assume that a 4 percent decrease in income results in a 6 percent increase in the quantity demanded of a good. The income elasti

city of demand for the good is _______.
Business
1 answer:
notka56 [123]3 years ago
3 0

Answer:

1.5

Elastic

Explanation:

Income elasticity of demand measures the responsiveness of quantity demanded to changes in income.

Income elasticity of demand = percentage change in quantity demanded / percentage change in income.

6 / 4 = 1.5

The income elasticity of demand is elastic

I hope my answer helps you

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"Elkhorn, Inc., which has excess capacity, received a special order for 4,000 units at a price of $15 per unit. Currently, produ
Degger [83]

Answer:

Profit from sale of special order of 4,000 units increase by $14000

Explanation:

given data

order = 4000 units

Sales = $ 190,000  

Cost of Goods Sold = 45,000  

Gross Margin = $45,000

Sales price per unit = $15

solution

as we know that Elkhorn has excess capacity

so sales of 4000 additional units would not affect current sales of 10,000 units

and by production of excess 4000 units fixed cost would not increase

so Variable cost per unit will be

Variable cost per unit = \frac{145000 - 30000}{10000}

Variable cost per unit = $11.5

so

Profit per unit will be

Profit per unit = Sales price -  Variable cost

Profit per unit = $15 - $11.5

Profit per unit = $3.5

so

Profit from sale of special order of 4,000 units increase as  = 4000 × $3.5

Profit from sale of special order of 4,000 units increase by $14000

7 0
3 years ago
If the substitution effect of the real interest rate on saving is larger than the income effect of the real interest rate on sav
Kay [80]

Answer:

rise, fall

Explanation:

In the case when the subsitution effect with respect to the real rate of interest should be saved and more than the income effect on the real rate of interest so if there is an increased in the real rate of interest so there is an increase in the consumption also there is the fall in the savings

Also, if there is a more income effect, the consumption should rise and the savings would decline

Therefore the rise and fall should be considered to fill the blanks

3 0
3 years ago
"You never get a second chance to make a good first impression," captures the importance of the __________ step in the selling p
grigory [225]

Please see the complete question below.

"You never get a second chance to make a good first impression," captures the importance of the __________ step in the selling process.

(A) approach

(B) qualifying

(C) prospecting

(D) introduction

Answer:

The answer is approach (Option A)

Explanation:

The approach step is a vital step in the selling process in which a salesperson makes a call to, or visit a prospective customer for the first time. In other words, it is the step in which the sales person establishes a rapport with the prospective customer.

Thus, it is important that the salesperson makes a good first impression by presenting himself/herself in a professional manner, exhibit credibility as well as all other qualities need to start a good relationship with the prospective customer because first impression lasts long.

6 0
3 years ago
If the observation were real, would it provide evidence for or against the idea that the universe is expanding?
Sav [38]

The <u>Andromeda Galaxy</u>, a member of our local group, is moving toward us.

Our neighborhood galaxy, the Andromeda Galaxy, is moving closer. Since the beginning of the universe, which took place billions of years ago, it has been expanding.

Everything in the universe is drifting away from one another via space because there is no center to the universe. Our local group, which is bound together by gravitational attraction, includes the Andromeda galaxy.

The Andromeda Galaxy is our local group's biggest elliptic galaxy. It is larger than our own galaxy, the Milky Way, by more than thrice. The Local Group, one of many different groups of galaxies that are gravitationally connected to one another, includes both galaxies.

To learn more about the universe expanding

brainly.com/question/14142657

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4 0
2 years ago
The difference between _______ interest and compound interest is that the amount of compound interest earned gets (bigger or sma
mihalych1998 [28]

Answer:

<em>The difference between </em><em><u>simple</u></em><em> interest and compound interest is that the amount of compound interest earned gets (bigger or smaller) </em><em><u>bigger</u></em><em> every year.</em>

________________________________

<em>What</em><em> </em><em>is </em><em>simple</em><em> </em><em>interest?</em>

<em>Simple interest. Money paid only on principal, or money borrowed or invested.</em>

<em>What</em><em> </em><em>is </em><em>compound </em><em>interest?</em>

<em>T</em><em>he </em><em>interest </em><em>which </em><em>is </em><em>a</em><em>dded </em><em>to </em><em>the </em><em>initial </em><em>investment</em><em>,</em><em> </em><em>so that this will gain interest in subsequent time periods.</em>

7 0
2 years ago
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