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Pachacha [2.7K]

3 years ago

5

Suppose that disposable income is $1,000, consumption is $700, and the marginal propensity to consume (MPC) is 0.6. If disposabl

e income then increases by $100, consumption and savings will equal which of the following

1 answer:

Tom [10]3 years ago

5 0

Answer:

E. Consumption = $ 760

Savings = $ 340

Explanation:

Given that,

Disposable Income = 1000

Consumption = 700

MPC = 0.6

Change in disposable income= 100

Recall that

MPC = Change in consumption ÷ change in disposable income.

Therefore

change in consumption = MPC × Change in disposable income.

Thus

Change in C = 0.6 × 100

= 60

Therefore

CONSUMPTION = 700 + 60

= $ 760

Again, recall that

I = C + S

Where I = Income and S = Savings

Therefore

S = I - C

I = 1000 + 100 = 1100

C = 760

S = 1100 - 760

SAVINGS = $ 340

C = $760

S = $340

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A service auditor's report on a service center should include a(n) :A. Detailed description of the service center's internal con

SashulF [63]

Answer:

The answer is letter A.

Explanation:

Detailed description of the service center's internal control.

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2 years ago

Your company manufactures two models of speakers, the Ultra Mini and the Big Stack. Demand for each depends partly on the price

Kipish [7]

Answer:

p1 = $259.53 p2 = $381.20

Explanation:

1. Find the revenue function.

This is a typical income maximization problem. Therefore, the first thing we should know is what are the revenues for each product.

Recall that the revenue is given by P * Q

1.a Find the revenue of the Ultra Mini (product 1):

$R_{1} = P_{1} Q_{1}$

$R_{1} =P_{1} (100,000 - 200P_{1} + 10P_{2} )$

$R_{1} =100,000P_{1} -200P_{1} ^{2} +10P_{2}P_{1}$

1.b Find the revenue of the Big Stack (product 2):

$R_{2} = P_{2} Q_{2}$

$R_{2} =P_{2} (150,000 + 10P_{1} - 200P_{2} )$

$R_{2} = 150,000P_{1+2} +10P_{1}P_{2} -200P_{2}^{2}$

2. Find the marginal revenues.

The revenue function must be derived from the price.

For product 1, we derive from P1:

$MR_{1} = 100,000 -400P_{1} +10P_{2}$

For product 2, we derive from P2:

$MR_{2} = 150,000 + 10P_{1} - 400P_{2}$

3. Create a system of linear equations in two unknowns

With the marginal revenue functions we create a system of linear equations in two unknowns (p1 and p2) and equal 0.

$100,000 - 400P_{1} +10P_{2} = 0\\150,000 + 10P_{1} -400P_{2} = 0$

4. Resolve the previous system

4.a. To make it easier, we can rethink the terms of the system like this:

$100,000 - 400P_{1} +10P_{2} = 0$ is the same as saying:

$P_{2} = \frac{-100,000 + 400P_{1} }{10}$

And $150,000 + 10P_{1} -400P_{2} = 0$ is the same as saying:

$P_{2}=\frac{150,000+10P_{1} }{400}$

Therefore:

$\frac{-100,000 + 400P_{1} }{10} =\frac{150,000+10P_{1} }{400}$

Notice that now we only have one unknown (P1).

4.b. In order to eliminate fractionals, we can multiply both terms by 400:

$\frac{400}{10} (-100,000 + 400P_{1} ) = \frac{400}{400} (150,000 + 10P_{1} )$

$(40)(-100,000+400P_{1}) =150,000+10P_{1}$

$-4,000,000+16,000P_{1} =150,000+10P_{1}$

4.c. We solve the equation, putting numbers on one side and unknowns on the other:

$-4,000,000-150,000=10P_{1} -16,000P_{1}$

$-4,150,000=-15,990P_{1}$

$\frac{-4,150,000}{-15,990} =P_{1}$

$P_{1} = $ 259.53$

4.d. Once P1 has been identified, we replace it in any of the terms of the original system of equations (those established in 4.a).

$P_{2}= \frac{-100,000+400(259.53)}{10}$

$P_{2} = 381.20$

5 0

3 years ago

The benefits of belonging to professional organizations include the development of professional contacts and the opportunity to

ziro4ka [17]

Answer:

True

Explanation:

Belonging to a professional organizations provides opportunity to share knowledge and experience and learn from others. It also avails one opportunity to share contacts with other professionals who may be of help in securing business opportunities and resolving business issues .

7 0

3 years ago

Read 2 more answers

Suppose that Dunkin Donuts reduces the price of its regular coffee from $2 to $1 per cup, and as a result, the quantity sold per

harkovskaia [24]

Answer:price elasticity of demand for Dunkin Donuts’ regular coffee is 1.8

Explanation: Using the midpoint formnulae

Price elasticity of Demand =percentage change in quantity demanded/ Percentage change in price.

Percentage change in quantity = new quantity - old quantity / (new quantity + old quantity)/2 x 100

= 40-10/(40+10)/ 2 = 30 /25 = 1.2 x 100 =120%

Percentage change in price = new price - old price / new price + old price)/2 x 100

= 1- 2 / (1+2)/2= -1/1.5x 100 = -66.67 %

Price elasticity of Demand =percentage change in quantity demanded/ Percentage change in price.

= 120%/-66.67%= -1.79 = -1.8

For Price elasticity of demand, the sign is not included and the basis for elasticity is on the value itself . here we can conclude that the Price elasticity of demand for Dunkin donut is 1.8 and elastic because a fall in price led to an increase in amount being sold.

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3 years ago

The Keynesian view of economics assumes that:

olga nikolaevna [1]

Answer:

The correct answer is

b. wages are sticky.

good luck

7 0

3 years ago