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3 years ago

In words, what does it mean when an economic consultant states:" kevin's income elasticity of red wine is equal to 6?

1 answer:

6 0

When an economist says that "Kevin's income elasticity of red wine is 6" he means that if Kevin's income increases by 10%, the quantity of red wine demanded by Kevin rises by 60%. So, red wine is income elastic. Since the income elasticity is greater than 1, red wine is a luxury good for Kevin.

Income elasticity measures the change in the quantity of goods demanded relative to a change in income.

If an increase in income results in a decrease in the quantity of goods demanded, then that good is an inferior or cheap good. The income elasticity of a cheap good is negative.

If the demand for a good rises with an increase in income, then that good is a normal good. The income elasticity of normal goods is greater than zero.

If an increase in income results in a greater increase in the quantity of goods demanded, then that good is a luxury good. The income elasticity of a luxury good is greater than 1.

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MakerMan Manufacturing creates heavy-duty hand tools. It produces a new collapsible hammer called the SmackN’Stash. One of the f

hammer [34]

Answer:

Anyone who is injured by a defective product may sue the manufacturer, merchants, and all others who handled the product.

Explanation:

Strict liability means that an injured party may sue another even when they don not prove a case against them. A party is held liable for injuries from a certain activity.

For example a company that produces tools may be held liable when the machinery it produces causes injury during use by the injured party.

The injured party need not prove negligence of the defendant.

In this instance MakerMan Manufacturing is liable for the hammer that injured one of Rob's coworkers while they were using it.

Strict Liabilities are classified into 3: animals owned, product liability, and abnormally dangerous acts.

8 0

4 years ago

Cushing Manufacturing assigns overhead based on machine hours. The MillingDepartment logs 1,800 machine hours and Cutting Depart

morpeh [17]

Answer:

Explanation:

The journal entry is shown below:

Milling work in progress A/c Dr $9,000

Cutting work in progress A/c Dr $15,000

To Manufacturing overhead A/c $24,000

(Being overhead allocation is recorded)

The milling work in progress is computed by

= Milling department machine-hours × $ overhead rate

= 1,800 machine hours × $5

= $9,000

And, The cutting work in progress is computed by

= Cutting department machine-hours × $ overhead rate

= 3,000 machine hours × $5

= $15,000

5 0

3 years ago

One factor that shifts the consumption schedule is household wealth. Households build wealth by spending their incomes as they e

yanalaym [24]

Answer:

the correct answer is *not spending all their current incomes.

Explanation:

if you look at all the other options, they are not creating wealth but depletes it away. the only way to build wealth is by investing and saving over time. ideally, by not spending all their current income.

6 0

3 years ago

Would you be more or less willing to buy gold under the following circumstances: LOADING... Gold again becomes acceptable as a

Rainbow [258]

You would be more likely too

3 0

4 years ago

Foreign currencies are traded:

pychu [463]

Answer: over the counter

Explanation: In simple words, over the counter markets are the platform in which the securities like foreign exchange are traded without any supervision. There is no monitoring authority in such markets as opposed to the structure of stock exchanges.

Foreign currencies are traded in over the current markets as these are highly fluctuating in values and the margins are very low in trading such securities. Therefore, to pay a mediator is not feasible while dealing in foreign currencies.

Hence from the above we can conclude that the correct answer is option B.

7 0

4 years ago