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Anika [276]
3 years ago
15

Refer to Exhibit 3-6. If a decrease in income causes the demand for good X to shift from D1 to D2, then good X is ____

Business
2 answers:
sergeinik [125]3 years ago
7 0

Answer:

An inferior good

Explanation:

First of all, It is important to understand the behavior of the demand curve, if the demand for a good X causes the demand curve to shift from D1 to D2, this means there is an increase in demand.

If a good increases in demand when there is decrease in income, the good is an inferior good because this is a good that is demanded when buyers have to spend cautiously, this means inferior goods are the opposite of normal goods and buyers would normally not demand such items. Such goods could be inferior either in terms of quality, method of production, manufacturers, e.t.c.

stiv31 [10]3 years ago
3 0

Answer:

(D) an inferior good.

Explanation:

The inferior good had a negative relationship between income and demand.

When the income is lower, the demand increases as people moves away from normal goods to inferior as they are cheaper. And it will decrease once the income level return to his previous level.

This causes even more troubles in recessions to normal company's as the demand decrease and also, it shift to other goods.

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Corporate-level strategy is concerned with ____ and how to manage these businesses. a. whether the portfolio of businesses shoul
bazaltina [42]

Answer:

c. what product markets and businesses the firm should be in

Explanation:

A corporate level strategy focuses on the goals of the company which shall affect the entire organisation, and involves further the entire participation at the company level to achieve such targets from such strategy.

This involves the strategy to calculate properly what is beneficial to the company and what is not beneficial.

Thus, the company considers to what it shall manufacture and what business it should do, in order to attain maximum growth in market.

8 0
3 years ago
Suppose there is a 5 percent increase in the price of good X and a resulting 10 percent decrease in the quantity of X demanded.
lilavasa [31]

Answer:

Price elasticity of demand for X=-2

Explanation:

The price elasticity of demand is a measure of the sensitivity in quantity of good demanded in relation to a change in price. It is often used to determine whether a good is elastic or inelastic. An elastic good is a good whose demand changes spontaneously with a change in price while an inelastic good is a good whose change in price doesn't affect the quantity demanded. Most inelastic goods are needs while most elastic goods are luxuries. A need is an item that most people cannot do without even if the price changes while a luxury is a good that most people can do without especially if the price of that good increases.

The price elasticity of demand can be determined using the expression below;

Price elasticity of demand=%change in quantity demanded/%change in price

where;

%change in quantity demanded={(Final quantity-initial quantity)initial quantity}×100=-10%

%change in price={(Final price-initial price)/initial price}×100=5%

replacing;

Price elasticity of demand=(-10%/5%)=-2

Price elasticity of demand=-2

6 0
3 years ago
Mary exchanged an office building used in her business for some land. Mary originally purchased the building for $45,000, and it
nikklg [1K]

Answer:

The answer is: B) $24,000

Explanation:

This type of exchange is classified as a like-kind exchange (1031 exchange); it is a transaction that allows a company to dispose an asset and acquire another replacement asset without generating a tax liability from the sale of the replaced asset.

$40,000 (replacement asset) + $4,000 (cash paid) - $20,000 (replaced asset) = $24,000

5 0
3 years ago
Which statement best expresses the relationship between manufacturers and retailers?
tensa zangetsu [6.8K]
The right answer for the question that is being asked and shown above is that: "Retailers offer manufacturers deals to be allowed to sell their products." the statement that best expresses the relationship between manufacturers and retailers is that Retailers offer manufacturers deals to be allowed to sell their products.<span>
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8 0
4 years ago
if the market risk premium is 7%, the risk-free rate is 2% and the beta of a stock is 2.0, what is the expected return of the st
Len [333]

Expected return of the stock is greater than 12%.

Using formula, Risk free rate + beta (market risk rate - risk free rate)\

= 2% + 2.0 (7%-2%)

= 13.6 - 0.4* risk premium

Risk premium of a stock is greater than 12%.

A stock's total return takes into account both capital gains and losses as well as dividend income, as opposed to a stock's nominal return, which only displays its price movement. In addition to considering the actual rate of return, investors should consider their ability to withstand the risk involved with a given investment. An investment's return on investment (ROI) provides a general indication of its profitability. The return on investment (ROI) is calculated by subtracting the investment's initial cost from its final value, dividing the result by the cost of the investment, and finally multiplying the result by 100.

Note that the full question is:

If the market risk premium is 7%, the risk-free rate is 2% and the beta of a stock is 2.0, what is the expected return of the stock?

A. less than 12%.

B. 12%.

C. greater than 12%.

D. cannot be determined.

To learn more about returns: brainly.com/question/24301559

#SPJ4

3 0
1 year ago
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