Income elasticity of demand is a measure of responsiveness of the quantity of goods or services demanded to a change in the income of the people demanding the good. It is calculated as the ratio of the percentage change in the quantity demanded to the percentage change in income.
In this case, percentage change in quantity demanded is 25% and percentange change in income is 20%
Therefore, income elasticity = 25/20
= 1.25
Answer:
The correct option is A and B.
Explanation:
The following will lead to increase in the productivity of the business.
1. By increase in the physical capital stock of each worker
2. By increasing the human capital of each worker.
Increasing in human will lead to increase in productivity and also the increase in the physical capital, the worker will able to increase the productivity.
Businesses use copyright, patents, and trademarks, to keep other companies from taking their idea or product. Copying a trademarked or patent product is illegal. (piracy)
Answer:
Sales Revenue $811,419
Interest Revenue $12,690
Cost of Goods Sold $575,593
Administrative Expenses $189,840
Income Tax Expense $31,877
Dividends $18,984.
<u>Year end Closing Entries</u> Dr. Cr.
1.
Sales revenue $811,419
Interest revenue $12,690
Income Summary $824,109
2.
Income Summary $797,310
Cost of Goods Sold $575,593
Administrative Expenses $189,840
Income Tax Expenses $31,877
3.
Income Summary $26,799
Retained Earning $26,799
4.
Retained Earning $12,690
Dividend $824,109
Answer:
250,000
Explanation:
The cost of consumption in a period is defined as utility cost.
Machine setup cost is actually a capital expense and Machine repair cost is needed to maintain the operations/working of the machine.
The only consumption in this example is Heating and lighting cost. The electricity / Gas is used for this purpose.
