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GrogVix [38]
3 years ago
10

The quantity demanded of Good A has recently increased by 2% in response to an increase in income. By how much must income have

increased (as a percentage) for the income elasticity of demand to equal 0.2?
Business
1 answer:
Shalnov [3]3 years ago
4 0

Answer:

Income must have increased by 10%

Explanation:

To find the answer, we use the Income Elasticity of Demand (IED) formula:

IED = Change in quantity demanded / change in income

Now, we plug the amounts into the formula and solve:

0.2 = 0.02 / X

0.2 *X = (0.02 / X ) * X

0.2X = 0.02

0.2X*100 = 0.02*100

20X = 2

20X/20 = 2/20

X = 1/10

X = 0.1

X = 10%

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Answer:

c) by setting MR(q)=MC(q) at a q for which p(q) is at least AVC(q)

Explanation:

Profit is maximised at MR= MC and price is greater than MC for monopoly.

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3 years ago
Project management is not without its critics. As you have read, project management has experienced noteworthy failures in imple
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Answer:

The factors that cause the failure of project management to achieve its goals include the following:

1. The scope of some projects are not well-defined and detailed.

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4. Projects that lack formal methods and strategies often fail.

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7. Leadership is key to effective project management.  Without senior management or politicians' buy-in, some projects face massive failure.

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7 0
2 years ago
What is the role of incentives in the workplace?
Fynjy0 [20]

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a way to keep workers motivated to do their job to the best of their ability. having something to look forward to.

Explanation:

3 0
3 years ago
Read 2 more answers
Nature's way, a health food store, has just opened in a popular neighborhood shopping center next to silver's gym, a physical fi
Afina-wow [57]
The nature's way is relying on a location principle called retail compatibility. It is where they place their location in a more suitable environment that will fit the category of their business. It could be seen above as because their business is about promoting healthy foods, they are placed near the gym where people in the gym would be attracted to their business.
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3 years ago
The Z−90 project being considered by Steppingstone Incorporated (SI) has an up-front cost of $250,000. The project's subsequent
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Answer:

The right solution is Option a (-$6,678).

Explanation:

Given that:

Up-front cost,

= $250,000

Expected cash flows,

= $110,000

Assuming cost of capital,

= 12%

Now,

The expected net present value will be:

= 250000+0.5\times (110000+25000)\times \frac{1}{12 \ percent}\times (1-\frac{1}{1.12^5} )

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= -6,678 ($)

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