1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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%

You might be interested in
A program requiring work in exchange for temporary assistance is called _____.
ELEN [110]
Workfare. Your Welcome!
3 0
3 years ago
Read 2 more answers
A liquid asset is one that is easy to cash in.
Yuliya22 [10]
Cash on hand is the most liquid asset. Money in a savings account is a popular liquid asset and is very easy to withdraw and more liquid than a loan to a business.
5 0
2 years ago
Read 2 more answers
Canon was able to redesign the copying machine so that it didn't need professional service—reliability was built directly into t
Studentka2010 [4]

Answer:

architectural innovation

Explanation:

The scenario is describing the term known as architectural innovation. This refers to the innovation of the specific architecture of any product that changes and/or modifies the way the different components of the machine link or relate to each other, thus allowing it to perform new functions or the same functions but in a much more user-friendly manner. This is what Canon did by changing the architecture of the copying machine so that it was more user-friendly for the end consumer.

5 0
3 years ago
Explain two situations where scarcity effects you
s344n2d4d5 [400]
When I got into a crash ig
4 0
3 years ago
Read 2 more answers
Milton is the sales manager of a cosmetics company that offers a wide range of face creams, lipsticks, and eye makeup. some of t
posledela
To carry out this process of division of the <span>company's vast customer base into distinct segments so that the company's sales people can specialize in one line of business only</span>, it is necessary for Milton to possess sound market knowledge. Sound market knowledge involves knowledge, data and information about the product and about the customers.  With this type of market knowledge Milton will be able to meet external users wants and needs and to present them the product on a suitable way.  <span />
5 0
3 years ago
Other questions:
  • At the end of its first year of operations on December 31, 2020, Carla Vista Company's accounts show the following.
    11·1 answer
  • What is a caterer what is his job
    7·1 answer
  • Contour Autos competes against the global leaders in the automobile industry by developing and selling acceptable quality vehicl
    15·1 answer
  • Blythe Corp. is a defendant in a lawsuit. Blythe's attorneys believe it is reasonably possible that the suit will require Blythe
    15·2 answers
  • The understatement of the ending inventory balance causes:
    6·1 answer
  • Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company’s products, a football helmet for the N
    14·1 answer
  • The purchase price and all costs to bring an asset to its desired condition and location for use should be ________.
    6·1 answer
  • India now has pockets of strengths in key high-technology industries such as software and pharmaceuticals. Why do you think Indi
    13·1 answer
  • Sales Tax - You go to the store and purchase a shirt for $21.18, how much will you pay
    11·1 answer
  • How many patents have been issued in the united states?
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!