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VMariaS [17]
4 years ago
9

When Tim earned​ $65,000 he purchased 10 novels a year. His income has just increased to​ $68,000 and he plans to purchase 15 no

vels this year.​ Tim's income elasticity of demand for novels equals
Business
1 answer:
trasher [3.6K]4 years ago
5 0

Answer:

8.88

Explanation:

Data provided in the question:

Initial income, I₁ = $65,000

Initial novel purchased, D₁ = 10

Final income, I₂ = $68,000

Final novel purchased, D₂ = 15

Now,

Tim's income elasticity of demand for novels will be

= \frac{(\frac{D_2-D_1}{D_1+D_2})}{(\frac{I_2-I_1}{I_1+I_2})}

on substituting the respective values, we get

= \frac{(\frac{15-10}{10+15})}{(\frac{68,000-65,000}{65,000+68,000})}

= [5 ÷ 25] ÷ [3,000 ÷ 133,000 ]

= 0.2 ÷ 0.0225

= 8.88

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Answer:

The correct answer is letter "A": the difference in total costs that result from selecting one choice instead of another.

Explanation:

Differential cost is the result of subtracting the costs of two different options from where only one is to be selected. The concept is mostly used at the moment of producing when the firm must find out the difference in manufacturing one more unit of a good. Differential costs can be variable or fixed costs.

4 0
4 years ago
Stephen discovers that the tennis shoes he just purchased are being offered
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The discovery of Stephen realizing that the same shoes he just purchased are being offered for a lower price by the same company is known as predatory pricing.

<h3>What is Predatory Pricing?</h3>

Predatory pricing is a marketing strategy that employs the approach of discounting on a wider scale, in which a dominating corporation in an industry may purposefully lower the prices of a product to potential loss levels within the short term.

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Learn more about predatory pricing here:

brainly.com/question/14451551

8 0
2 years ago
Michelle is typing an e-mail to team members. The e-mail includes some issues that were discussed during a meeting and decisions
MaRussiya [10]

Answer:

issues that were discussed in the meeting

Explanation:

4 0
3 years ago
The following costs related to Wintertime Company for a relevant range of up to 20,000 units annually: Variable Costs: Direct ma
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Answer:

$120,000

Explanation:

The total profit for Winter company is computed as seen below

($15 × 15,000 units) - [$10,000 + $5,000(($2.50 + $0.75 + $1.25 + $1.50)15,000)]

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4 0
3 years ago
Roger is currently in the hospital, having been diagnosed with terminal cancer. Roger would like Kim, a close friend, to make an
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Answer:

The correct answer is letter "E": a durable power of attorney.

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A power of attorney is a document stating another party is legally right to act on an individual's behalf. As soon as the individual is capable to handle business, the power of attorney loses validity.  

A durable power of attorney, instead, is used when the individual delegating power to another party has knowledge of being impaired soon and possibly is not going to recover. Thus, the durable power of attorney will be valid since the individual cannot handle business until the moment of his or her decease. During that time, the selected party is right to make health and finance decisions on behalf of the individual.

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3 years ago
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