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3 years ago

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Sharon is thinking about opening a bakery. She knows she wants to set her own hours, reduce her stress and make a profit. But sh

e still has a lot to think through. Which of the following would NOT be a good early step?

1 answer:

Karolina [17]3 years ago

6 0

I need the answer to this question too

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Andrina always spends 30 % of her income on thingamabobs. Assume that her income increases by some percentage while the price of

Leni [432]

Answer

<em>What is Income Elasticity of Demand? </em>

Income elasticity of demand is the ratio of percentage change in quantity of a product demanded to percentage change in the income level of consumer. It is a measure of responsiveness of quantity demanded to changes in consumers income.

Income elasticity of demand indicates whether a product is <em>a</em> <em>normal good or an inferior good.</em> When the quantity demanded of a product increases with an increase in the level of income and decreases with decrease in level of income, we get a positive value for income elasticity of demand. A positive income elasticity of demand stands for a normal (or superior) good. When the quantity demanded of a product or service decreases in response to an increase and increases in response to decrease in the income level, the income elasticity of demand is negative and the product is an inferior good.

Formula

Income Elasticity of Demand Ei%\ Change in Quantity Demanded%\ Change in Consumers Income

Percentages are calculated using the mid-point formula, i.e. by dividing the change in quantity by average of initial and final quantities, and change in income by the average of initial and final values of income. Therefore:

Income Elasticity of Demand - Ei = Qf - Qi ÷ Qf + Qi ÷ 2 ÷ If - Ii / If + Ii ÷2

Income Elasticity of Demand - Ei = % Change in Quantity Demanded ÷ % change in consumer Income

<em>Where:</em>

Qf - is the final initial quantities demanded of the product,

Qi - is initial quantities demanded of the product,

If - is the final incomes of consumer

Ii - is the initial incomes of consumer.

∴

Question

What is her income elasticity of demand for thingamabobs?

Solution:

From the Problem, it can be deduced that -

Qf - assume it to be 60 since it is not given

Qi - assume it to be 50 thingamabobs?

If - assume it to be 40% since it is not given

Ii - 30%

Assume the % increase in Income to be

∴

Ei = 60 -50/ 60 + 50 ÷ 2 ÷ 40 - 30 / 40 + 30 ÷ 2

Ei = 10/110 /2 ÷ 10/70 ÷ 2

Ei = 10/11 X 70/10 ÷ 2

Ei = 10/55 x 14

Ei = 28/11 = 0.73%

Therefore the Income elasticity of demand for Adrina is 0.73 %

5 0

3 years ago

If the demand for a good is estimated to be _____, then firms producing the good will experience an increase in total revenue if

m_a_m_a [10]

Answer: elastic

Explanation:

Elastic demand is a demand that occurs when the quantity demanded for a product or service results in a greater percentage change when there is a change in price.

For example, when there's a fall in price, this will lead to large change in quantity demanded for the good. Since there's an increase in the quantity demanded, it will lead to increase in revenue.

7 0

3 years ago

A production function is a relationship between:____.a. inputs and profit. b. inputs and quantity of output. c. inputs and reven

Dahasolnce [82]

Answer:

b. inputs and quantity of output

Explanation:

A production function is a relationship between inputs and the quantity of output. In other words, it is the entire production process that goes into creating a product. This includes the specific materials that need to be inputted into the process in order for the output to be exactly as needed in order for the product to come out as desired and the right quantity. Thus, creating a relationship between input and output

4 0

3 years ago

Formula for average inventory

morpeh [17]

The average of inventory is the average amount of inventory available in stock for a specific period.

To calculate the average of inventory, take the current period inventory balance and add it to the prior period inventory balance. Divide the total by two to get the average inventory amount.

6 0

3 years ago

faust18 [17]

Answer:

false cause people they alr on the stock market

6 0

3 years ago