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Vika [28.1K]
3 years ago
5

A consumer's weekly income is $300, and the consumer buys 5 bars of chocolate per week. When income increases to $330, the consu

mer buys 6 bars per week. The income elasticity of demand for chocolate by this consumer is about__________.
Business
1 answer:
EastWind [94]3 years ago
7 0

Answer:

The income elasticity of demand for chocolate by this consumer is about 1.90

Explanation:

the change in quantity = (6 - 5)/(6 + 5)

                                      = 0.091

the change in income = (330 - 300)/(330 + 300)

                                     = 0.048

the income elasticity = 0.091/0.048

                                   = 1.90

Therefore, The income elasticity of demand for chocolate by this consumer is about 1.90

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Which of the following terms is most closely associated with the statement: "attributes or benefits consumers strongly associate
kozerog [31]

Answer:

The answer is option B) Points-of-difference

Explanation:

The attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe that they could not find to the same extent with a competitive brand is Points of Difference.

As opposed to other options, points of difference emphasizes the Unique selling point (USP) of a product and service which sets them apart to be able to compete favorably in the market. Products with clear points of difference usually cost higher but sell even better than others in the same category.

For example, an iPhone with better memory, faster processing speed, good camera quality that is higher than others in the same category would be preferred by consumers and compete better in the market regardless of the cost.

3 0
3 years ago
Tasty Subs acquired a delivery truck on October 1, 2018, for $19,500. The company estimates a residual value of $2,100 and a six
dem82 [27]

Answer:

The question is calculating the depreciation expense using straight-line method for 2018 and 2019?

Depreciation expenses for 2018: $725;

Depreciation expenses for 2019: $2,900.

Explanation:

We have yearly depreciation expenses is calculated as:

Yearly Depreciation expense = (Original cost - Salvage value) / Useful life = (19,500 - 2,100) /6 = $2,900.

For 2019, depreciation expense is recorded for the full-year at $2,900.

For 2018, depreciation expense is recorded for only three months ( as delivery truck was bought on Oct 1st 2018), which is calculated as: Yearly Depreciation expense / 12 * 3 = $725.

So, the answer is:

Depreciation expenses for 2018: $725;

Depreciation expenses for 2019: $2,900.

3 0
3 years ago
The second stage of the consumer buying process is?
zubka84 [21]
Well i suppose the second stage involves the information search of the consumer buying process.<span />
3 0
3 years ago
You purchased a bond 69 days ago for $891.26. You received an interest payment of $24.00 56 days ago. Today the bond’s price is
inna [77]

Answer:

1.97%

Explanation:

The formula to calculate the holding period return is:

HPR=(Income generated+(ending value-initial value)/Initial value)*100

Income generated= $24

Ending value= $884.89

Initial value= $891.26

HPR=(24+(884.89-891.26)/891.26)*100

HPR=(24+(-6.37)/891.26)*100

HPR=(17.63/891.26)*100

HPR=0.0197*100

HPR= 1.97%

According to this, the holding period return (HPR) on the bond as of today is 1.97%.

4 0
3 years ago
g An accelerated depreciation method: Group of answer choices Results in reporting higher earnings every year. Depreciation an a
Vladimir79 [104]

Answer:

The correct answer is the third option: Recognizes more depreciation expense in the early years of an asset's useful life and less in the later years.

Explanation:

To begin with, the name of <em>"Accelerated Depreciation" </em>is refered to a method used in the accouting fields in order to determine how much of a permanent asset has been worn out by the time that has passed and to put that amount in the accounts of the company so that there is a record of the money that has been lost for those depreciations. Moreover, in difference with the traditional method, this one uses a process in where the depreciation will be higher in the early years of the asset while in the latest will be less depreciation.  

8 0
3 years ago
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