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pychu [463]
3 years ago
6

Suppose income increases by 25 percent​ and, as a​ result, the quantity of a particular brand of automobile demanded​ (holding t

he price for this particular automobile​ constant) increases by 49 percent
The income elasticity of demand for this brand of car is ____​(Enter your response rounded to two decimal places and include a minus sign if​ appropriate.)

This particular brand of automobile is​ a(n) _____ good

In another​ example, suppose market research shows that a particular brand of truck is a normal good and a luxury.

If​ so, then the income elasticity of demand for this truck is:
1. Less than 1 but greater than 0
2. Negative
3. Greater than 1
4. Positive
5. Zero
Business
1 answer:
arsen [322]3 years ago
8 0

Answer:

(a) <u><em>normal</em></u>

<em>1.</em><u><em> Less than 1 but greater than 0 </em></u>

Explanation:

<em>Estimating demand elasticity of income is the percentage change in demand quantity divided by a percentage change in income.  </em>

Therefore, for a normal good, its demand's income elasticity would be positive.

In this scenario the demand income elasticity is <em>1/25 = 0.4. </em>

So here the truck is indeed a normal good because the value is positive.

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Answer:

The price elasticity of demand is -5

Explanation:

Elasticity of demand measure the responsiveness of demand against the change in price of the product. It shows how much demand changes if there is the change in price.

Using mid point method

Change in Demand = $20 - $25

Change in Demand = -$5

Change in price  = $5 - $4

Change in price  = $1

As we know

Elasticity of Demand = Change in demand / Change in price

Elasticity of Demand = -$5 / $1

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Explanation:

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There can be a close and direct relationship with the employer, therefore making it easy to get permission when in need of time off.

You are saved the hassle of paying Pay As You Earn tax.

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Odd working hours.

No pension, insurance or health insurance scheme.

Summary dismissals.

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Explanation:

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With the help of Smart Display campaign reporting, Emmy can reach to the larger number of customers even with a very less cost which is not possible with the traditional marketing campaigns. Emmy can get Google Ads reporting as well which can help her in better planning for the future campaigns, moreover giving her much deeper insights that will permit her to plan on a broader perspective like strategic management while saving the time. She can get a better and bigger picture in this case.

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