Answer:
The 8.1 percent increase is probably an example of inflation.
Explanation:
Inflation is referred to as an economic situation where there is a sustained increase in the general price level of goods and services in an economy over a period of time. Inflation reduces the purchasing power of each unit of currency where a unit of currency buys less than it did in prior periods. This leads to increases in the prices of goods and services over time.
The increase in cost of lumber, metal, and labor raised the average price of construction by 8.1 percent in 2005. This is probably an example of inflation.
Both the Basic and Moderate policy will cover the full cost for the total damage to the car as the 2 coverage limit is more than the loss payable.
<h3>What is coverage limit?</h3>
The coverage limit means the maximum amount that a policy can pay for a loss that occurred in relation to the vehicle insured,
<u>Data given</u>
Total loss amount = $1,500
Basic coverage limit = $15,000
Moderate coverage limit = $25,000
In conclusion, the Basic and Moderate policy will cover the full cost for the total damage to the car as the 2 coverage limit is more than the loss payable.
Read more about coverage limit
<em>brainly.com/question/26045768</em>
Answer:
New expected operatimg income is $ 45,000
Explanation:
Degree of Operating leverage =<u> %change in operating income</u>
% change in sales
2.5 =<u> % change in operating income</u>
20%
2.5 × 0.2 = % change in operating income
0.5 or 50% = % change in operating income
50% =<u> x-30,000</u>
30,000
0.5× 30,000 = x- 30,000
15,000 + 30,000 = x
$45000 = x
which class?
Explanation:
plz mention the lesson name kk
Answer:
A) buyers of gasoline bear a higher burden of the $2 tax than buyers of paperback novels.
Explanation:
The flatter the demand curve, the more elastic. In this case, D2, the demand curve for gasoline is more steeper which means it is more inelastic. Also, S2, the supply curve for gasoline is extremely elastic since it is almost horizontal.
When a tax is imposed on a good, the largest burden will fall on the side (suppliers or consumers) whose demand or supply curve is more inelastic. When a curve is inelastic, it means that a 1% price change will affect the quantity demanded in a smaller proportion.