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4 years ago

If a decrease in income increases the demand for a good. True or False

Business

1 answer:

Masja [62]4 years ago

3 0

Answer:

If a decrease in income increase the demand for a good , the good is an inferior good.

An inferior good is a good whose demand falls when income rises and rises when income falls.

Inferior goods have an indirect relationship with income

A normal good is a good whose demand rises when income increases and falls when income falls.

Normal goods have a direct relationship with income.

A substitute good is a good that can be used in place of another good. For example if good A and B are substitutes, if the price of good A increases, it would become more expensive for consumers and consumers would shift to consuming good B. As a result the demand for good B would rise and the quantity demanded of good A would fall.

Complements are goods that are used together. If the price of one of the goods increases, the demand for the other good falls and vice versa.

For example, gasoline and car are complements. If the price of cars fall, people would increase their demand for cars and as result the demand for gasoline would increase.

I hope my answer helps you

Explanation:

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The top management of Myers Corp are planning a reorganization of their company to cut costs and increase efficiency. The differ

melamori03 [73]

Answer:

C. substitutes

Explanation:

This scenario reflects the operation of substitutes in replacing the support and ability offered by leaders

6 0

3 years ago

At the time of Elise’s 20 year high school reunion she was earning $50,000 and the CPI was 80. Now that it is time for her to at

babunello [35]

Answer:

Her real income has decrease by $7,333.33

Explanation:

<em>Real income is the amount of goods and services that a give amount of quantity money can purchase. It is also known as the purchasing power of money. </em>

To determine if there has been a change in her real income, we will compare her real income 20 years ago to her real income 5 years later. This will be done as follows;

Step 1

Determine her real income 5 years after her last reunion

Real income in current year = (CPI in base year/CPI in current year ) × Nominal income

= (80/150)× 80,000

= $42,666.67

Step 2

Determine change in real income

Her real income has decrease by $7,333.33. This is difference between her real income 5 years ago and now. That is $50,000 - $42,666.67.

Tis implies she cannot purchase as much as she could 5 years ago because of inflation.

3 0

3 years ago

Pauley Company needs to determine a markup for a new product. Pauley expects to sell 15,000 units and wants a target profit of $

gulaghasi [49]

Answer:

81%

Explanation:

Calculation for the markup percentage to variable cost that should be used

Using this formula

Markup percentage=[(Target profit + Fixed overhead costs + Fixed administrative costs) / Total variable costs

Let plug in the formula

Markup percentage=[($22*15,000 units)+$13,500+$21,000]/$30×15,000)

Markup percentage=($330,000+$13,500+$21,000)/$450,000

Markup percentage=$364,500/$450,000

Markup percentage=0.81*100

Markup percentage=81%

Calculation for Total variable costs

Variable product cost per unit $19

Variable administrative cost per unit $11

Total variable costs =$30

Therefore the markup percentage to variable cost that should be used will be 81%

8 0

4 years ago

A company has total accounts receivable of $500,000 for the year and it estimates that uncollectible accounts will be 3% of acco

antiseptic1488 [7]

Answer:

Option (d) is correct.

Explanation:

Given that,

Total accounts receivable = $500,000

Credit balance of Allowance for Doubtful Accounts = $2,000

Estimates uncollectible accounts:

= 3% of accounts receivable

= 0.03 × $500,000

= $15,000

The closing balance after adjustment is the latest estimates:

= 3% of accounts receivable

= $15,000

$15,000 includes both the opening credit balance of allowance for doubtful accounts worth of $2,000 and the current year adjustment of $13,000.

6 0

4 years ago

Which one of the following statements concerning stock exchanges is correct? Multiple Choice

Inga [223]

Some large companies are listed on NASDAQ. NASDAQ (originally an acronym for National Association of Securities Dealers Automated Quotations

Explanation:

NASDAQ® is a publicly traded company that runs the premier electronic stock market in the U.S.The NASDAQ is known as a tech-heavy exchange. Companies trading on the NASDAQ are usually more growth-oriented. Of course, there are exceptions on both sides. independent compensation committee and independent nominating committee is not required in NASDAQ. companies have the option of executive compensation and nominating decisions made by a majority of independent directors.

It has an electronic billboard in Times Square, which lists its companies and their products. In today’s tech-savvy world, many companies see listing on the NASDAQ as a logical option considering the cost savings.

6 0

3 years ago