Answer:
Buy 7% less houses
Explanation:
Income elasticity of demand measures the responsiveness of quantity demanded to changes in income
Income elasticity of demand = percentage change in quantity demanded/ percentage change in income
1.40 = percentage change in quantity demanded/ 5%
Percentage change in quantity demanded = 1.4 × 5% = 7%
Because the coefficient of elasticity is greater than one, it means demand is income elastic. This means quantity demanded is responsive to changes in income. A fall in income would reduce the quantity demanded.
I hope my answer helps you
Answer:
$7,500
Explanation:
Lee, Inc. acquired 30% of Polk Corp.'s voting stock on January 1, Year 1 for $100,000.
During Year 1, Polk earned $40,000 and paid dividends of $25,000.
Therefore Lee's dividend income = 0.3 x 25,000 = $7,500
Before income taxes, the amount that Lee should include in its Year 1 Income Statement as a result of the investment will be the dividend earned in year 1 which is $7,500
Answer:
It is vital that every fun related environment like the one discussed in the text have an emergency team that handles such cases.
Below are a few steps that I would take to ensure the safety of my guests:
- <em>Diligently Mark out Restricted Areas:</em><em> This is the first step towards establishing a safe environment for guests.</em>
- <em>Ensure the availability of enough Key Staff Members.</em>
- Designate a staff to properly manage ticketing so as to curtail financial losses
- <em>A Lightning Alert System must be installed in the case of emergencies.
</em>
- <em>There must be a standby emergency medical unit just in case of sudden injuries, mechanical/technical error, and other health emergencies that may be life threatening.
</em>
- <em>There has to be a team carefully looking out for the guests.</em>
- <em>Ensure that restricted areas. signs are clearly shown and also put a staff in those sections to curtail any truant behavior by guests.</em>
<em />
<em>No additional costs should be added. The cost of a ticket should cover for all fun and health privileges. Additional costs may lead to a drastic reduction in customer base. The ticket cost should cover for everything.</em>
Answer:
A) change in the cost of eating index = <u>20% increase</u>
B) Suppose that consumers are completely indifferent between two chickens and one ham. For this example, how large is the substitution bias in the official "cost-of-eating" index?
The <u>INCREASE</u> in the cost-of-eating index is <u>18</u> %.
The <u>OVERESTIMATE</u> of inflation in the cost of eating reflects substitution bias.
Explanation:
2015
product units unit cost total
chickens 30 $4 $120
hams 10 $5 $50
<u>steaks 10 $8 $80</u>
total $250
2016
product units unit cost total
chickens 30 $5 $150
hams 10 $7 $70
<u>steaks 10 $8 $80</u>
total $300
A) ($300 - $250) / $250 = 20%
B)
if consumers are indifferent for 2 chickens per 1 ham, then the new basket should be assuming consumers will purchase the cheapest option:
2016
product units unit cost total
hams 25 $7 $175
<u>steaks 10 $8 $80</u>
total $255
the increase in inflation would have been = ($255 - $250) / $250 = 2%
the substitution bias = reported inflation - real inflation = 20% - 2% = 18%
Answer:
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