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inessss [21]
3 years ago
6

The change in consumption of a good that results from the implicit change in income, which has been caused by a price change, is

called __________.
Business
1 answer:
lapo4ka [179]3 years ago
4 0

Answer:

It's called a Normal Good

Explanation:

Normal Goods are a type of goods whose demand shows direct relations with a consumer's income. The consumption of a normal good increases with the increase of a consumer's income, if the income decreases the consumption decreases.

Normal goods have a positive income elasticity of demand.  Income elasticity of demand measures the magnitude with which the quantity demanded for a good changes in reaction to a change in income. A normal good has an income elasticity positive, but minor to one.

In this case, if the price of a good increases, the income of the consumer decreases, therefore it consumes fewer quantities of the product. An example of a normal good is Organic food.

An inferior good has an income elasticity of demand negative, meaning that if the income increases, the consumption decreases. An example of an inferior good is margarine if the income increases, consumers will start buying a superior product like butter.

A Luxury good presents an income elasticity of demand superior to one. The consumption of a luxury product increases more than proportional to the increase in income. An example of a luxury good is luxury cars.

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Suppose that an economy produces 2,400 units of output, employing 60 units of input, and the price of the input is $30 per unit.
Vinil7 [7]

an economy produces 2,400 units of output, employing 60 units of input, and the price of the input is $30 per unit. the level of productivity in this economy is 40

<h3>What is productivity?</h3>
  • It is possible to study patterns in salary growth, wage levels, and technical advancement by further segmenting labor productivity.
  • Productivity increase is directly related to corporate earnings and shareholder returns.
  • Productivity is a measure of a company's production process efficiency at the corporate level.
  • It is calculated by comparing the number of units produced to employee labor hours or by comparing the company's net sales to employee labor hours.
  • Productivity is calculated as a company's output divided by the units utilized to produce that output.
  • In the workplace, productivity simply refers to how much "work" is completed in a given amount of time.

To learn more about productivity with the given link

brainly.com/question/23987161

#SPJ4

8 0
2 years ago
Custom Cars purchased some $39,000 of fixed assets two years ago that are classified as 5-year MACRS property. The MACRS rates a
Irina18 [472]

Answer:

$18,904.80

Explanation:

Calculation for what will be the aftertax cash flow from the sales

First step is to calculate the Accumulated Depreciation

Accumulated Depreciation = (0.2 + 0.32)*39,000 Accumulated Depreciation= 0.52*39,000

Accumulated Depreciation = $20,280

Second Step is to calculate the Book Value using this formula

Book Value = Initial Cost –Accumulated Depreciation

Let plug in the formula

Book Value = $39,000 - $20,280

Book Value = $18,720

Third step is to calculate the profit using this formula

Profit = Sales value–Book Value

Profit= $19,000 - $18,720

Profit = $280

Fourth Step is to calculate the taxes

Taxes = 0.34*280

Taxes = $95.20

Last step is to calculate the aftertax cash flow from the sale using this formula

Aftertax cash flow from the sale=Assets sold today-Taxes

Let plug in the formula

Aftertax cash flow from the sale= 19,000 - $58.80

Aftertax cash flow from the sale= $18,904.80

Therefore the Aftertax cash flow from the sale will be $18,904.80

3 0
3 years ago
What type of life insurance has cash value
alisha [4.7K]
Whole life policies provide “guaranteed” cash value accounts that grow according to a formula the insurance company determines. Universal life policies accumulate cash value based on current interest rates. Variable life policies invest funds in subaccounts, which operate like mutual funds.
7 0
3 years ago
What decisions does the business cycle help businesses make? check all that apply
Tasya [4]
<span>the answers is 2,4,5,6</span>
7 0
3 years ago
Junkman Autos uses a separate checking account to pay their employees. The gross pay for the period was $1,000. However, after d
STALIN [3.7K]

Answer:

journal entry are given below

Explanation:

given data

gross pay for the period = $1,000

net pay for the period =  $820

to find out

journal entry to record the issuance of payroll checks

solution

journal entry are as

Account Name                       Debit                      Credit

Labor Expenses                        $1000

payroll taxes Payable                                                  $820

Net Payroll Payable                                                     $180

( $1000 - $820 )

6 0
3 years ago
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