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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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First, find if a country's RGDP grows on average at 3% per year, how long will it take for this country to double its RGDP. If,
sasho [114]

Answer:

At the growth rate of 3% per year

Number of years taken to double the GDP = 23.33 years

The the GDP will double ( 23.33 - 20 ) 3.33 years earlier at 3.5% growth rate

Explanation:

According to the rule of 70

Number of years taken to double the GDP = 70 ÷ [ Growth rate ]

Thus,

At the growth rate of 3% per year

Number of years taken to double the GDP = 70 ÷ 3

= 23.33 years

Further

if the growth rate is 3.5% per year

Number of years taken to double the GDP = 70 ÷ 3.5

= 20 years

Hence,

The the GDP will double ( 23.33 - 20 ) 3.33 years earlier at 3.5% growth rate

6 0
3 years ago
Bellucci Corporation has provided the following information: Cost per UnitCost per Period Direct materials$6.70 Direct labor$3.5
Nikolay [14]

Answer:

The incremental manufacturing cost that the company will incur if it increases production from 10,500 to 10,501 units is closest to $11.40

Explanation:

It is important to note that the question requires The incremental manufacturing cost that the company will incur if it increases production from 10,500 to 10,501 units

From Production of 10500 units to 10501 units, there is an increment of 1 unit.

<u>Lets find the incremental cost of 1 unit.</u>

1.To do this we only consider variable manufacturing costs only.

2.Since increase is within the relevant range, the fixed manufacturing overheads do not change.

3.Also Ignore all non- manufacturing overhead as they do not form part of manufacturing costs.

                                                         Extra 1 Unit

Direct materials                                    $6.70

Direct labor                                           $3.50

Variable manufacturing overhead     $1.20

Total Cost                                             $11.40

4 0
4 years ago
Managers that must analyze data from 500 hotels to determine when to discount rooms based on occupancy patterns would be placed
andrey2020 [161]

Answer:A. Manager's need to analyze large amounts of information.

Explanation: One of the major roles and responsibilities of managers is the analysis of data and information before making any decisions. All managers must be effective and efficient in data analysis or in the analysis of Information in order to effectively perform and conduct the business of Management adequately.

Data analysis is a strategic need of management and it mainly sometimes involves large amount of information or data.

5 0
3 years ago
Read 2 more answers
How much does a plumber charge to replace a toilet?.
timurjin [86]
Toilet installation costs range from $224 to $531, with the national average at $372. Plumbers can charge anywhere from $65 to $250 per hour for labor costs.
4 0
2 years ago
You are offered a chance to buy (cash outflow) an asset for $200,000 that is expected to produce cash inflows of $100,000 at the
madreJ [45]

Answer:

15.65%

Explanation:

The computation of the internal rate of return is shown below:

Given that

Years        Cash outflow/ cash inflow

0                 -$200,000

1                   $100,000

2                 $77,000

3                  $52,000

4                 $40,000

The formula is

= IRR()

AFter applying the above formula, the internal rate of return is 15.65%

7 0
2 years ago
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