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lakkis [162]
3 years ago
5

Assume that a 4 percent decrease in income results in a 6 percent increase in the quantity demanded of a good. The income elasti

city of demand for the good is a. negative, and the good is an inferior good. b. positive, and the good is an inferior good. c. positive, and the good is a normal good. d. negative, and the good is a normal good.
Business
2 answers:
Naddik [55]3 years ago
7 0

Answer:

The correct answer is "a. negative, and the good is an inferior good.".

Explanation:

Drupady [299]3 years ago
3 0

Answer: The correct answer is "a. negative, and the good is an inferior good.".

Explanation: Assuming that a 4 percent decrease in income results in a 6 percent increase in the quantity demanded of a good, the income elasticity of demand for the good is negative because the good is an inferior good.

Inferior goods are those material elements that are related to the consumption of people who have lower incomes and who cover their basic needs.

Its income elasticity coefficient is negative. Therefore, when the consumer's income increases, the demand for these goods decreases because the consumer can choose other higher quality products..

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Outback Corp. recorded sales of $1,300,000 in 2010, in addition the company's accounts receivable balance grew from $120,000 at
klemol [59]

Answer:

$1,255,000

Explanation:

The increase in accounts receivable is the portion of the current year sales revenue that has not been received in cash, hence, the cash collected from customers in the year 2010 is simply the sales adjusted for the impact of accounts receivable as shown below:

cash collection=sales revenue+beginning accounts receivable-ending accounts receivable

sales revenue=$1,300,000

beginning accounts receivable=$120,000

closing accounts receivable=$165,000

cash collection=$1,300,000+$120,000-$165,000

cash collection=$1,255,000

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