Answer:
C. Responsiveness of quantity demanded to a percentage change in income.
Explanation:
Income elasticity is defined as the responsiveness of the quantity of a good demanded by an individual as his income changes, all other factors being constant.
Mathematically it is calculated as percentage change in quantity demanded divided by percentage change in income.
Income elasticity is used to find out if a good is a necessity or a luxury good.
The demand for goods that are a necessity does not change with a change in income.
However demand for a luxury good increases as income increases and vice versa
Answer:
d. Group Norm
Explanation:
Group Norms are informal rules that generally discourage behaviors that impede the efficacy of a group and and encourage the group to work efficiently.
They are regulations that groups adopt that ensure some form of order and they are also a reflection of the expectation of members of the group should interact and work.
Here, agreeing that members of the group will only discuss group-related matters at 1pm on Wednesdays is an example of a Group Norm because;
1. It is an unwritten rule
2. It is majorly to ensure that order is maintained so that the purpose of the group remains undefeated.
Answer:
Cost of equity = 10.7%
Explanation:
<em>According to the dividend valuation, the value of a stock is the present value of expected future dividends discounted at the required rate of return.</em>
<em>The model can me modified to determined the cost of equity as follows:</em>
Cost of equity = D/P + g
d- dividend payable next period, p- price of stock ,, - g- growth rate
D- 4.5%, p- $2.48 , g -4.5%
Cost of equity = (2.48 /39.85) + 0.045
= 10.7%
Answer:
$300 debit balance
Explanation:
In business debit entries mean that the money is being added to the account, while credit entries means that the money is owed and is therefore being deducted from the account. Therefore, in this scenario the cash account has a $300 debit balance. This is because the credit entries are being subtracted from the debit entries (assuming that the account had a $0 initial balance). If we do the math we are left with $300 of debit.
$900 - $600 = $300