Which of the following would be considered the output?

In words, what does it mean when an economic consultant states:" kevin's income elasticity of red wine is equal to 6?

Lady_Fox [76]

When an economist says that "Kevin's income elasticity of red wine is 6" he means that if Kevin's income increases by 10%, the quantity of red wine demanded by Kevin rises by 60%. So, red wine is income elastic. Since the income elasticity is greater than 1, red wine is a luxury good for Kevin.

Income elasticity measures the change in the quantity of goods demanded relative to a change in income.

If an increase in income results in a decrease in the quantity of goods demanded, then that good is an inferior or cheap good. The income elasticity of a cheap good is negative.

If the demand for a good rises with an increase in income, then that good is a normal good. The income elasticity of normal goods is greater than zero.

If an increase in income results in a greater increase in the quantity of goods demanded, then that good is a luxury good. The income elasticity of a luxury good is greater than 1.

6 0

3 years ago

What can you determine about the corporate culture from the fact that they waited this long to consider the development of an EP

stepan [7]

Answer:

That the company has a dysfunctionall organizational culture

Explanation:

Dysfunction in organizational culture occurs when the existing culture of an organization no longer advances the organization's effectiveness in the marketplace.

In this case technology innovation is affected by the delay on the addoption of a EPM as Technology in business allows organizations to improve both the performance and overall effectiveness of products, systems and services, which, in turn, enables businesses to expand quickly and efficiently.

3 0

3 years ago

Southern Home Cooking just paid its annual dividend of $.75 a share. The stock has a market price of $16.80 and a beta of 1.14.

SIZIF [17.4K]

Answer:

The multiple choices are:

9.98 percent

10.04 percent

10.79 percent

10.37 percent

10.45 percent

The third option of 10.79% is correct

Explanation:

The cost of equity according to Miller and Modgiliani capital asset pricing model is given below:

Ke=Rf+beta*(Mrp-Rf)

Rf is the risk free rate which is the return on government security is 2.7%

beta is 1.14

Mrp is the market risk premium is 7.1% which is given in the formula as (Mrp-Rf)

Ke=2.7%+1.14*7.1%

Ke=2.7%+8.09%

Ke=10.79%

Hence the correct option out of the options given above is the third option

It is expected that any shareholder that invests in the shares of Southern Home Cooking would get return of 10.79%

8 0

3 years ago

Skylar is a very organized and timely individual. He always shows up for meetings 15 minutes early. He frowns upon colleagues wh

Doss [256]

Answer:

Skylar is a very organized and timely individual. He always shows up for meetings 15 minutes early. His orientation towards Time is Monochronic

Explanation:

Monochronic time orientation refers to the cultures that set their tasks to a clock within a particular time zone.

This culture exalts punctuality and single focus in a given time frame.

Promptness in time delivery and allotment of time for schedule is the norm here.

In monochronic cultures people will be more inclined to start and end a meeting on the scheduled time then attend to the next task according to the time book.

7 0

3 years ago

Read 2 more answers

Venus Company sold goods, with a selling price of $ 14,221, for cash. The state sales tax rate is 8%. What amount is credited

Verdich [7]

Answer:

$ 14,221

Explanation:

Data provided in the question :

Selling price of the good = $ 14,221

State sales tax rate = 8 %

now,

the sales tax on the goods sold = 8% of $ 14,221

or

the sales tax on the goods sold = 0.08 × $ 14,221 = $ 1,137.68

therefore,

The total cash received = Selling price + sales tax on the

or

The total cash received = $ 14,221 + $ 1,137.68 = $ 15,358.68

now the received tax goes to the state i.e $ 1,137.68

Therefore,

the net sales revenue credited to the account

= total cash received - sales tax on the goods sold

or

the net sales revenue credited to the account = $ 15,358.68 - $ 1,137.68

or

the net sales revenue credited to the account = $ 14,221

3 0

3 years ago