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Nastasia [14]
2 years ago
14

Sebastian received a raise this year so his income climbed from $45,000 to $52,000. Last year Sebastian purchased 2 sunglasses.

This year he has purchased 7 sunglasses. Assuming that all of the other things remain constant, what type of a good are sunglasses and what type of income elasticity of demand does Sebastian have
Business
1 answer:
sveticcg [70]2 years ago
5 0

Answer:

normal good

elastic demand

Explanation:

Income elasticity of demand measures the responsiveness of quantity demanded to changes in income.

Income elasticity = percentage change in quantity demanded / percentage change in income

percentage change in quantity demanded = (7/2) - 1 = 250%

percentage change in income = (52,000 / 45,000) - 1 = 15.6%

250 / 15.6 =  16.07

If the absolute value of income elasticity of demand is greater than one, it means demand is elastic.

Normal goods are goods that are goods whose demand increases when income increases and falls when income falls

Inferior goods are goods whose demand falls when income rises and increases when income falls.

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3 0
1 year ago
why was slavery more successful than other labor systems in meeting the labor needs of the colonial america market economy
kogti [31]

Answer:

Cheap & effective

Explanation:

this source of labor was easily abusable and by having people you don't need to pay and spend barely anything on feeding them it makes it easier to build the USA. I don't agree with the USA being founded on this but other countries were doing this so the USA did it also.

8 0
3 years ago
Browning's has a debt-equity ratio of .47. what is the equity multiplier?
jek_recluse [69]

A. 1.47

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4 0
2 years ago
When an individual goes to a supermarket and selects a box of cereal from several choices of type, brand, and size, it is an exa
Sidana [21]

Intermediaries are often known as individuals who are known to be a link in the distribution process. They connect the various channel partners.

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There are four types of intermediary. They are

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6 0
3 years ago
The difference between scenario analysis and sensitivity analysis is that:__________
Sergeu [11.5K]

Answer:

C) scenario analysis considers the effect on NPV of changing multiple project parameters.

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Scenario analysis is used to determine the effect on the end result if several parameters are changed . Sensitivity analysis on the other hand involves the effect on the end result due to change in one parameter. With regard to net present value, the scenario analysis on the project will based on effects of changing multiple parameters for example how NPV will change due to increase in price of the products sold, changes in inflation rate and changes in corporate taxes.

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