Answer: d. No, because EVPI is $25, which is less than the consultant's fee of $30
Explanation:
The expected value with the consultant's input is $200 and the expected value without it is $175.
The difference of $25 is the maximum that the consultant should be paid because anything larger than this would result in an opportunity loss because if the consultant is paid $30, the net return earned will be $170 which is $5 lower than what would have been earned without her input.
The $30 is simply not worth it.
Answer:
The income elasticity of demand for frozen dinners is negative when there is an increase of hourly wages. -51%
Explanation:
When the income elasticity is negative it means that the good is inferior so when the income is increased, the demand of the good decrease beacuse its demand change to a better quality good. For instance in this case a fresh meal.
income elasticity % = % change in quantity / % change in income
(((3350-3550)/3550)/((20-18)/18))*100
Answer:
Yes, that is very <em>true.</em>
<em>I hope this helped at all.</em>
