All categories

2 years ago

Income elasticity measures the:____.

Business

1 answer:

larisa [96]2 years ago

8 0

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

You might be interested in

The Weston Corporation is analyzing projects A, B, and C as possible investment opportunities. Each of these projects has a usef

melamori03 [73]

Answer:

Explanation:

8 0

2 years ago

During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $6 per

kupik [55]

Answer:

$192,000

Explanation:

Calculation for What is the value of ending inventory under variable costing

Using this formula

Value of ending inventory =[(Direct materials+Direct labor+Variable overhead+(Fixed overhead/Units produced)×Ending units in inventory]

Let plug in the formula

Value of ending inventory=[($6+ $4+ $5 + ($234,000/26,000 units) ×8,000 units]

Value of ending inventory= ($15 units+$9 units)×8,000 units

Value of ending inventory=$24 per units×8,000 units

Value of ending inventory = $192,000

Therefore the value of ending inventory under variable costing will be $192,000

8 0

2 years ago

Johnson Corporation unadjusted trial balance at year-end include the following accounts. Compute the uncollectible account expen

Alborosie

Answer:

Explanation:

The journal entries are shown below:

A. Uncollectible Expense A/c Dr $11,520

To Allowance for doubtful accounts A/c $11,520

(Being the uncollectible expense is recorded)

The computation is shown below:

= $1,152,000 × 1%

= $11,520

B. Uncollectible Expense A/c Dr $12,960

To Allowance for doubtful accounts A/c $12,960

(Being the uncollectible expense is recorded)

The computation is shown below:

= $1,152,000 × 1.5% × 75%

= $12,960

C. Uncollectible Expense A/c Dr $9,816

To Allowance for doubtful accounts A/c $9,816

(Being the uncollectible expense is recorded)

The computation is shown below:

= $12,000 - $2,184

= $9,816

5 0

2 years ago

What are the requirements for something to be used as money?

Anastasy [175]

For it to have international value

7 0

2 years ago

A disadvantage of feedback is that: Group of answer choices it makes the control process inefficient. most people are too sensit

julsineya [31]

Answer: It always comes after the fact.

Explanation:

Feedback is very important for a company. It helps them know where they need to improve on so that they can offer better services ti customers. It also fosters good relations with customers as they will feel their input is taken into account.

Unfortunately though the whole premise of Feedback is that it's based on information of an event that has already happened and SOMETIMES CANNOT BE CHANGED. This is a very huge drawback but one that is implicit in the process itself.

6 0

3 years ago