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.
Answer:
American bakeries will win
Explanation:
In the given case the American bakeries will win.
It is given in the question that the contract between the American Bakeries and the Empire is a requirement contract.
The requirement contract not necessarily means that the two parties will have the trade.
Therefore,
The American Bakeries does not require any purchase from the Empire
These contextual elements needed to be aligned with the target markets.
<h3>What is a website design? What are the elements of it?</h3>
Website design is a process of planning, organizing, capturing and conceptualizing the content online in an attractive manner.
The main elements of the website design are the design, interaction, visibility, content etc.
A good website design consist the excellent visual design.
Learn more about the website design here:-
brainly.com/question/13479505
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Answer: D. the procyclical behavior of labor productivity occurs due to firms' labor hoarding practices.
Explanation:
Keynesian Economists argue that firms practice labor hoarding which is the practice of keeping workers when they should not such as when there is a Recession. They should not keep these workers because demand has slowed so keeping them means that they will not be producing to meet the demand.
The procyclical behavior of labor productivity means that labor productivity goes by the Business Cycle in that it is high when the Economy is booming and low when it is in a Recession.
Productivity is calculated by dividing goods produced by the number of labor producing them.
By refusing to fire workers during a Recession, there will be too many workers producing too few goods which will decrease labor productivity which is why according to Keynesian Economists, the productivity is low in Recessions.
