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3 years ago

) A price change would have the largest income effect on a A) magazine. B) tablet computer. C) piece of clothing. D) car.

Business

1 answer:

weeeeeb [17]3 years ago

7 0

Answer:

Explanation:

A change in price leads to two effects :

The income effect
The substitution effect

The income effect is the change in quantity demanded as a result of a change in real income which affects the consumes purchasing power.

A car constitutes a very large part of a consumers expenditure due to its cost. Thus, the income effect for a car would be the largest

The substitution effect is the change in demand as a result of change in the price of the good compared to the price of another substitute good.

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Year cash flow 0 –$ 32,500 1 14,300 2 17,400 3 11,700 required: what is the irr of the above set of cash flows?

valina [46]

IRR = 15.76% i got that as my answer

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4 years ago

myrzilka [38]

Answer:

The economic cost for Debbie is 6,200 after considering the implicit cost.

Explanation:

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3 years ago

Which example envolves a real world restriction that can affect your decision making process?

lbvjy [14]

I think the answer is family disputes

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3 years ago

A man works for a marketing firm that has just landed a contract with Run-of-the-Mills to help them promote three of their produ

Lelu [443]

Answer and Explanation:

According to the given situation, when the amount of splishy splashies decrease by 5%, quantity of frizzles increases by 4%.

So, The cross price elasticity of frizzles relative to splishy splashies = Percentage change in quantity demand for frizzles ÷ Percentage change in price for splishy splashies

= 4 ÷ -5

= -0.80

Now,

Cross-price elasticity between splishy splashies and kipples = Percentage change in quantity demand for Kipples ÷ Percentage change in price for splishy splashies

= -6% ÷ -5%

= 1.20

b. Since there is negative cross-price elasticity between splishy splashies and frizzles, these products are complementary.

The elasticity of the cross-price between splendid splashies and kipples is positive, these goods being substitutes.

c. Here, I would therefore recommend Raskels marketing, since these two are used together.

The required Table are as shown below:-

Particulars Cross-Price Elasticity Complements Recommended

of Demand or Substitute Marketing with

splishy splashies

Frizzles 0.80 Complements Yes

Kipples 1.20 Substitute No

8 0

3 years ago

Victor is a single taxpayer in the 24% marginal tax bracket. In 2019, he sold stock shares for a long-term capital gain of $8,50

arsen [322]

Answer:

1. He has a net taxable long-term capital gain for the year of 2019

2. The net taxable long-term capital gain is $ 21.500

3. He will pay $5,160 in taxes as a result of these transactions

Explanation:

1. According to the given data we can conclude that he has a Net taxable long term capital Gain

2. In order to calculate the the net taxable long-term capital gain (or loss) we would have to make the following calculations:

ITEMS GAIN / LOSS

long term capital gain $8,500

long term capital loss ($2,000)

amount adjusted $6,500

long term capital gain as house sold after 3 years $15,000

Net capital long term capital gain $21,500

Overall, long term gain as loss is adjusted and the long term capital gain is $21,500

3. Tax impact on the Net capital long term capital gain $21,500 is at the rate of 24% marginal tax bracket is $5,160 which is determined as ($21,500 x 24%)

Therefore, He will pay $5,160 in taxes as a result of these transactions

3 0

3 years ago