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almond37 [142]
3 years ago
5

If income increases by 10% and, in response, the quantity of housing demanded increases by 7%, then the income elasticity of dem

and for housing is A) -1. B) -0.7.
Business
1 answer:
Katen [24]3 years ago
4 0

Answer:

the income elasticity of demand is 0.7

Explanation:

The computation of the income elasticity of demand is shown below:

As we know that

Income elasticity of demand is

= Percentage change in quantity demanded ÷ Percentage change in income

= 7 ÷ 10

= 0.7

hence, the income elasticity of demand is 0.7

The same is relevant

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Brown Street Grocers has a cost of equity of 11.8 percent, a pre-tax cost of debt of 6.9 percent, and a tax rate of 35 percent.
Nastasia [14]

Answer:

The correct answer to the following question is option E) 9.06% .

Explanation:

Here the cost of equity given is  - 11.8%

Pre tax cost of debt- 6.9%

Tax rate- 35%

So the after tax cost of debt - 6.9% x 65%

= 4.485%

The debt to equity ratio - .6

So the weight of debt - .6 / ( 1 + .06 )

= .375

Weight of equity - 1 / ( 1 + .06 )

= .625

Weighted average cost of capital =

Debts cost x weight of debt + Equity cost x weight of equity

= 4.485 x .375 + 11.8 x .625

= 1.681875 + 7.735

= 9.06%

7 0
3 years ago
Exercise 4-15A Calculate net cash flows (LO4-7) Below are several transactions for Meyers Corporation for 2021. Issue common sto
Maru [420]

Answer:

$12,600

Explanation:

Particulars                                                              Amount

a. Issue common stock for cash                            $40,000

b. Purchase building and land with cash,            -$25,000

c. Provide services to customers on account       $6,000

d. Pay utilities on building                                      -$500

e. Collect $4,000 on account from customers     $4,000

f. Pay employee salaries                                        -$8,000

g. Pay dividends to stockholders                          -<u>$3,900</u>

   Net Cash Flow                                                    <u>$12,600</u>

7 0
3 years ago
Nicki paid $900 for a camera that she thought was worth $1100 for all the features included in it. for the consumer electronics
FinnZ [79.3K]

Consumer surplus is difference between the amount that consumers are willing and able to pay for a good or service

In this case, Nicki is willing to pay $1,100 for the camera, but she is only asked to pay 900. So Nicki has a consumer surplus of $200

7 0
3 years ago
Which of these is critical information you should take into account when purchasing a new car? (5 points)
son4ous [18]

Answer:

reviews from reliable sources

Explanation:

you want to make sure that what you are buying is a good make and model and that others have not had issues with the car

5 0
3 years ago
What is the first thing you should do when a customer requests a sale item once you’ve determined that item is out of stock? Tel
ipn [44]

Answer:

Tell the customer when you store’s next delivery day is and to come back then Issue the customer a raincheck for the item that is out of stock

Explanation:

Customer<em> retention</em> is important as well as <em>meeting their specific needs</em>. It is unwise to turn back a customer and refer them to a competitor, this may mean loss of business (currently and in the future). Also it is unwise to offer a substitute item as this will not meet their needs (though you may want to inform them of the substitute item if they are interested).  Issue the customer a raincheck for the item that is out of stock is the best way to go and keep the business.

7 0
3 years ago
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