Select two answers

. The income elasticity of demand for medical care is 1.35. This implies that: a. if income decreases by 1%, the quantity demand

Andre45 [30]

Answer:

The correct answer is a).

Explanation:

The income elasticity of demand refers to the percentual variation of quantity demanded of a certaing good in response to a percentual variation in income.

If the income elasticity of demand for medical care is 1.35,

a. if income decreases by 1%, the quantity demanded for medical care decreases by 1.35%. TRUE, this is what the definition implies.

b. if the price of medical care increases by 1%, the quantity demanded for medical care decreases by 1.35%. FALSE. In this elasticity, the sign is relevant. This income elasticity implies that changes in income and medical care expenses have the same sign.

c. if the income of the average consumer increases by 1 dollar, the quantity demanded for medical care will increase by 1.35 units of care. FALSE. The elasticity relates percentual variations, not absolute value variations.

d. if income increases by 1%, the quantity demanded for medical care decreases by 1.35%. FALSE. The same as point b.

5 0

4 years ago

Mixed economies: Multiple select question. are slowly disappearing, since they are unsuccessful exist when the distribution of r

yuradex [85]

There are different type of economies, Mixed economies exist when the distribution of resources involves elements from more than one economic system.

<h3>What is mixed economies? </h3>

Mixed economy is a type of market system where resource are allocated and trade in market where free markets coexist with government intervention.

private companies and government owned both exist and share resources together.

Therefore, Mixed economies exist when the distribution of resources involves elements from more than one economic system.

Learn more on mixed economy here

https://brainly.in/question/2334965

6 0

2 years ago

Three entrepreneurs were looking to start a new brewpub near sacramento, california, called roseville brewing company (rbc). bre

svet-max [94.6K]

Answer:

A lot of information is missing as well as the requirements, so I looked for similar questions.

The requirements are:

a. What is the break-even point in sales dollars for RBC?

b. What is the margin of safety for RBC?

c. What sales dollars would be required to achieve an operating profit of $250.000? $490.000?

a) break even point = total fixed costs / contribution margin

total fixed costs = $1,125,430
contribution margin = $1,427,642 / $1,953,000 = 73%

break even point = $1,124,430 / 73% = $1,540,315

b) margin of safety = current sales - break even point = $1,953,000 - $1,540,315 = $412,685

c) operating profit = $250,000 ⇒ ($1,125,430 + $250,000) / 73% = $1,884,150.69

operating profit = $490,000 ⇒ ($1,125,430 + $490,000) / 73% = $2,212,917.81

7 0

3 years ago

There is no difference between the law of diminishing marginal returns and the law of diminishing marginal rate of technical sub

Tasya [4]

Answer:

False

Explanation:

There is a huge difference between Diminishing marginal utility and law of diminishing marginal rate of technical substitution. The diminishing marginal rate of utility is used to construct short-run production function and it is based on cardinal utility. Correspondingly, the law of diminishing marginal utility is used to construct long-run isoquants and isocost curve, and it represents ordinal utility.

7 0

3 years ago

Susie buys a share of Alphabet stock through her broker, Mr. Diaz, who works for Acme Investing and purchases the stock at the N

Andrew [12]

Answer:

Alphabet stock; Acme Investing; New York Stock Exchange.

Explanation:

Susie buys a share of Alphabet stock through her broker, Mr. Diaz, who works for Acme Investing and purchases the stock at the New York Stock Exchange. In this transaction, Alphabet stock is a financial instrument, Acme Investing is a financial institution, and New York Stock Exchange represents a financial market.

Financial instruments can be defined as assets which are having monetary value or used to record a monetary transaction. Financial instruments are generally classified on the basis of their risks, maturity, issuers etc. Some examples of financial instruments are stocks, treasury bills, commercial paper, money market mutual fund, certificate of deposits, corporate bonds etc. The market where these financial instruments (securities and derivatives) are being traded at a low transaction rate is referred to as the financial market.

Furthermore, financial institutions can be defined as a business firm or company that is involved in the business of trading financial instruments.

6 0

3 years ago