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tankabanditka [31]
3 years ago
14

Suppose that after hurricane​ Irene, the average income in Cape​ Charles, Virginia decreased by 2 percent. In response to th

is change in​ income, suppose the quantity of steak demanded in Cape Charles​ (holding the price of steak​ constant) decreased by 12 percent. What is the income elasticity of demand for steak in Cape​ Charles? The income elasticity of demand for steak in Cape Charles is _______. ​(Enter your response rounded to two decimal​ places.) In this​ instance, steak in Cape Charles is _______
Business
1 answer:
satela [25.4K]3 years ago
7 0

Answer:The income elasticity of demand for steak in Cape Charles is ___6.0%____. In this​ instance, steak in Cape Charles is __A luxury good_____

Explanation:

The formula for calculating income elasticity is given as

Percentage Change in demand divided by the Percentage change in income

.

Income Elasticity = 12%/-2%= 6%

Luxury goods  have an income elasticity of demand greater  +1 what we can conclude from this is that buying streak from Cape Charles is not an essential economic activity because a fall in income resulted to a proportionate decrease in quantity demanded.

In this instance, steak in Cape Charles is  a Luxury good _____

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Which two lines intersect at level of output the firm is supplying if that business is earning zero economic profits?
IgorC [24]

The average cost curve and the variable revenue curve are two lines which intersect at level of output when the firm is supplying and that business is earning zero economic profits.

If the price which the  firm is charging from customer is higher than its average cost of production for the quantity of the goods produced, then the firm will earn profits to a large extent.

Conversely, if the price which is charged by the firm is lower than its average cost of production, the firm will suffer losses.

Thus when the cost is equal to the revenue of the firm it means there is no profit at all. At this level the average cost curve will intersect the revenue curve.

To know more about marginal cost curve here:

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4 0
2 years ago
As the CEO of a pharmaceutical company, Simone learned that the government was about to block the import of one of the company's
Galina-37 [17]

Answer:

She is guilty of Insider trading.

Explanation:

Insider trading is an illegal practice where a person indulges in trading activities for his own benefit with the help of confidential information.

In the above case, Simone took park in insiders trading because she had rights to some confidential information. She made use of that information towards her benefit and sold her shares before time.

I hope the answer was helpful.

3 0
3 years ago
A program trade is:_________. A. a trade of 10,000 (or more) shares of a stock. B. a trade of many shares of one stock for one o
neonofarm [45]

Answer:

The answer is: D

Explanation:

Program trading is the use of computer programs or algorithms to trade a portfolio of stocks at a high frequency and in large numbers. These algorithms, essentially 'machine traders', are created  to make trades on behalf of humans and are anticipated to have more precision and speed than human traders. However, these trades are created, monitored and analysed by human traders. The New York Stock Exchange classifies the coordinated trading of a group of 15 or more stocks with a combined market value of $1, 000, 000 as program trading.

6 0
4 years ago
John House has taken a 20-year, $250,000 mortgage on his house at an interest rate of 6 percent per year. What is the remaining
dangina [55]

Answer:

$211,689. 53

Explanation:

Calculation to determine the remaining balance (or value) of the mortgage after the payment of the fifth annual installment

Step 1 is to compute PMT using Financial calculator

I = 6%

N = 20

PV = 250,000

FV = 0

PMT=?

Hence,

PMT = 21,796.14.

Now let determine the PV using Financial calculator

I = 6%

N = 15

PMT = 21,796.14

PV=?

Hence,

PV = $211,689. 53

Therefore the remaining balance (or value) of the mortgage after the payment of the fifth annual installment is $211,689. 53

6 0
3 years ago
Policymakers sometimes propose laws requiring firms to give workers certain fringe benefits, such as health insurance or paid pa
zimovet [89]
I would say that the effects of such positive benefits as health insurance or paid parental leave will make the workplace much more attractive and cause a big rush to obtain employment at such places. It is well to remember that without the sacrifice of labour unions including jailings, beatings and even deaths these benefits would not be there ie they would not come just out of the goodness of someone's heart.
5 0
4 years ago
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