Answer:
b. greater; normal
Explanation:
Income elasticity describes the response of the demand of a certain good to the change of the income of the consumers. If the elasticity of income is greater than zero (or is positive) , then we can categorize that particular good as a "normal good". This means that as the income of the consumers increases, the demand of that particular good increases as well.
The counter part of a normal good is called inferior good. They have a negative elasticity of income, which means as the income of consumers increases, the demand of that particular good decreases.
Answer
Minimum required return in august will be $59320
Explanation:
We have given the west division of Cecchetti Corporation had average operating assets of $638,000
Net operating income = $78000
Minimum required rate of return = 14 % = 0.14
We have to find the minimum required return in august
Minimum required return is given by
Minimum required return = Average assets × minimum return rate
Answer:
The required rate of return on the risky projects is 17.40%
Explanation:
The required rate of return on average risky projects of Frank and Sons can be computed using the cost of equity formula below:
Ke=Rf+beta*(Mr-Rf)
Rf is the risk rate of return on government security which is 7%
beta is the sensitivity of the project to market return is 1.3
Mr is the market expected return which is 15%
Ke=7%+1.3*(15%-7%)
Ke=7%+1.3*8%
Ke=7%+10.4%
Ke=17.40%
The required rate of return on the risky projects is 17.40%
Answer:
Voluntary Transaction can be understood as: Voluntary transactions enhances social welfare by enabling suppliers and consumers to willingly participate in market transactions together.
When the transactions are forced, market transactions will reduce/decrease as a result of suppliers and consumers not being able to participate jointly willingly again.
This ultimately favors the consumers as they would gain more happiness if they would be be allowed to select what transactions they participate in.
If this answer is true or false, the answer is False.
