Answer: Becky's income elasticity of demand for eating at Macaroni grill is 10.22.
We calculate income elasticity of demand with the following formula:
![\mathbf{\eta _{I}= \frac{(Q_{1}-Q_{0})/(Q_{1}+Q_{0})}{(I_{1}-I_{0})/(I_{1}+I_{0})}}](https://tex.z-dn.net/?f=%5Cmathbf%7B%5Ceta%20_%7BI%7D%3D%20%5Cfrac%7B%28Q_%7B1%7D-Q_%7B0%7D%29%2F%28Q_%7B1%7D%2BQ_%7B0%7D%29%7D%7B%28I_%7B1%7D-I_%7B0%7D%29%2F%28I_%7B1%7D%2BI_%7B0%7D%29%7D%7D)
where
η is the Greek letter eta that is used to denote elasticity of demand
Subscript I is used to denote Income elasticity
Q₁ is the quantity consumed after change in income
Q₀ is the quantity consumed before in income
I₁ is the new income
I₀ is the old income
Substituting the values we get,
![\mathbf{\eta _{I}= \frac{(5-3)/(5+3)}{(33500-31900)/(33500+31900)}}](https://tex.z-dn.net/?f=%5Cmathbf%7B%5Ceta%20_%7BI%7D%3D%20%5Cfrac%7B%285-3%29%2F%285%2B3%29%7D%7B%2833500-31900%29%2F%2833500%2B31900%29%7D%7D)
![\mathbf{\eta _{I}= \frac{(2)/(8)}{(1600)/(65400)}}](https://tex.z-dn.net/?f=%5Cmathbf%7B%5Ceta%20_%7BI%7D%3D%20%5Cfrac%7B%282%29%2F%288%29%7D%7B%281600%29%2F%2865400%29%7D%7D)
![\mathbf{\eta _{I}= \frac{0.25}{0.024464832} = 10.21875}](https://tex.z-dn.net/?f=%5Cmathbf%7B%5Ceta%20_%7BI%7D%3D%20%5Cfrac%7B0.25%7D%7B0.024464832%7D%20%3D%2010.21875%7D)
Answer:
A favorable balance of trade; occurs when the value of a country's exports exceeds that of its imports. An unfavorable balance of trade; occurs when the value of a country's imports exceeds that of its exports.
Explanation:
Answer:
As the Company has received a Cheque of $10,000,000 for payment in full. The Company though have not started the production it can consider such amount and cancel the contract and being a misc Income in its profit and loss account.
Though the product is being sold to an university and such organisation work on No profit no loss situation hence it can consider manufacturing 10 units and selling such units to the university at least the university also does not incur a loss of such a huge amount.
Reduced cost = $62,750
increased depreciation = $14,812
tax rate = 34% = 34/100 = 0.34
operating cash flow of this project = ?
operating cash flow = (reduced project cost x (1-tax rate)) + (increased amount of depreciation x tax rate)
= ($62,750 x (1-0.34)) + ($14,812 x 0.34)
= $41,415 + $5036.08
= $46,451.08
so, operating cash flow for this project is $46,451 approx.
Answer:
10 days
Explanation:
The Critical Path Method is a method of managing activities in a project so as to maximize time. In the case of A, B and C activities, since they are connected with the same start-to-start and finish-to-finish, it means that the activities are linked and as such the duration of the project is 10 days since the last activity will take 10 days to finish.
The implication between SS and FF in the activities means that they start up at the same time in the CPM and while activity A ends at 5 days, C proceeds to 10 days.