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3 years ago

For which of the following goods is the income elasticity of demand likely highest?

Business

1 answer:

Mekhanik [1.2K]3 years ago

4 0

Answer:

c. boats

Explanation:

Income elasticity of demand measures how quantity demanded responds to changes in price.

Goods that are considered necessities usually have the lowest income elasticity of demand. Therefore, the income elasticity of demand for doctors visits and natural gas would be relatively low.

The income elasticity of demand for luxury goods are usually high. Therefore, the income elasticity for boats would be high.

Goods whose price is small compared to income would have a low income elascitiy. Therefore, the income elasticity for hamburgers would be low.

I hope my answer helps you.

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Diane's Designs purchased a one-year liability insurance policy on March 1 of a year for $8,400 and recorded it as a prepaid exp

Liula [17]

Answer:

$700 (not given in the options)

Explanation:

When the policy is purchased with a payment made in advance, the entries recorded are

Debit prepaid insurance $8,400

Credit Cash account $8,400

After the first month, the expense incurred is

= 1/12 × $8,400

= $700

Entries then required

Debit Insurance expense $700

Credit Prepaid Insurance $700

5 0

3 years ago

Given a fixed supply of money and a downward sloping aggregate demand curve, an increase in money demand will ________ the price

Blizzard [7]

Money supply is the total amount of money in circulation which includes coins, cash and balance in savings account in a country at a period of time.

Given a fixed supply of money and a downward sloping aggregate demand curve, an increase in money demand will <u>not change</u> the price paid for its use, otherwise known as the <u>discount rate.</u>

A change the money supply in a country causes a change in aggregate demand.

An increase in the money supply causes increase in aggregate demand and a decrease in the money supply causes decrease in aggregate demand.

Therefore, an increase in money demand will not change the price paid for its use, otherwise known as the discount rate.

brainly.com/question/12225192

8 0

3 years ago

Which piece of information would you find on an income statement?

Tatiana [17]

The answer is cost of goods sold... brainliest plz

3 0

3 years ago

Which of the following is an example of irregular income? a) A full-time job b) A part-time job c) A graduation gift d) Both b a

alexandr402 [8]

Which of the following is an example of irregular income?
A. A full-time job
B. A part-time job
C. A graduation gift
D. Both b and c

The answer is C

8 0

3 years ago

Read 2 more answers

Salmon Inc. has debt with both a face and a market value of $227,000. This debt has a coupon rate of 7 percent and pays interest

Dahasolnce [82]

Answer:

14.27%

Explanation:

Unlevered value = [Expected earnings before interest and taxes × (1- tax rate)]/Unlevered cost of capital

Unlevered value = [$87,200 x (1- 0.35)]/0.12 = $472,333.33

Levered value = Unlevered value + (Tax rate × Debt market value)

Levered value = $472,333.33 + (0.35 x $227,000) = $551,783.33

Value of equity = Levered value - Debt market value

Value of equity = $551,783.33 - $227,000 = $324,783.33

Cost of equity = Unlevered cost of capital + [(unlevered cost of capital - coupon rate) × (Debt market value/Value of equity) × (1 - Tax rate)]

Cost of equity = 0.12 + [(0.12 - 0.07) × ($227,000/$324,783.33) × (1 - 0.35)] = 0.1427, or 14.27%

Therefore, the firm's cost of equity is 14.27%

7 0

3 years ago