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Marina86 [1]
1 year ago
13

Blake eats two bags of potato chips each day. Blake's hourly wage increases from $9 to $15, and he decides to stop eating generi

c chips and instead eats a name brand potato chip. Use the midpoint method to calculate Blake's income elasticity of demand for generic potato chips.
Business
1 answer:
max2010maxim [7]1 year ago
8 0

Answer:

-4 units

Explanation:

Using the midpoint method, Blake's income elasticity of demand for generic potato chips is given by the change in demand (D) multiplied by his average income (I), divided by the change in income multiplied by the average demand:

E=\frac{\Delta D}{\Delta I}*\frac{I_{avg}}{D_avg}\\E=\frac{0-2}{15-9}*\frac{\frac{9+15}{2}}{\frac{2+0}{2} }\\E=-4\ units

Blake's income elasticity of demand is -4 units.

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A nine-year project is expected to generate annual revenues of $137,800, variable costs of $82,600, and fixed costs of $11,000.
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Answer:

Option (a) is correct.

Explanation:

Given that,

Annual revenues = $137,800,

variable costs = $82,600

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Annual depreciation = $23,500

Tax rate = 34 percent

Annual Income before Taxes:

= Annual revenues - Variable cost - Fixed Costs - Depreciation

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Net income:

= Annual Income before Taxes × ( 1 - T)

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Annual operating cash flow:

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3 0
2 years ago
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Answer:

NONE

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Their investment is valued at cost, it do not recognize gains for the company's income or losses.  

6 0
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