<span>Grapes are a(n) "normal good" with an income elasticity of demand of "0.8". A normal good is a good for which an increase in income results in increased demand, while decreased income results in decreased demand. Thus, we know that the first blank is "normal good" by the definition of a normal good becuase median income fell and demand for grapes fell. The X elasticity of demand is given by (%change in Demand)/(%change in X), where x is any economic variable (income in this case). Thus, to find the elasticity, we divide 12% by 15%. 12%/15%=.08.</span>
Answer:
The amount of interest accrued as of December 31, 2016 is $10,980.
Explanation:
On December 31, two months interest is accrued and this is equivalent to 61 days (30 days for November and 31 days for December).
Calculation of Interest accrued is as follows ;
Interest accrued = $360,000 × 6% × 61/120
= $10,980
Answer:
Net income will decrease by $400,000
Explanation:
Currently this business unit is generating a net loss of $150,000:
total revenue - variable expenses - fixed costs = $700,000 - $300,000 - $550,000 = -$150,000
if the unit is eliminated, then the revenue and variable expenses will be gone, but the fixed costs will be allocated to other business units. So instead of losing $150,000, the company will lose $550,000. The company's net income will decrease by $550,000 - $150,000 = $400,000
<h2>
Answer:</h2><h3><em><u>
Bond: 20%</u></em></h3><h3><u><em>
Mutual Fund: 15%</em></u></h3><h3><u><em>
Stock: 50%</em></u></h3><h3><u><em>
Savings Account: 15%</em></u></h3>
<h2>
Explanation:</h2><h3><u><em>
E v e r F i</em></u></h3>
Answer:
the most spend on research will be $12,000
Explanation:
given data
earn = 2% more
trading costs = 0.5%
stock portfolio = $800,000
solution
we know that here net earnings due to research is expected is
net earnings due to research = 2% - 0.5 % = 1.5 % of stock portfolio
so
spend on research is = 1.5 % of stock portfolio
spend on research is = $800,000 × 1.5%
spend on research is = $12,000
so here when we spend more than $12,000 it end up in a net loss
so the most spend on research will be $12,000
