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Wittaler [7]
2 years ago
12

As the average hourly wage increases from $22 per hour to $28 per hour, the quantity demanded of Americano coffees increases fro

m 3,000 to 3,450. What is the income elasticity of demand for Americano coffees?
Business
1 answer:
KIM [24]2 years ago
6 0

Answer:income elasticity of demand for Americano coffees = 0.55

Explanation:

Income Elasticitity of demand = percentage change in quantity demanded / Percentage change in income

which can easily be calculated using

Income Elasticitity of demand =(New quantity  demanded - old quantity demanded/ old quantity)/(New Income - Old income /old income.

new income = $28

old income=$22

new quantity= 3450

old quantity=3000

Bringing down our formulae

Income Elasticitity of demand =(New quantitry  demanded - old quantity demanded/ old quantity)/(New Income - Old income /old income.

= {(3450-3000) /3000} /{(28-22)/22} =(450/3000) /(6/22) = 0.15/0.2727=0.55

income elasticity of demand for Americano coffees = 0.55

Here , we can see that we have a positive income elasticity of demand therefore Americano coffees is a normal good as an increase in income will lead to a rise in demand.  Also, the income elasticity of demand for this commodity is less than 1, therefore it is also a necessity good.

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Andreyy89

Answer:

Getting a work-study job

Working at an on-campus job

Explanation:

The first option that will meet Matt's needs is to get a work-study job. A work-study job is like a financial aid program available in the universities to help students out of their financial needs. Work-study job is a part-time job that will enable Matt to work while studying at the University in California. It allows Matt to engage in a part-time job for some hours a week during his free time, like 20 hours a week while he studies in school and earns some money to subsidize the cost of his studies since Matt wants to avoid paying debt once he is out of school.

A work-study job is the best option for Matt's finance position because it will provide financial assistance for the cost of his education.

The other option for Matt is to work at an on-campus job. This is almost the same as a work-study job because it is a part-time job and carried out only in his free time. It is a part-time job done by students in the university while studying to help their financial needs. The only difference with the work-study job is that the job here will only be done on campus, unlike work-study job which can be done outside the campus. Here Matt will have to get a part-time job on campus and not outside the campus.

7 0
2 years ago
Read 2 more answers
If fixed costs are $850,000 and the unit contribution margin is $50, profit is zero when 15,000 units are sold.
Firlakuza [10]
B false
Hope this helps
6 0
2 years ago
When its sales were declining, canadian airline conducted a marketing survey to understand the expectations of the business trav
Montano1993 [528]

Answer:

The correct answer would be, The Canadian Airline would have used Lost Customer Recovery Strategy.

Explanation:

When the sales of the Canadian Airline declines, they surveyed their target market which is Business Class Travelers. From the responses of the customers, they found out that customers feel bounded by the staff of the airplane. They think that they were totally controlled by the staff on board.

Now if the Canadian Airline would have surveyed their former customers, then they would have known why they left their airline, and what was their concerns and what they want in this airline; then the strategy used by them would have Lost Customer Recovery Strategy.

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2 years ago
Which question is best for assessing the effectiveness of business products?
irga5000 [103]

Answer:

A. Does a product's quality meet the business goal for quality.

Explanation:

Modern companies have internal quality control mechanisms integrated into their business processes. The goal of quality control is the ensure that all products meet the desired quality. The be competitive, the company's products must be of internationally accepted standards.

To determine if the product is effective, the company must test samples for quality. Through the quality manager, the company defines its quality goal, which every product must attain.

5 0
2 years ago
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Rainbow [258]

Answer:

The value of m is Three (3)

Explanation:

The annualized return or annual return on investment s the percentage that tells you how much an investment has increased in value on average per year over a period of time.

Annual return can be a preferable metric to use over simple return when you want to evaluate how successful an investment has been or to compare the returns of two investments you've held over different time frames on equal footing.

Now, to calculate the annual returns,

We look up the current price and  purchase price.

If the stock has undergone any splits, make sure the purchase price is adjusted for splits. If it isn't, you can adjust it yourself. For example, if you held a stock for 4 years, during which time it has had a 2:1 and a 3:1 split, then you can calculate your split-adjusted purchase price by dividing your purchase price by 6 (2 x 3).

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After which we go ahead to annualize it.

3 0
2 years ago
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