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andrew-mc [135]
2 years ago
5

Lauren's salary decreases from $34,000 to $30,000. She decides to reduce the number of outfits she purchases each year from 20 t

o 19 . Use the midpoint method to calculate the income elasticity of demand for new outfits. Round your answer to two decimal places.
Business
1 answer:
Kitty [74]2 years ago
5 0

Answer:

8.08

Explanation:

Hi!

The income elasticity of demand is calculated by dividing the negative % change in demand by the % change in real income.

We calculate the negative % change in demand as:

19/20 = 0.95, a 95%

Then, the % change in real income as:

(34,000-30,000)/34,000 = 0.1176, an 11.76%

So the income elasticity of demand is:

0.95/0.1176 = 8.08

Hope it helps! :)

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When Coca-Cola carries a different price depending on whether the consumer purchases it in a fine restaurant, a fast-food restau
Mashcka [7]

Answer:

The correct answer is Channel pricing.

Explanation:

In the industry, the Channel Pricing is used with the purpose of setting the prices depending on the means of delivery of goods or services. Coca-cola used the channel pricing to offer different prices depending on the location the people usually buy the products.

4 0
2 years ago
Rosalyn is a single mother with two children ages 3 and 5, and she lives paycheck to paycheck. She is trying to save money for a
marta [7]

Answer:

This question is business question so I will answer it from business perspective. The least that I can do is offer her a one year package with an advance of $50. The monthly installment along with the interest that she will pay would be:

Monthly Installment including interest = (Amount Due/12months) + (Outstanding Amount * Interest Rate) ....Eq1

So I assume the interest rate is 5% and as we know the outstanding amount is $150.

By putting the values, we have:

Monthly Installment including interest = ($150/12months) + ($150 * 5%)

= $12.5 + $7.5 = $21 per month

Now the outstanding amount for the second month = $150 - $12.5 = $137.5

Now we will use this new outstanding amount to calculate the monthly installments including the interest by putting the values in the equation 1. Similarly for the next coming months the installments would be calculated.

7 0
2 years ago
Which of the following people is considered to be in the labor force? Select all that apply: Gina is a stay-at-home mom and volu
Fudgin [204]

Answer:3

Explanation:

niot sure

4 0
2 years ago
On April 2, Kelvin sold $40,000 of inventory items on credit with the terms 1/10, net 30. Payment on $24,000 sales was received
motikmotik

Answer:

Explanation:

The journal entry is shown below:

1. Accounts receivable A/c Dr $160

        To Sales discounts forfeited $160

(Being sales discount  is recorded)

The computation of the sales discount is shown below:

= (Sales value - payment made) × discount rate

= ($40,000 - $24,000) × 1%

= $160

2. Cash A/c Dr $16,000

       To Accounts receivable A/c $16,000

(Being cash is received)

4 0
2 years ago
Last year a certain bond with a face value of $5,000 yielded 8 percent of its face value in interest. If that interest was appro
Katen [24]

Answer:

bond's selling price is $6154

Explanation:

given data

face value = $5,000

interest = 8 % of face value

rate = 6.5 %

to find out

bond's selling price

solution

we find interest that is

interest = 8 % of face value

interest = 8 % × 5000

interest = 400

so we consider bond selling price is x

so

bond selling equation will be

interest = rate × bond selling price

400 = 0.065 × x

x = 6154

so bond's selling price is $6154

8 0
2 years ago
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