Answer:
a. positive, so Joan considers hamburger to be an inferior good.
Explanation:
Income elasticity is a microeconomic concept that aims to measure the sensitivity of demand in the face of income changes. To calculate the Income elasticity , a formula is used that divides the observed percentage change in quantity (Q) by the percentage change in price income (P): Elasticity = ▲ Q / ▲ P
The percentage change in quantity (▲ Q) and the percentage change in price (▲ P) are calculated by the difference in quantity / price in the two periods divided by the quantity / price of the first period.
▲ Q = (60 -50/60) = 0,16
▲ Q = (40.000 - 30.000/40.000) = 0,25
Elasticity = ▲ Q / ▲ P = 0,16/0,25 = 0,64
Therefore, the elasticity is positive.
This good is considered inferior, because according to microeconomic theory, inferior goods are those whose demand increases when consumer income decreases. This is the opposite of the normal good, which has its demand increased when income increases.
Answer:
The future value is $6,894.21
Explanation:
Giving the following information:
Dominic Joseph deposits $5,000 in a new savings account. The account pays 5.5 percent interest compounded annually.
To calculate the future value, we need to use the following formula:
FV= PV*(1+i)^n
PV= 5,000
i= 0.055
n=6
FV= 5,000*(1.055)^6= $6,894.21
Answer:
Survey Researcher
Public Relations Specialist
Telemarketer
Purchasing Manager
Explanation:
I just got this answer correct on my online exam.
Answer and Explanation:
a. The Journal entries are shown below:-
Investment - Capital stock Dr, $51.5 million
To Cash $51.5 million
(Being investment is recorded)
Unrealized holding gain or loss Dr, $15.5 million ($51.5 - $36.0)
To Fair value adjustment $15.5 million
(Being fair value adjustment is recorded)
b. Unrealized holding gain or loss Dr, $5.5 million ($51.5 - $30.5 - $15.5)
To Fair value adjustment $5.5 million
(Being fair value adjustment before sale is recorded)
Cash Dr, $30.5 million
Unrealized holding gain or loss Dr, $21 million
To Investment - Capital stock $51.5 million
(Being sale of investment is recorded)
Answer:
True
Explanation:
The internal rate of return is a measurement utilised in capital planning to appraise the productivity of potential investment. The internal rate of return is a markdown rate that makes the net present worth of all incomes from a specific task equivalent to zero. If the NPV is zero the project is not feasible and if the NPV is zero or positive the investor should invest in that particular project