Using the income elasticity of demand to characterize goods data collected from the economy of royal city reveals that an 18% increase in income leads to the following changes: • a 29% increase in the quantity of houses demanded • a 17% decrease in the quantity of spades demanded • a 14% increase in the quantity of horses demanded compute the income elasticity of demand for each good and use the dropdown menus to complete the first column in the following table. then, based on its income elasticity, indicate whether each good is a normal good or an inferior good. (hint: be careful to keep track of the direction of change. the sign of the income elasticity of demand can be positive or negative, and the sign confers important information.) good income elasticity of demand normal or inferior good houses -1.61 spades horses which of the following three goods is most likely to be classified as a luxury good ? houses spades horses

Upscale hotels in the united states recently cut their prices by 20 percent in an effort to bolster dwindling occupancy rates among business travelers. a survey performed by a major research organization indicated that businesses are wary of current economic conditions and are now resorting to electronic media, such as the internet and the telephone, to transact business. assume a company's budget permits it to spend $5,000 per month on either business travel or electronic media to transact business. graphically illustrate how a 20 percent decline in the price of business travel would impact this company's budget set if the price of business travel was initially $1,000 per trip and the price of electronic media was $500 per hour. suppose that, after the price of business travel drops, the company issues a report indicating that its marginal rate of substitution between electronic media and business travel is 1. is the company allocating resources efficiently? explain.

Grey company holds an overdue note receivable of $800,000 plus recorded accrued interest of $64,000. the effective interest rate is 8%. as the result of a court-imposed settlement on december 31, year 3, grey agreed to the following restructuring arrangement: reduced the principal obligation to $600,000.forgave the $64,000 accrued interest.extended the maturity date to december 31, year 5.annual interest of $40,000 is to be paid to grey on december 31, year 4 and year 5. the present value of the interest and principal payments to be received by grey company discounted for two years at 8% is $585,734. grey does not elect the fair value option for reporting the debt modification. on december 31, year 3, grey would recognize a valuation allowance for impaired loans of

Select all that apply. what do opponents of minimum wage believe are the results of minimum wage? increases personal income results in job shortages causes unemployment raises prices of goods