Suppose you manage a convenience mart and are in charge of ordering products but do not set the price. the home office provides the prices. in your area, the income elasticity of demand for peanut butter is -.05. due to local factory closings, you expect local incomes to decrease by 20% on average in the next month. as a result, you should stock: a) 20% more peanut butter on the shelvesb) 5% more peanut butter on the shelvesc) 10% more peanut butter on the shelvesd) 10% less peanut butter on the shelves

The answer is: C) 10% more peanut butter on the shelves

Explanation:

To determine what you need to do with your peanut butter stock, you must first determine if the quantity demanded for peanut butter will increase or decrease and at what percentage. To do this we can use the following formula:

change in peanut butter sales = income elasticity of demand x average change in income

change in peanut butter sales = -5% x -20% = 10% increase

Since you expect a 10% increase in the quantity demanded for peanut butter, you should have 10% more peanut butter in stock

okay lol !

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.