4 Data collected from the economy of Cardtown reveals that a 16% increase in income leads to the following changes:• A 6% Increase in the quantity of chips demanded• A 14% decrease in the quantity of spades demanded• A 29% Increase in the quantity of houses demandedCompute the income-elasticity of demand for each good and use the dropdown menus to complete the first column in the following table. Then, basedon 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.)GoodIncome Elasticity of Demand Normal or Inferior GoodChipsSpadesHousesWhich of the following three goods is most likely to be classified as a luxury good ?SpadesO ChipsO Houses

Answered: Image /qna-images/answer/328d4357-9315-4fe0-93cb-2db086058c09.jpg

Answered: Data collected from the economy of…

Linear Algebra: A Modern Introduction

4th Edition

ISBN:9781285463247

Author:David Poole

Publisher:David Poole

Chapter2: Systems Of Linear Equations

Section2.4: Applications

Problem 23EQ: 23. Consider a simple economy with just two industries: farming and manufacturing. Farming consumes...

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23. Consider a simple economy with just two industries: farming and manufacturing. Farming consumes 1/2 of the food and 1/3 of the manufactured goods. Manufacturing consumes 1/2 of the food and 2/3 of the manufactured goods. Assuming the economy is closed and in equilibrium, find the relative outputs of the farming and manufacturing industries.
Two pumps capable of delivering 100 hp to an agricultural application are being evaluated in a present economy study. The selected pump will only be utilized for one year, and it will have no market value at the end of the year. Pertinent data are summarized as given follows. If electric power costs $0.10 per kWh and the pump will be operated 4,000 hours per year, which pump should be chosen? Recall that 1 hp = 0.746 kW.
The production planning period for flat-screen moni-tors at Louisiana’s Roa Electronics, Inc., is 4 months. Cost data are as follows:Regular-time cost per monitor $ 70Overtime cost per monitor $110Subcontract cost per monitor $120Carrying cost per monitor per month $ 4 For each of the next 4 months, capacity and demand for flat-screen monitors are as follows: PERIOD MONTH 1 MONTH 2 MONTH 3 a MONTH 4Demand 2,000 2,500 1,500 2,100CapacityRegular time 1,500 1,600 750 1,600Overtime 400 400 200 400Subcontract 600 600 600 600aFactory closes for 2 weeks of vacation.CEO Mohan Roa expects to enter the planning period with 500monitors in stock. Back ordering is not permitted (meaning, forexample, that monitors produced in the second month cannot beused to cover first month’s demand). Develop a production planthat minimizes costs using the transportation method.
Table 1 HPF Demand in the last 12 periods Period Month Demand in '000 Period Month Demand in '000 1 January 37 7 July 43 2 February 40 8 August 47 3 March 41 9 September 56 4 April 37 10 October 52 5 May 45 11 November 55 6 June 50 12 December 54 The manager of the company wants to be certain enough OFC01 are available to complete orders promptly and they have adequate inventory in stock. During the last meeting, a number of forecast techniques have been discussed: Simple moving average n = 4 Weighted moving average with n=4 with the following weights from most recent periods: 0.4, 0.3, 0.2, 0.1 Exponential Smoothing with alpha = 0.2 Linear trend The manager would like to ascertain the best tools that he and his team can effectively manage the production processes. Among the above forecasting methods, which method should be used to forecast the demand for this product? Why? The…
Suppose that the index model for two Canadian stocks HD and ML is estimated with the following results: RHD =-0.03+2.10RM+eHD R-squared =0.7 RML =0.06+1.60RM+eML R-squared =0.6 σM =0.15 where M is S&P/TSX Comp Index and RX is the excess return of stock X. For portfolio P with investment proportion of 0.4 in HD and 0.6 in ML, calculate the systematic risk, non-systematic risk, and total risk of P.
Observations of the demand for a certain part stocked at a parts supply depot during the calendaryear 2013 were: Month Demand Month Demand Jan 89 july 223 Feb 57 august 286 mar 144 sept 212 april 221 oct 275 may 177 nov 188 june 280 dec 312 a) Using a four-month moving average, determine the one-step-ahead forecast for Julythrough December 2013.b) Using a four-month moving average, determine the two-step-ahead forecast for Julythrough December 2013.c) Obtain the MAD for the forecasts obtained in the above sections. Which method gavebetter results? Based on forecasting theory, which method should have given betterresults?
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Dentists are increasingly concerned about the growing trend of local school districts to grant soft drink companies exclusive rights to install soda pop machines in schools in return for money-usually millions-that goes directly into school coffers. According to a recent study by the National Soft Drink Association, 62% of schools nationally already have such contracts. This comes at a time when dentists are seeing an alarming increase in horribly decayed teeth and eroded enamel in the mouths of teenagers and young adults. With ready access to soft drinks, children tend to drink them all day. That, combined with no opportunity to brush, leads to disaster, dentists say. Suppose that 20 schools around the country are randomly selected and asked if they have a soft drink contract. Find the probability that the number of 'Yes" answers is A. exactly 8 B. at most 8 C. at least 4 D. between 4 and 12, inclusive
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Given that a zone has 350 households with access to cars and 295 households without access to cars and the average trip generation rates for each group are 4.0 and 2.0 trips per day, respectively. Assuming that in the future, households will have similar distribution with access and without access to a car, as per the existing situation. There will be an addition of 650 households with a similar distribution of car ownership. Find the growth factor and future trips from that zone.
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