A local kayak outfitter has been looking over the latest data from the Census, which reported that income in the area where the outfitter is based has increased by 20%. If the outfitter then tells you that her sales increased by 10%, what would be the income elasticity of demand and how would you interpret it? EY = 2; for a 1% increase in income, the outfitter can expect to see a 2% increase in her sales. EY = 0.5; for a 1% increase in income, the outfitter can expect to see a 2% increase in her sales. EY = 0.5; for a 1% increase in income, the outfitter can expect to see a 0.5% increase in her sales. EY = 2; for a 1% increase in income, the outfitter can expect to see a 0.5% increase in her sales.
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Ответ:
Explanation:
i=interest rate
X=current rate
2X = double current rate
n = number of years
Calculate time it takes to double at 3%:
2X = X(1+i)^n
simplify by cancelling out X
(1+i)^n = 2
substitute i = 3%
(1.03)^n =2
take log
n*log(1.03) = log(2)
n = log(2)/log(1.03) = 0.6931/0.02956 = 23.45 years
Similarly, for growth rate of 7%,
n = log(2)/log(1.07) = 0.6931 / 0.06766 = 10.24 years
So the difference is 23.45-10.24 = 13.21 years (to the hundredth) sooner