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The Waymand family typically ate hamburger as a regular staple in their diet. In the last few years, the family income has doubled, and they have now replaced hamburger with steak as a regular staple in their diet. This is an example where the demand for hamburger:
Suggested Answer: C
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Choice 'c' is correct. The most logical sequence in planning and controlling capital expenditures is to begin with identifying capital addition projects and other capital needs.
Choice 'a' is incorrect. Analyzing capital addition proposals omits other capital needs.
Choice 'b' is incorrect. Analyzing and evaluating all promising alternatives is beyond the scope of planning and controlling capital expenditures.
Choice 'd' is incorrect. Developing capital budgets is the same as planning and controlling capital expenditures.
37 comments · newest first
CH
Charlene
10 months ago
Surprised they switched to steak so quickly!
GW
Gwenn
11 months ago
Nah, I think it's just a preference change, not elastic.
AL
Alva
11 months ago
Wait, isn't it more about income elasticity?
TO
Tomoko
11 months ago
Totally agree, they upgraded their diet!
MA
Marjory
11 months ago
Hamburger is definitely an inferior good in this case.
HE
Helga
12 months ago
I thought perfectly inelastic meant that demand wouldn’t change at all, so that doesn’t seem right here. I’m confused about the other options though.
EL
Elbert
12 months ago
I practiced a question like this before, and I think it was about how demand changes with income. I’m leaning towards it being an inferior good.
RE
Reiko
12 months ago
I’m a bit unsure, but I feel like this could relate to elasticity. Maybe it’s more elastic since they changed their staple?
PU
Pura
1 year ago
I remember studying how inferior goods work, and I think hamburger might fit that definition since they switched to steak with higher income.
LA
Launa
1 year ago
I'm pretty confident on this one. The key is that the family's income has increased, and they've substituted the cheaper hamburger for the more expensive steak. That means hamburger is an inferior good, and the demand for it is relatively elastic in response to the change in income.
AD
Adrianna
1 year ago
Okay, I've got this. Since the family's income has doubled, and they've switched from hamburger to the more expensive steak, that means hamburger is an inferior good in this case. The demand for hamburger is relatively elastic, since a change in income led to a significant change in consumption.
CA
Cammy
1 year ago
Hmm, I'm a bit unsure about this one. I know demand elasticity has to do with how responsive demand is to changes in price or income, but I'm not totally clear on the difference between elastic, inelastic, and inferior goods. Let me re-read the question and think it through step-by-step.
BA
Barrett
1 year ago
This seems like a straightforward question on demand elasticity. I'll think through the scenario carefully and consider how the change in income affects the demand for hamburger.
DE
Dean
1 year ago
This is a tricky one. I'm going to have to think it through step-by-step. Let me re-read the question and options again to make sure I understand the nuances.
PA
Paul
1 year ago
I think the Dynamic Failure Detection and Recovery pattern mainly deals with runtime failures, so I'm leaning towards option B.
MO
Mollie
1 year ago
I bet the Waymands are now all about that 'beef bourguignon' life. Gotta keep up with the Jones's, am I right?
LE
Leota
1 year ago
C is the correct answer, no doubt about it. Hamburger is clearly an inferior good in this scenario. Who would've thought the Waymands were such fancy steak eaters?
IR
Irving
1 year ago
D) Is perfectly inelastic.
VE
Veronika
1 year ago
C) Responds as an inferior good.
HI
Hillary
1 year ago
B) Is perfectly elastic.
JO
Jose
1 year ago
A) Is relatively elastic.
JA
Jannette
1 year ago
I'm going with D. The demand for hamburger is perfectly inelastic, meaning it doesn't respond to changes in income or price.
AL
Alpha
1 year ago
I agree with you, the demand for hamburger is perfectly inelastic.
RA
Raina
1 year ago
I believe the demand for hamburger responds as an inferior good.
TY
Ty
1 year ago
I think the demand for hamburger is relatively elastic.
TI
Tiara
1 year ago
Hmm, I'm not sure about this one. I was thinking B, but now I'm leaning towards C. This is a tricky one!
KE
Keneth
1 year ago
I agree, the increase in income causing a shift from hamburger to steak suggests it's an inferior good.
JO
Jose
1 year ago
No, I think it's C) Responds as an inferior good.
LI
Lisbeth
1 year ago
A) Is relatively elastic.
BE
Benton
1 year ago
I think the answer is C. When the family's income increased, they switched from the cheaper hamburger to the more expensive steak, indicating that hamburger is an inferior good.
SA
Sarah
1 year ago
D) Is perfectly inelastic.
VI
Vincent
1 year ago
C) Responds as an inferior good.
EL
Ellen
1 year ago
B) Is perfectly elastic.
LA
Laurel
1 year ago
A) Is relatively elastic.
JU
Juliana
2 years ago
I believe the demand for hamburger responds as an inferior good.
KE
Keena
2 years ago
I agree with Phyliss, because as the family income doubled, they switched to steak.
PH
Phyliss
2 years ago
I think the demand for hamburger is relatively elastic.