If the price for milk rises, the demand for cookies will decrease.
The price of a product plays a major role in the sales of a product and also the sales of other products that are bought in custom with it.
If milk and cookies go together then the price change in one of the products will also influence the sale of the other product. When the price of milk will rise, this means that lesser people will be able to buy the milk due to the higher price. Hence, as cookies go along will milk, the demand for cookies will decrease. People might also have to choose between buying only milk or cookies and hence the demand of cookies will decrease based on the preference in such a case.
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Sally has a decision to make about what she will do in the next 2 years. She can go to school or go straight into the work force. If Sally immediately starts working she will eam 20,000 both years and 2. If she goes to school in year 1 she must pay \$5,000, , but she would eam in year 2. If the interest rate is 5%, calculate the present value for Sally if she goes to school and if she does not. Does the investment in school make sense? Does it make sense if the interest rate is 6% or 4%?
Answer:
1(a) PV for Sally if she goes to school = $38,322.00
1(b) PV for Sally if she does not go to school = $37,188.21
1(c) Since the present value for Sally if she goes to school of $38,322.00 is greater than the present value if she does of $37,188.21, the investment in school makes sense.
2(a) PV for Sally if she goes to school = $37,557.85
2(b) PV for Sally if she does not go to school = $36,667.85
2(c) Since the present value for Sally if she goes to school of $37,557.85 is greater than the present value if she does not of $36,667.85, the investment in school makes sense.
3(a) PV for Sally if she goes to school = $39,108.73
3(b) PV for Sally if she does not go to school = $36,667.85
3(c) Since the present value for Sally if she goes to school of $39,108.73 is greater than the present value if she does not of $37,721.89, the investment in school makes sense.
Explanation:
Note: This question is not complete. The complete question is provided before answering the question as follows:
Sally has a decision to make about what she will do in the next 2 years. She can go to school or go straight into the workforce. If Sally immediately starts working, she will earn $20,000 in both years 1 and 2. If she goes to school in year 1, she must pay $5,000, but she would earn $47,500 in year 2. If the interest rate is 5%, calculate the present value for Sally if she goes to school and if she does not. Does the investment in school make sense? Does it make sense if the interest rate is 6% or 4%?
The explanation of the answer is now provided in 3 parts as follows:
To calculate the present value of an amount, the following formula is used:
PV = FV / (1 + r)^n ………………. (1)
Where:
PV = present value of an amount
FV = Future value an amount in a particular year
r = interest rate
n = the year in focus
Therefore, we have:
1(a) If the interest rate is 5%, calculate the present value for Sally if she goes to school
Using equation (1), we have:
PV of amount to pay in Year 1 = $5,000 / (1 + 0.05)^1 = $4,761.90
PV of earnings in Year 2 = $47,500 / (1 + 0.05)^2 = $43,083.90
Present value for Sally if she goes to school = PV of earnings in Year 2 earnings - PV of amount to pay in Year 1 = $43,083.90 - $4,761.90 = $38,322.00
1(b) If the interest rate is 5%, calculate the present value for Sally if she does not go to school
Using equation (1), we have:
PV of Year 1 earnings = $20,000 / (1 + 0.05)^1 = $19,047.62
PV of Year 2 earnings = $20,000 / (1 + 0.05)^2 = $18,140.59
Present value for Sally if she does not go to school = PV of Year 1 earnings + PV of Year 2 earnings = $19,047.62 + $18,140.59 = $37,188.21
1(c.) Does the investment in school make sense?
From parts 1(a) and 1(b) above, since the present value for Sally if she goes to school of $38,322.00 is greater than the present value for Sally if she does not go to school of $37,188.21, the investment in school makes sense.
2(a) If the interest rate is 6%, calculate the present value for Sally if she goes to school
Using equation (1), we have:
PV of amount to pay in Year 1 = $5,000 / (1 + 0.06)^1 = $4,716.98
PV of earnings in Year 2 = $47,500 / (1 + 0.06)^2 = $42,274.83
Present value for Sally if she goes to school = PV of earnings in Year 2 earnings - PV of amount to pay in Year 1 = $42,274.83 - $4,716.98 = $37,557.85
2(b) If the interest rate is 6%, calculate the present value for Sally if she does not go to school
Using equation (1), we have:
PV of Year 1 earnings = $20,000 / (1 + 0.06)^1 = $18,867.92
PV of Year 2 earnings = $20,000 / (1 + 0.06)^2 = $17,799.93
Present value for Sally if she does not go to school = PV of Year 1 earnings + PV of Year 2 earnings = $18,867.92 + $17,799.93 = $36,667.85
2(c.) Does the investment in school make sense?
From parts 2(a) and 2(b) above, since the present value for Sally if she goes to school of $37,557.85 is greater than the present value for Sally if she does not go to school of $36,667.85, the investment in school makes sense.
3(a) If the interest rate is 4%, calculate the present value for Sally if she goes to school
Using equation (1), we have:
PV of amount to pay in Year 1 = $5,000 / (1 + 0.04)^1 = $4,807.69
PV of earnings in Year 2 = $47,500 / (1 + 0.4)^2 = $43,916.42
Present value for Sally if she goes to school = PV of earnings in Year 2 earnings - PV of amount to pay in Year 1 = $43,916.42 - $4,807.69 = $39,108.73
3(b) If the interest rate is 6%, calculate the present value for Sally if she does not go to school
Using equation (1), we have:
PV of Year 1 earnings = $20,000 / (1 + 0.04)^1 = $19,230.77
PV of Year 2 earnings = $20,000 / (1 + 0.04)^2 = $18,491.12
Present value for Sally if she does not go to school = PV of Year 1 earnings + PV of Year 2 earnings = $19,230.77 + $18,491.12 = $37,721.89
3(c.) Does the investment in school make sense?
From parts 3(a) and 3(b) above, since the present value for Sally if she goes to school of $39,108.73 is greater than the present value for Sally if she does not go to school of $37,721.89, the investment in school makes sense.
New Horizons is a communication and information technology corporation. The company makes it a point to stress to its employees that innovation is its core strength. The employees even get an hour a day to brainstorm and come up with out-of-the-box ideas. This highlights the _____ of the company
The highlighted term in this scenario is "innovation." New Horizons stresses innovation as its core strength and encourages its employees to brainstorm and think outside the box during their allotted hours a day.
This focus on innovation is crucial for the company's success in the competitive communication and information technology industry. By constantly coming up with new ideas and solutions, New Horizons is able to stay ahead of the curve and offer cutting-edge products and services to its customers.
Moreover, the emphasis on innovation also creates a culture of creativity and collaboration within the company, allowing employees to feel empowered to contribute their ideas and expertise. Overall, New Horizons' emphasis on innovation underscores the company's commitment to growth and progress and positions it as a leader in its industry.
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The standard cost card for a company's product shows the following amounts for materials: Direct materials: 4.5kgs per unit at $3.00 per kg During a recent month, the company planned to produce 3,000 units and had the following actual operating results: a. 3,200 units were produced. b. 15,000 kg of material was purchased at a cost of $3.20 per kg. c. 1,000 kg of material was still in inventory at the end of the month (there was no opening inventory). Required: Calculate the direct material price and quantity variances. Show your work and label your variances with the name of the variance and favourable (F) or unfavourable (U). (7 marks) Material variances model analysis
OR
scroll down for formula analysis table:
The direct material price and quantity variances can be calculated as follows: 1. Direct Material Price Variance: Actual Quantity Purchased (AQp) x (Actual Price (AP) - Standard Price (SP))
2. Direct Material Quantity Variance:
Standard Price (SP) x (Actual Quantity Used (AQu) - Standard Quantity (SQ))
To calculate the direct material price variance, we need to determine the difference between the actual price per kilogram of material purchased and the standard price per kilogram. The formula for the direct material price variance is:
Direct Material Price Variance = AQp x (AP - SP)
Where:
AQp = Actual Quantity Purchased
AP = Actual Price
SP = Standard Price
In this case, the actual quantity purchased is 15,000 kg, the actual price is $3.20 per kg, and the standard price is $3.00 per kg.
To calculate the direct material quantity variance, we need to find the difference between the actual quantity used and the standard quantity allowed, multiplied by the standard price per kilogram. The formula for the direct material quantity variance is:
Direct Material Quantity Variance = SP x (AQu - SQ)
Where:
SP = Standard Price
AQ = Actual Quantity Used
SQ = Standard Quantity
In this case, the actual quantity used is 4.5 kg per unit multiplied by the number of units produced (3,200 units), and the standard quantity allowed is 4.5 kg per unit multiplied by the planned production quantity (3,000 units).
By calculating these variances, we can assess the difference between the actual costs incurred for materials and the expected costs based on the standard cost card.
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who benefits form medicare taxes?
Answer: The Medicare tax rate is 1.45% of an employee's gross income. The Medicare tax, which is a charge on both employers and employees, is paid by both.
The Government of Country Y owns and controls many businesses. "The public sector always produces goods and services more efficiently than privately owned businesses', a Government minister recently said. Other ministers disagree and want to privatize many state-owned businesses. The private sector businesses in Country Y produce 55 per cent of total output - mainly in services such as transport, tourism and finance. The secondary sector of industry produces 35 per cent of total output.
Answer:
what do i have to answer?
Explanation:
When will the Mini Toolbar appear?
when you type text
when you press the Delete key
when you select text
when you first open a file
Answer:
It is C on edge 2021
Explanation:
Answer:
(c) when you select text
Explanation:
The tool bar appears when you select text to provideoptions depending on what you would like to do with the text.
your grandmother tells you a dollar doesn't go as far as it use to. she says the "purchasing power" of a dollar is much less than it used to be. explain what she means. try to use and explain terms like inflation and deflation in your answer
Back then. A dollar was worth WAYYYYY more than it is now. back then you could buy a lollipop for a like a penny. However as time went on we went through deflation and prices went down
can someone recommend me some research topics for economics.would really appreciate if it is in a list
Explanation:
here are some research topics for economics::
1. The effect of income changes on consumer choices
2. The effect of labor force participation on the economy and budget – A comparison
3. The impact of marital status on the labor force composition: A case of [your country] economy
4. The difference in the consumption attitude in [your country] over the last decade – Critical analysis of consumer behavior trends
5. The relationship between salary levels and ‘economic convergence’ in [your country]?
6. Analyzing salary inequalities in [your country] and the forces behind such inequalities.
7. The evolution of consumption in [your country] over the last 10 years: Trends and consumer behavior.
8. Dynamics of the Gini index as a reflection of the problem of inequality in income
9. Cashless economy: The impact of demonetization on small and medium businesses
10 Privatization of Public Enterprises and its implications on economic policy and development
Unlimited wants + limited resources = what is the answer?
Answer:
People never get enough of what they want or need
Explanation:
Unlimited wants and needs are one half of the basic troubles of scarcity that has troubled humanity since the beginning of time. The other half of the scarcity problem is limited resources. The reason why we always want something is because our brains are actually made to be attracted to novelty. So, we always seek ti learn new things and experiences.
(I hope this was accurate and helpful)
Which is the most important decision factor in transportation?
A.capacity
B. Cost
C.capability
D.reliability
What do you call a website or e-mail address that is created to look like it comes
from a legitimate source? Choose the answer.
pharming
spoofing
spyware
none of the above
Answer:
this would be called spoofing.
Spoofing is called as a website or e-mail address that is created to look like it comes from a legitimate source.
What is legitimate source?
Legitimate source is defined as according to the law, something that is legal is acceptable.
It can also be defined as the electoral register is a genuine source of information that is currently available to the public.
A reputable source is defined as the one that has been written by an expert in their field and is free of errors and bias.
A trustworthy source is defined as the one that offers a detailed, well-reasoned idea, argument, or discussion based on solid evidence.
Thus, spoofing is called as a website or e-mail address that is created to look like it comes from a legitimate source.
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Which describes an investor’s primary goal of buying a loan? a. to grow a business b. to earn a profit off the interestc. to bolster the economy d. to provide capital to a business
Earning a profit best describes an investor's primary goal. So option b. is correct. Investors use different financial instruments to earn a rate of return to accomplish financial goals and objectives.
Investment securities include stocks, bonds, mutual funds, derivatives, commodities, and real estate. Investors can be distinguished from traders in that investors take long-term strategic positions in companies or projects. Investors build portfolios either with an active orientation that tries to beat the benchmark index or a passive strategy that attempts to track an index. Investors may also be oriented toward either growth or value strategies.
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Answer:
to earn a profit off the interest
Explanation:
This is typically done by lending money to a borrower at a higher rate of interest than the investor is paying on their own borrowing or invested capital, with the hope of earning a positive return on their investment over time. The key motivation behind this type of investment is to generate a return that is greater than the cost of the funds used to make the investment, so that the investor can earn a profit.
find the consumers' surplus for a product if the demand function is given by d(x)=850x 2d(x)=850x 2 and xe=26xe=26 units. round your answer to the nearest cent.
The answer to the given question about consumer surplus is 35 cents after rounding off to the nearest cent.
formula to find consumer surplus is D(x) = 850 / xe + 2. where the value of xe is given 26 units. An economic measure of consumer gains as a result of market competitiveness is called consumer surplus. Consumer surplus occurs when customers pay less for a commodity or service than they would be willing to. It's a gauge of the extra gain that consumers experience as a result of paying less than they would have otherwise. The surplus of consumers and producers can be contrasted. The basis of consumer surplus in economics is marginal utility, or the additional pleasure a customer experiences from acquiring one more unit of a good or service. Consumer surplus always increases during periods of declining prices and decreases during periods of rising prices.
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nursing is a humanitarian service give reason
Cain Company reports net cash provided by operating activities of $35,000. It also reports the following information under “Adjustments to reconcile net income to net cash provided by operating activities” on its statement of cash flows (using the indirect method).
It can be seen from the solutions given that Cain's net income is $24,000.
Here is the solution:Net income = Net cash provided by operating activities - Adjustments
= $35,000 - $6,000 - $10,000 + $4,000 + $7,000 + $4,000
= $24,000
Therefore, Cain's net income is $24,000.
Here is a breakdown of the adjustments:
To determine cash flow from operations, it is necessary to include the gain on equipment sales in the net income as it is a non-cash entry.
A rise in accounts receivable implies that customers are prolonging payment of their invoices, resulting in decreased cash flow from the company's activities.
The depreciation expense is classified as a non-cash expense, hence it must be included in the calculation of cash from operations by adding it back to the net income.
A decrease in inventory indicates that the company is experiencing faster turnover of its inventory, leading to increased cash flow generated by its operations.
A rise in prepaid expenses denotes that the company is channeling more funds towards prepaid expenditures like insurance and rent, implying a reduced cash inflow from its operational activities.
A decline in the amount of wages that the company owes indicates that it is not promptly compensating its workforce. Consequently, this implies that the company's operational cash flow is reduced.
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when making deferral adjustments to record the amount used during the period for items such as prepaid insurance or supplies, the debit will a(n) ___________ account. (enter one word per blank.)
When making deferral adjustments to record the amount used during the period for items such as prepaid insurance or supplies, the debit will be an Expense account.
What are deferral adjustments?Deferral adjustments are accounting entries that shift some portions of a deferred account into the current period.
These deferral journal entries include:
Revenue entries (recognizing current or earned revenues)Expenses entries (recognizing current or incurred expenses against prepayments).Thus, when making deferral adjustments to record the amount used during the period for items such as prepaid insurance or supplies, the debit will be an Expense account.
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What is the act of gathering information relative to a company's action and the factors that affect the space in which the company operates?
Less need for policy manuals, organization charts, and formal controls is a sign of shared values in a:
Multiple choice question.
corporate culture where there is little trust
corporate culture that doesn't empower employees
negative corporate culture
corporate culture that emphasizes service to others
An organization which preaches empathy and hence instills a cultural value which resonates around togetherness will show low levels of harsh and formal control and flexible policies.
When an organization shows less need for policy manuals, then it exhibits its level of flexibility and accommodation. Being less rigid in terms of being bent on formal guidelines and principles is a sign that the organization is empathic and promotes service to others. Such corporate policy framework is positive and hence, shows the orgainiziation's commitment towards social inclusion.Learn more : https://brainly.com/question/14378811?referrer=searchResults
Answer: corporate culture that emphasizes service to others
how companies collude in South Africa
Collusion among companies in South Africa is an illicit practice of working together, often in secret, to increase their profits at the expense of consumers. Collusion typically takes the form of price fixing, where businesses agree to set prices at an artificially high level, or bid rigging, where companies agree to submit inflated bids for contracts.
Companies can collude in various ways in South Africa. First, firms can engage in cartel agreements, where they agree on pricing and output. This results in reduced competition and higher prices. Second, firms can engage in bid rigging, where they collude to manipulate the tendering process. This results in inflated contract prices and reduced competition. Third, firms can engage in market sharing, where they agree to divide up the market among themselves. This results in reduced competition, increased prices, and less choice for consumers.
Collusion is illegal in South Africa under the Competition Act 89 of 1998. The Act aims to promote competition in the South African market and prevent anti-competitive behavior. Companies that are found guilty of collusion can face hefty fines and legal action. Additionally, individuals who are found guilty of collusion can be imprisoned for up to 10 years.
In conclusion, collusion among companies in South Africa is a serious problem that reduces competition and harms consumers. It is important for companies to compete fairly and abide by the Competition Act to ensure a level playing field for all businesses and a fair deal for consumers.
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Which of the following is a reason that your company might not want to increase its market share?
A.
The market saturation for your product is low.
B.
Many of your company's competitors have bad reputations.
C.
Your company has a limited capacity for producing your product.
D.
The price of your product is very competitive.
Answer:
C: Your company has a limited capacity for producing your product.
Explanation:
hope this helps!
Define the mergers and acquisitions of Tesla and define what has the company gained?
profit represents Excess of revenue over expenses true or false
Answer:
true
Explanation:
it express that thing
Final assembly of each Widget has a PHC of $30. There are two subassemblies that make up each widget. Subassembly 1 has a PHC of $15 and requires 2 units of Part# 1146 with PHC of $16 and material cost of $12 each, 1 unit of Part# 1257 with PHC of $5 and material cost of $3 each, and 4 units of Part# 1389 with PHC of $15 and material cost of $1.50 each. Subassembly 2 has a PHC of $12 and requires 3 units of Part# 2146 with PHC of $15 and material cost of $14 each, 1 unit of Part# 2267 with PHC of $5 and material cost of $3 each, and 4 units of Part# 2379 with PHC of $15 and no material cost. a. Draw a costed BOM tree for this product. b. Determine the price for the product if the markup is 60%.
The price for the product, with a 60% markup, is $76.80.
To determine the price for the product, we start with the final assembly, which has a production hour cost (PHC) of $30. This cost includes the costs of the two subassemblies that make up each widget.
Subassembly 1 has a PHC of $15 and requires 2 units of Part# 1146, which has a PHC of $16 and a material cost of $12 each. It also requires 1 unit of Part# 1257, with a PHC of $5 and a material cost of $3, and 4 units of Part# 1389, with a PHC of $15 and a material cost of $1.50 each.
Subassembly 2 has a PHC of $12 and requires 3 units of Part# 2146, which has a PHC of $15 and a material cost of $14 each. It also requires 1 unit of Part# 2267, with a PHC of $5 and a material cost of $3, and 4 units of Part# 2379, which has a PHC of $15 and no material cost.
By calculating the total costs of each component and adding them up, we obtain the total production cost for one widget. With a 60% markup, we can calculate the selling price as $76.80.
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An online clothing boutique decides to install a web or Internet cookie in the browser of each user who visits its site. The purpose of the cookie is to remember information about the user and help monitor-browsing patterns on their site and others. This enables the boutique's website to suggest products to the customer that match their browsing history. This is:
Answer:
a practice that may have longer term implications on the ethics of personal privacy
Explanation:
Cookies are a tool that is used on websites to identify user browser history.
The information on a user's browsing habits is then used by businesses to tailor display information relevant to what they are usually interested in.
Usually they are a safe way to improve browsing experience, but they can be used by criminals to spy on people and gain unwanted access to their data.
Cookies save information about a user session by storing data like usernames.
There is a long term danger of having one's browsing history tracked without their consent
PLEASE HELP!!!
4. Match the correct term with its definition.
1. equilibrium price point
2. price
3. surplus
4. equilibrium point
5. shortage
is sunnly
a. the sum of money necessary to purchase a good or service.
b. point of the supply curve prior to the equilibrium price
c. point of the demand curve prior to the equilibrium Price
d. quantity demanded of a product is equal to the quantity supplied at that price
e. point where supply and demand exactly cross each other
Answer:
1. equilibrium price point: e. point where supply and demand exactly cross each other
2. price: a. the sum of money necessary to purchase a good or service
3. surplus: d. quantity demanded of a product is equal to the quantity supplied at that price
4. equilibrium point: d. quantity demanded of a product is equal to the quantity supplied at that price
5. shortage: b. point of the supply curve prior to the equilibrium price
Explanation:
Note: "sunnly" does not appear to be a term related to economics or this question, so I could not match it with a definition.
The given items can be correctly matched as follows - 1) equilibrium price point - e. point where supply and demand exactly cross each other, 2) price - a. the sum of money necessary to purchase a good or service, 3) surplus - the quantity supplied of a product exceeds the quantity demanded at a given price, 4) equilibrium point - d. quantity demanded of a product is equal to the quantity supplied at that price, shortage - the quantity demanded of a product exceeds the quantity supplied at a given price.
What is equilibrium price point?The equilibrium price point is the point at which the quantity of goods or services supplied is equal to the quantity of goods or services demanded, resulting in market stability. At this price, there is no shortage or surplus of goods or services in the market, as the supply and demand are in balance.
Price is the sum of money necessary to purchase a good or service. Surplus refers to refers to the production or supply of goods or services that exceed demand. Equilibrium point is the point where the supply and demand for a product or service are balanced. Shortage refers to a situation where the demand for a product or service exceeds the available supply.
Hence, the given items can be correctly matched as follows - 1) equilibrium price point - e. point where supply and demand exactly cross each other, 2) price - a. the sum of money necessary to purchase a good or service, 3) surplus - the quantity supplied of a product exceeds the quantity demanded at a given price, 4) equilibrium point - d. quantity demanded of a product is equal to the quantity supplied at that price, shortage - the quantity demanded of a product exceeds the quantity supplied at a given price.
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Select the scenario that best demonstrates the entrepreneurial mindset of taking initiative and
being self-reliant
A. Jon starts a café in his town. He observes that due to a drop in the economy, his café is not doing as well as expected. He hopes his business will pick up again once the economy is strong again.
B. Linda is developing a music app. However, she gets stuck many times while
writing the code. She considers giving up on her app and working under an
experienced person to develop apps.
C. Samantha works as a nail artist. To keep up with the competition and customer
demands, she expands her skill set with new techniques and designs in the market.
D. Steve works as a pizza delivery boy, but wants to start his own pizza parlor. It
will be difficult to make time to implement his business plan, so he is going to wait
for a better time to start his business.
Answer:
c.Samantha works as a nail artist. To keep up with the competition and customer
demands, she expands her skill set with new techniques and designs in the market.
Explanation:
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when effective leaders hear others complaining about a problem, which action would they most likely take?
When effective leaders hear others complaining about a problem, THE action would they most likely take is: To try to learn how big the problem really is.
Who is a leader?A leader is person that possess a leadership skills and help to direct and lead the people that are under him/her.
An effective Leaders does not ignore problems but they tend to learn how big the situation and try to figure and solve it.
Therefore the action would they most likely take is: To try to learn how big the problem really is.
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ECON QUESTION !!
What is the overall objective of a business raising financial capital?(1 point)
A) decrease operating costs and increase the number of investors
B) increase revenues and the number of investors
C) reducing financial obligations and increase revenue
D) grow and increase profit
chapter 5 test, banking and finance...if you have all the answers that would be greatly appreciated
The main goal is to increase shareholder value as much as possible.
Businesses frequently make decisions that include spending money now while planning to turn a profit later. Examples are when a business purchases a machine with a 10-year lifespan, constructs a new facility with a 30-year lifespan, or launches a research and development initiative. Four basic methods exist for businesses to obtain the funding they require to fund these initiatives: (1) early-stage investors; (2) profit reinvestment; (3) bank or bond borrowing; and (4) stock sales. Business owners decide how to pay for financial capital sources when they select those sources.
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Which of the following is a consumer nondurable a ... is a consumer nondurable?(A)swimming pool(B)dishwasher(C)laptop computer(D)breakfast cerea
Option (D) breakfast cereal, as it is a product that is consumed relatively quickly and does not have a long shelf life.
Consumer nondurables are products that are intended for immediate or short-term use and are typically replaced frequently. This can include items such as food, beverages, personal care products, and cleaning supplies. Swimming pools, dishwashers, and laptop computers are all examples of consumer durables, as they are intended to last for an extended period of time and are not typically replaced frequently.
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The demand for this type of good rises when income falls and falls when
income rises.
O substitutes
o inferior
O normal
O complements
Answer:
o inferior
Explanation:
The inferior goods shown the inverse relationship between the demand and the income. If the demand of the goods is increased so the income would fall and if the demand of the goods fall so the income would rises
So this represent that the good is an inferior good
Hence, the second option is correct