Which of the following goods is likely to have an income elasticity of demand greater than one?

The interest rate effect operates through

A) labor supply. B) government spending levels. C) the purchasing power of individuals' checking accounts. D) credit markets by changing borrowing costs.

Laura's Pizza Place incurs $800,000 per year in explicit costs and $100,000 in implicit costs. The restaurant earns $1.3 million in revenues. Based on this information, what is the accounting profit for Laura's Pizza Place?

A) $200,000 B) $400,000 C) $500,000 D) $900,000