Determine whether each statement describes the income effect, the substitution effect, or neither. Assume that all other variables are held constant a. The price of lobster doubles, making Henri feel less wealthy. As a result, Henri buys fewer lobsters. a b. The price of chicken falls by 50.75 a pound. Since chicken is now relatively less expensive than ground beef. Mary buys more chicken and less beef c. The average price of a DVD falls by 15 percent. Tom buys more DVDs because his monthly movie budget can now stretch further.
Answers
The given situation describes the income effect, substitution effect, or neither is shown below:
a. Income effect
b. Substitution effect
c. Neither
Let us now understand the concepts of the income effect and the substitution effect.
Income Effect:
It is a change in demand for a good or service due to a change in the purchasing power of the customer's income. It is also known as a change in the real income of the consumer.
When the price of a good or service rises, the consumer's real income decreases because they must devote more of their income to the good or service. Similarly, when the price of a good or service decreases, the consumer's real income increases because they can spend less on the good or service and more on other things.
Substitution Effect:
It occurs when a change in the price of a good or service induces consumers to switch to a substitute product. It reflects the fact that consumers will purchase more of a good when its price decreases relative to other goods, and they will purchase less of it when its price increases relative to other goods. Hence, consumers look for alternatives that can fulfill their needs and are relatively cheaper to substitute.
Neither: No effect occurs due to a change in the price of a good or service.
Therefore, neither the income effect nor the substitution effect occurs when the average price of a DVD falls by 15%. Therefore, the given situation describes the income effect, substitution effect, or neither is shown below:
a. Income effect
b. Substitution effect
c. Neither:
a. The price of lobster doubles, making Henri feel less wealthy. As a result, Henri buys fewer lobsters. - Income effect
b. The price of chicken falls by 50.75 a pound. Since chicken is now relatively less expensive than ground beef. Mary buys more chicken and less beef - Substitution effect
c. The average price of a DVD falls by 15 percent. Tom buys more DVDs because his monthly movie budget can now stretch further. - Neither
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Related Questions
Name three factors that determine a good’s or service’s elasticity.
Answers
Answer:
Many factors determine the demand elasticity for a product, including price levels, the type of product or service, income levels, and the availability of any potential substitutes. High-priced products often are highly elastic because, if prices fall, consumers are likely to buy at a lower price.
Explanation:
Answer:
(1) availability of substitutes(2) if the good is a luxury or a necessity, (3) the proportion of income spent on the good, and(4) how much time has elapsed since the time the price changed.Price skimming works best for which type of product?
A. Products that haven't been advertised much
B. Inexpensive products with many competitors
C. Products with elastic demand
D. High-end products with unique features
Please select the best answer from the choices provided
Ο Α
ОВ
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Mark this and return
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Answer:
d. high-end products with unique features
Explanation:
did the test and got it right on edg2021
What effect do communication skills have on ability to pursue
Answers
Answer:
you. dummy joking I. don't know
The _____ risk has been encountered if a business has no answer to fight back against its competition.
financial
operational
compliance
strategic
Answers
When a business is unable to fight back against its competitors effectively, then a strategic risk has been encountered.
What is a strategic risk?This refers to the risk that the strategies of a business will not allow it to be competitive in the market.
When competitors come up with new processes and a business is unable to match them, this is therefore strategic risk.
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list four reasons a stock will go up.
Answers
various reasons for the change in the price of the stock.
a)Market belief toward the stock.
b)Market belief toward the industry.
c)Market belief toward the stock market.
d)Confidence in the economy.
If there is an enormous number of buyers than sellers (more demand), the buyers bid up the prices of the stocks to attract sellers to sell more.
the better optimistic investors are about a company's prospects or the ability for positive developments, the more likely they are to wish for the stock.
Anything from a public connections crisis to breaking company news could affect a stock’s price. Quarterly earnings reports can cause the stock market to both dip and increase.
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Fujita, Incorporated, has no debt outstanding and a total market value of $240,900. Earnings before interest and taxes, EBIT, are projected to be $40,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 14 percent higher. If there is a recession, then EBIT will be 25 percent lower. The company is considering a $130,000 debt issue with an interest rate of 7 percent. The proceeds will be used to repurchase shares of stock. There are currently 7,300 shares outstanding. The company has a tax rate of 23 percent, a market-to-book ratio of 1.0, and the stock price remains constant. a-1. Calculate earnings per share (EPS) under each of the three economic scenarios before any debt is issued. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) a-2. Calculate the percentage changes in EPS when the economy expands or enters a recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b-1. Calculate earnings per share (EPS) under each of the three economic scenarios assuming the company goes through with recapitalization. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b-2. Given the recapitalization, calculate the percentage changes in EPS when the economy expands or enters a recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) a-1. Recession EPS a-1. Normal EPS a-1. Expansion EPS a-2. Recession percentage change in EPS a-2. Expansion percentage change in EPS b-1. Recession EPS b-1. Normal EPS b-1. Expansion EPS % % % % a-1. Recession EPS a-1. Normal EPS a-1. Expansion EPS a-2. Recession percentage change in EPS a-2. Expansion percentage change in EPS b-1. Recession EPS b-1. Normal EPS b-1. Expansion EPS b-2. Recession percentage change in EPS b-2. Expansion percentage change in EPS % %
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In April, Jenkins Company used a job order cost system with overhead applied to jobs based on direct labor hours. Three jobs were worked on during the month, with Job A completed and delivered to the customer, Job B completed but not sold, and Job C started but not completed.
To determine the applied manufacturing overhead for each job, we can use the predetermined overhead rate of $15 per direct labor hour and the number of direct labor hours worked on each job. For Job A, the total direct labor hours were 490 (9,800/20), and the applied overhead is $7,350 (490 x $15). For Job B, the total direct labor hours were 390 (7,800/20), and the applied manufacturing overhead is $5,850 (390 x $15). For Job C, the total direct labor hours were 145 (2,900/20), and the applied manufacturing overhead is $2,175 (145 x $15).To calculate the balance in the manufacturing overhead account at the end of April, we need to add the applied manufacturing overhead costs for each job and subtract the actual overhead costs incurred. As we do not have information on the actual overhead costs incurred during the month, we cannot determine the balance in the manufacturing overhead account.The Work-in-Process account's balance at the end of April can be calculated by adding the total costs of the jobs in process on April 1, the direct materials used, the direct labor costs, and the applied manufacturing overhead for each job. The total cost of Job A was $21,600 ($11,900 + $1,900 + $9,800 + $7,350), and the total cost of Job B was $15,850 ($1,200 + $7,800 + $7,800 + $5,850). The cost of Job C, which is incomplete, is not included in the calculation. Therefore, the balance in the Work-in-Process account at the end of April is $37,450 ($21,600 + $15,850).
To calculate the balance in the Finished Goods account, we need to add the total cost of completed jobs to the balance in the Work-in-Process account and subtract the cost of goods sold. As Job A was completed and delivered to the customer, its total cost of $21,600 is included in the calculation. Job B was completed but not sold, so its total cost of $15,850 is not included in the calculation. Since no jobs were sold during April, the cost of goods sold is $0. Therefore, the balance in the Finished Goods account at the end of April is also $21,600.
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if u.s. produced goods become more expensive than foreign-produced goods, imports will ________. at the same time, exports will ________.
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If u.s. produced goods become more expensive than foreign-produced goods, imports will increase . At the same time, exports will decrease.
Import goods are goods that are brought into the US from foreign countries. Export goods are goods that are sold by the US to foreign countries.
When the price of a good is higher than it was before, the demand for the good will decrease. On the other hand, if the price of the good decreases, the demand for the good would increase. This is why the demand curve is downward sloping.
If US produced goods become more expensive when compared with foreign- produced goods, the demand for US goods will decrease and the demand for foreign made goods will increase. This will lead to an increase in import and a decrease in export.
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A Roth Individual Retirement Account allows you to draw a fixed amount that is not taxed. The maximum amount that an individual can contribute annually to a Roth IRA is $5,000. Determine the future value of such an account given that the annual percent rate is 1. 2%, and an annual payment of $2,675. 32 is made at the end of each year for 30 years. Round to the nearest cent. A. $95,245. 67 b. $95,340. 91 c. $97,074. 97 d. $95,923. 88.
Answers
Since the deposit is made at the end of each year, the relevant formula to use is the formula for calculating the Future Value (FV) of an Ordinary Annuity stated as follows:
FV = M * (((1 + r)^n - 1) / r) ................................. (1)
Where:
FV = Future value after 30 years = ?
M = Annual payment = $2,675.32
r = Annual interest rate = 1.2%, or 0.012
n = Number of years = 30
Substituting the values into equation (1), we have:
FV = $2,675.32 * (((1 + 0.012)^30 - 1) / 0.012)
FV = $2,675.32 * 35.8551048895342
FV = $95,923.88
Therefore, the future value of such an account d. $95,923. 88.
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this is the premium added as a compensation for the risk that an investor will not get paid in full.Component =____?
Symbol = ____?
Answers
The premium for liquidity risk, or the possibility that an investment won't get full payment, is added. Component: default risk premium Sign: DRP
What is a premium for liquidity risk?The increased return that investors anticipate for non-easily traded instruments is known as the "liquidity premium." As a result, it is difficult to sell it for a fair price in the financial market and turn the proceeds into cash. Liquidity premium and illiquidity premium are phrases that can be used interchangeably because they both refer to the same thing.
Hence, if a potential investor is considering a long-term investment, they are eligible to get an additional premium. The most popular and frequently studied investment strategy among investors is the yield curve.
Many forms of bonds, including municipal bonds, corporate bonds, and bonds (corporate bonds) with various credit ratings, such as BB Rated Corporate Bonds or AAA Corporate Bonds, can have these yield curves constructed and displayed.
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Search engines generate revenue through pay-per-click (each time a user clicks a link to a retailer’s website); pay-per-call (each time a user clicks a link that takes the user to an online agent waiting for a call); or pay-per-conversion (each time a website visitor is converted to a customer)
Answers
Answer:
pay-per-click (each time a user clicks a link to a retailer’s website).
Explanation:
Pay-per-click is the cost stipulated by online survey platforms for each click on a sponsored ad.
Popularized by Google AdWords, this is one of the most used metrics for digital marketing, mainly because of the ease of having measurable digital advertising efforts.
The great advantages of this metric is the possibility of measuring and monitoring the number of users who will click on your link, making it more effective to analyze the impact that your business media has on people.
CEO John Barron said that time management is a really important factor in an interview because showing up on time tells the employer:
CEO John Barron said that time management is a really important factor in an interview because showing up on time tells the employer:
that the employee will bring coffee and donuts every Friday.
that the employee cares about their social media account.
that the employee took the bus to get to work.
what the employee will be like if they actually join the company.
Answers
CEO John Barron said that time management is a really important factor in an interview because showing up on time tells the employer what the employee will be like if they actually join the company.
What type of leadership style is used when a leader solicits suggestions and input from employees during the decision-making process?
A leadership style that is democratic or participative. The democratic style (also known as the "participative style") is a hybrid of autocratic and laissez-faire leadership. A democratic leader solicits and considers feedback from their team before making a decision.
This approach is known as the contingency theory of leadership because the best style depends on the situation. One of the first contingency theories of leadership was developed by Fred Fiedler.
Therefore, CEO John Barron says that time management is a really important factor in an interview.
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Last year, diana’s boss promised her a big bonus if she met her goals. At the end of the year, after diana had exceeded her goals, she found her bonus was very small. In the future, diana’s _____ will probably be ____.
Answers
Answer:
Brainliest pls
Explanation:
instrumentality; low
why will the wages for apple pickers increase?
Answers
Answer:An increase in the demand for apples increases the demand for the labor force also increasing the prices for the apples. This results in an increase in wage for apple pickers due to work increment.
Explanation:pls braliant my answer
Sam Malone is considering renovating the bar stools at Cheers. The production function for new bar stools is given by q=0.160208 where q is the number of bar stools produced during the renovation week, k represents the number of hours of bar stool lathes used during the week, and I represents the number of worker hours employed during the period. Sam would like to provide 10 new bar stools, and he has allocated a budget of $10,000 for the project a. Sam reasons that because bar stool lathes and skilled bar stool workers both cost the same amount (550 per hour), he might as well hire these two inputs in equal amounts. If Sam proceeds in this way, how much of each input will he hire and how much will the renovation project cost? b. Norm (who knows something about bar stools) argues that once again Sam has forgotten his microeconomics. He asserts that Sam should choose quantities of inputs so that their marginal (not average) productivities are equal. If Sam opts for this plan instead, how much of each input will he hire and how much will the renovation project cost? c. Upon hearing that Norm's plan will save money, Cliff argues that Sam should put the savings into more bar stools in order to provide seating to more of his USPS colleagues. How many more bar stools can Sam get for his budget if he follows Cliff's plan? d. Carla worries that Cliff's suggestion will just mean more work for her in delivering food to bar patrons. How might she convince Sam to stick to his original 10-bar stool plan? Exper
Answers
Sam Malone is considering hiring bar stool lathes and skilled workers in equal amounts, Norm suggests choosing input quantities based on marginal productivities, Cliff proposes using savings, and Carla raises concerns.
If Sam hires bar stool lathes and skilled bar stool workers in equal amounts, he will hire 10 hours of each input. Since both inputs cost $550 per hour, the total cost of the renovation project will be $11,000 (10 hours x $550/hour for each input).
b. According to Norm's suggestion, Sam should choose input quantities where their marginal productivities are equal. The given production function q = 0.160208 implies that the marginal productivity of bar stool lathes (MPk) is 0.160208 and the marginal productivity of worker hours (MPI) is also 0.160208. To achieve a target output of 10 bar stools, Sam would need to hire 62.38 hours of bar stool lathes and 62.38 worker hours. The total cost of the project would then be $34,309.
c. If Sam follows Cliff's plan, he can use the savings from the project cost to provide more bar stools. The exact number of additional bar stools he can get would depend on the cost per bar stool and the remaining budget after accounting for the input costs. This information is not provided in the given scenario.
d. Carla's concerns about increased workload can be addressed by emphasizing the efficiency and manageability of the original 10-bar stool plan. Sam can explain that sticking to the planned project will ensure a manageable workload for Carla in delivering food to the bar patrons, avoiding potential strains on operations and maintaining quality service.
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The birthrate in the U.S. increases by 20%. Download the graph below and illustrate what will happen to supply and demand for college educations. Illustrate and label on the graph any shifts in supply or demand. Your labels should include D1, D2, S1, S2, E1, E2, and E3.
Answers
Because the birthrate in the U.S. increases by 20%, then, the supply and demand for college educations will increase significantly to the uptrend.
What is the supply and demand for college educations?The supply indicates the provision of college education by the schools while the demand indicates the willingness of more people to get college education.
As the birthrate increase, the demand for college educations will increase as well, thereby, increasing the supply for college educations.
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When people are in debt, it means there is no income
True or false?
Answers
Will the grading period effect what college you will go to later on?
A (True)
B (False)
Answers
Answer: A
Explanation:
Answer:
NO
Explanation:
Novak Corp. Has accounts receivable of $90,300 at March 31, 2022. Credit terms are 2/10, n/30. At March 31, 2022, there is a $2,284 credit balance in Allowance for Doubtful Accounts prior to adjustment. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The company's estimates of uncollectibles are as shown below.
Answers
Answer:
Allowance for doubtful accounts balance as at March 31st 2022 is $10,056.
Explanation:
Novak Corp. already have a balance of $2,284 in allowance for doubtful account.
The increase in allowance for doubtful account is calculated as follows.
$61,700 * 2% = $1,234
$12,600 * 5% = $630
$9,200 * 28% = $2,576
$6,800 * 49% = $3,332
Total = $7,772
$7,772 + $2,284 = $10,056
suppose gdp is $10 billion, consumption expenditure is $7 billion, investment is $2 billion, and government expenditures on goods and services is $2 billion. net exports of goods and services must be
Answers
net exports of goods and services must be -$1 billion implying that the country has a trade deficit.
How to calculate net exportTo determine the net exports of goods and services, we can use the following equation:
GDP = C + I + G + NX
where
GDP is the gross domestic product,
C is the consumption expenditure,
I is the investment, G is the government expenditures on goods and services, and
NX is the net exports of goods and services.
Substitute the given values, in the equation
$10 billion = $7 billion + $2 billion + $2 billion + NX
NX = $10 billion - $7 billion - $2 billion - $2 billion
= -$1 billion
Since the value of NX is negative, this means that the country has a trade deficit, i.e., its imports of goods and services are greater than its exports of goods and services.
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name the liability under which the private assets minus the private liabilities of a partner are liable to pay the liabilities of the firm
Answers
Answer:
Limited Liability
Explanation:
One of the disadvantages of forming a Partnership is the issue of Limited Liability.
Limited Liability means that Partners are liable for the debts of the company to the extent of their investment in a partnership arrangement.
Imagine you want to be a fashion designer. Outline the steps you would need to take to pursue this career.
Answers
Answer:
take to pursue this career.
Explanation:
What is one method that helps control online fraud? O A. Deleting odd emails before reading B. Reporting odd emails to police • C. Reporting odd emails as spam • D. Signing into email in many locations
Answers
Answer: C. Reporting odd emails as spam
Explanation:
the gulp convenience store chain buys new soda machines for $450,000 and pays $50,000 for installation costs. one-half of the total cost or $250,000 is paid in cash; a note in the amount of $250,000 is signed. how should the company record this transaction?
Answers
In accounting, to record the given transaction of the Gulp Convenience Store chain, the company should use the following journal entry:
Debit: New Soda Machine - $450,000
Credit: Cash - $250,000
Credit: Notes Payable - $250,000
Debit: New Soda Machine - $450,000Credit: Cash - $250,000Credit: Notes Payable - $250,000
Transaction:
Gulp Convenience Store buys new soda machines for $450,000 and pays $50,000 for installation costs.
One-half of the total cost or $250,000 is paid in cash; a note in the amount of $250,000 is signed.
How should the company record this transaction?Note: The debit and credit amounts should be equal.
Journal Entry:
New Soda Machine$450,000 Debit
Cash$250,000 Credit
Notes Payable$250,000
Hence, the correct answer is as follows:
Debit: New Soda Machine - $450,000
Credit: Cash - $250,000
Credit: Notes Payable - $250,000
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Derek's team is struggling to come to a consensus because several people are unwilling to share their thoughts. What would be the BEST question for the group to ask themselves to avoid groupthink?
Question 3 options:
How is this situation similar to others we've encountered?
What about the group could be making people feel unsafe?
How would this situation look different if we had more money?
Can we get rid of the people who aren't willing to speak up?
Answers
If the team is struggling to come to a consensus because several people are unwilling to share their thoughts. The BEST question for the group to ask themselves to avoid groupthink is: B) What about the group could be making people feel unsafe?
What is groupthink?Groupthink refers to the way in which members of a group accepts
the decisions made in the group even if the decision they all accepted will have a negative effect on them as they do not consider the consequence that is attached to the conclusion they reach and they does this so as to be in one accord or for unity to reign among them.
Based on the given scenario it is advisable that the leader of the group to ask the members the reason why they feel unsafe to shares their thought or what they have on the mind as by doing this will help to give them insight about the reason why the members are unwilling to share their thought as well how to combat that feelings.
Therefore the correct option is B.
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Answer: What about the group could be making people feel unsafe?
Explanation: I took the quiz
when a shareholder of limited, inc. sells its shares to another investor on the stock exchange, limited, inc.'s accounting equation . multiple choice question. is not affected because the corporation is separate from its owners is not affected because of the cost principle will show a decrease in total assets and total stockholders' equity will show an increase in total assets and total stockholders' equity
Answers
When a shareholder of Limited, Inc. sells its shares to another investor on the stock exchange, Limited, Inc.'s accounting equation is not affected because the corporation is separate from its owners.
The accounting equation states that assets equal liabilities plus stockholders' equity. When shares are bought or sold on the stock exchange, it involves a transfer of ownership between investors and does not impact the company's assets or liabilities directly. The accounting equation reflects the financial position of the company, and while changes in stockholders' equity may occur due to profits or losses, the act of buying or selling shares does not directly affect the equation. The accounting equation remains balanced as the corporation's financial position is separate from the actions of its owners in the stock market
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You buy a used car for $18,000. You were given 3% interest over 3 years. What is your
monthly payment?
Answers
Answer:
$545
Explanation:
The total amount of interest to be paid is obtained by the formula.
I= p x r x t,
Where I= interest
P= principal amount
R= interest rate
T= time
In this case
I= $18,000 x 3/100 x 3
I= $18,000 x 0.03 x 3
I=$18,000 x 0.09
Interest paid will be $1,620
Total amount to be repaid is the principal amount plus interest
=$18,000 + $1,620
=$19,620.
The amount of $19,620 will be repaid in 3 years( 36 months)
monthly payment will be
=$19,620 /36
=$545
Monthly repayments will be $545
3) What is the present value of $1000, received at the end of 4 years of investment, with a discount rate of 4%?
Answers
Answer:
$854.81
Explanation:
The formula for calculating the present value is as below
PV = FV/( 1 + r)^n
Where Fv =1000
r = 4% or 0.04
n= 6
PV = $1000/ (1 + 4/100)^4
PV=$1000/(1 + 0.04)^4
PV=$1000/1.16985
PV =$854.81
.
Answer:
3629.9
Explanation:
I just did the test and thats what it told me the correct answer was.
The degree to which firms should segment their markets depends on the balance the firm wants to achieve between the added perceived customer value that segmentation can offer and its ___________.
Answers
Answer:
Cost
Explanation:
SEGMENTATION can be defined as the process or ways of dividing or segmenting business market into groups or parts based on the types of features or characteristics they shared which is why MARKET SEGMENTATION is important and vital to company or organisation because it enable them to easily target the people or individual that are likely to be satisfied with their product.
Hence, For a firm, company or organisation to segment their markets it will depends on the balance that the company or organisation wants or desire to achieve between the customer value that the market segmentation can offer and its COST.
Promotional discounts are given to stores by manufacturers to place their products in preferred locations in the store and to display their products in a ski manufacturer sells a local ski shop 35 pairs of their new store window: skis for $7000, which is a discount of $2,625. What is the percentage of the discount given to the store? (Round your answer to the nearest whole percent.)
Answers
Answer:
27%
Explanation:
The ski was sold for $7,000 which has a discount of $2,625.
the price before discount is
= $7,000 + $2,625.
=$9,625
the discount as a percentage
=$2,625 / $9,625 x 100
=0.272727 x 100
=27.27%
=27%
QUESTION 1 of 10: Which of the following is NOT a type of store layout?
O a) Spine
Ob) Runway
O c)
c) Loop
Od) Grid
Submit
Answers
The term that is not a type of store layout is b) Runway.
What is store layout?Store layout refers to the physical arrangement of products, fixtures, and other elements within a retail space. The layout is designed to maximize sales and customer satisfaction by creating an environment that is easy to navigate, visually appealing, and conducive to making purchases.
Store layout can include the placement of product displays, signage, shelves, aisles, checkout counters, and other elements. The layout is often designed to guide customers through the store in a specific pattern, with key products strategically placed along the way to encourage sales.
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