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KatRina [158]
2 years ago
9

The income effect, the substitution effect, and diminishing marginal utility together explain:______.

Business
1 answer:
lorasvet [3.4K]2 years ago
3 0

The income effect, the substitution effect, and diminishing marginal utility together explain the Downsloping Demand Curve.

The Downsloping Demand Curve is explained by each of them. Because marginal utility decreases as more of a thing are consumed, a consumer's demand curve for that product slopes downward.

Income Effect: The change in demand for a good or service brought on by a shift in a consumer's purchasing power as a result of a change in real income is known as the income effect.

Substitution Effect: The substitution impact is the decline in sales of a product brought on by customers switching to less expensive substitutes when the price of the product increases.

Diminishing Marginal Utility: The phenomenon known as diminishing marginal utility describes how each extra unit of gain results in an ever-smaller rise in subjective value.

The income effect, the substitution effect, and diminishing marginal utility together explain the Downsloping Demand Curve.

To learn more about the above topics, visit the following link:

brainly.com/question/14397364

#SPJ4

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7 0
3 years ago
What type of supply chain configuration is most appropriate if your organization needs to minimize inbound transportation costs,
pochemuha

Answer:

centralized suplly chain

Explanation:

Decentralize supply chain processes can be defined as processes that must be performed in the plant because they involve physical interaction with the material. There processes are the ones where the decision-making is ‘localized’.  It involves supply chain managers, planners, manufacturing teams, health and safety team and possibility trade management folks.

3 0
4 years ago
Employers must send the
Evgesh-ka [11]

Answer: Employers must send the  <u>W2 form</u> to the Internal Revenue Service (IRS) at the end of the year.

The Wage and Tax statement, more commonly known as the W2 form, must be filed by the employers with the IRS by 31st January, irrespective of whether it’s being filed manually (on paper) or electronically.

The employees must also mail or make arrangements to send the W2 form to their employees by the same date.

6 0
3 years ago
Suppose France can produce four phones or three computers with one unit of labor, and Sweden can produce one phone or two comput
Fynjy0 [20]

Answer:

France should specialize in producing phones and import computers from Sweden

Explanation:

France can produce: 4 phones or 3 computers

The opportunity cost of producing 1 phone = (3 ÷ 4)

                                                                        = 0.75 computers

The opportunity cost of producing 1 computer = (4 ÷ 3)

                                                                        = 1.33 phones

Sweden can produce: 1 phone or 2 computers

The opportunity cost of producing 1 phone = (2 ÷ 1)

                                                                        = 2 computers

The opportunity cost of producing 1 computer = (1 ÷ 2)

                                                                        = 0.5 phones

According to the comparative advantage,

Sweden has a comparative advantage in producing computers because the opportunity cost of producing computers is lower for Sweden than for France.

France has a comparative advantage in producing phones because the opportunity cost of producing phones is lower for France than for Sweden and import computers from Sweden because Sweden has a comparative advantage in producing computers.

7 0
3 years ago
9. Mackenzie PLC is considering expanding a production line. The new equipment for the line will cost $255,000. In addition, the
NNADVOKAT [17]

Answer:

Net Present Value = $59,632.78

Explanation:

<em>The net present value NPV) of a project is the present value of cash inflow less the present value of cash outflow of the project. </em>

<em>NPV = PV of cash inflow - PV of cash outflow </em>

Present value of cash inflow:

65,000 × (1.09375)^(-1) + 98000 ×(1.09375)^(-2)+ 126,000 ×(1.09375)^(-3)+  132,000 × (1.09375)^(-4)= 326882.7792

PV of annual maintenance cost :

=1,500 × (1- 1.09375^(-4))/0.09375

=4819.84773

NPV = 26882.7792  - 4819.84773 - (255,000+12250)

= 59,632.78

8 0
3 years ago
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