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2 years ago

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

1 answer:

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.

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Sarasota Corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. During

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Answer:

Sarasota Corporation

Journal Entries for the following dates:

Oct. 1: Debit Equipment $22,800

Credit 10% Notes Payable (Prime Bank) $22,800

To record the issuance of a 4-month note.

Nov. 1: Debit Vehicle $35,700

Credit Cash $8,100

Credit 6% Notes Payable $27,600

To record the issuance of a 12-month note and cash for purchased vehicle.

Nov. 30: Debit Interest Expense $454

Credit Interest payable $454

To accrue the interests due on the notes.

Dec. 31: Debit Interest Expense $328

Credit Interest payable $328

To accrue the interests due on the outstanding notes.

Explanation:

a) Data and Analysis:

Sept. 1: Inventory $16,800 9% Notes Payable (Pippen) $16,800

3-month note

Sept. 30: Interest Expense $126 Interest payable $126

Oct. 1: Equipment $22,800 10% Notes Payable (Prime Bank) $22,800

4-month note

Oct. 31: Interest Expense $316 Interest payable 316

Nov. 1: Vehicle $35,700 Cash $8,100 6% Notes Payable $27,600

12-month note

Nov. 30: Interest Expense $454 Interest payable $454

Dec. 1: Notes payable (Pippen) $16,800 Interest payable $378 Cash $17,178

Dec. 31: Interest Expense $328 Interest payable $328

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3 years ago

The Machining Department supervisor has been very pleased with this performance because actual expenditures for January–March ha

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Answer:

The total units produced are as follows:

January: 90000 units

February: 100000 units

March: 110000 units

Explanation:

The total units produced are as follows:

January: 90000 units

February: 100000 units

March: 110000 units

Wages for each month are calculated as:

January: Wages = (Units * Direct labor hours per unit) + (hours * wages per hour) = (90000*$0.75) + (22500*$15) = $405000

February: Wages = (Units * Direct labor hours per unit) + (hours * wages per hour) = (100000*$0.75) + (25000*$15) = $450000

March: Wages = (Units * Direct labor hours per unit) + (hours * wages per hour) = (110000*$0.75) + (27500*$15) = $495000

Utilities for each month is:

January: Utility: = (hours * Utility cost per direct labor hour) = 22500 * 1.20 = $27000

February: Utility: = (hours * Utility cost per direct labor hour) = 25000 * 1.20 = $30000

March: Utility: = (hours * Utility cost per direct labor hour) = 27500 * 1.20 = $33000

Since depreciation is fixed and do not flex it is the same for all the months at $60000

The total for each month is:

January: Total = Wages + Utilities + depreciation = $405000 + $27000 + $60000 = $492000

February: Total = Wages + Utilities + depreciation = $450000 + $30000 + $60000 = $540000

March: Total = Wages + Utilities + depreciation = $495000 + $33000 + $60000 = $588000

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3 years ago

3 arguments for social responsibility

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Answer:

Public Requirements: ...
Favourable For Business: ...
Moral Justification: .

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2 years ago

After the Container Store forecasts human resources demand and supply, the firm is likely to engage in a systematic procedure fo

nexus9112 [7]

Answer:

The correct answer is D that is Job analysis.

Explanation:

Job analysis is the procedure which is used to identify and determine or evaluate in depth or detail the various aspects of the certain job or a specific job.

So, the firm who is engage in the systematic procedure for studying the positions so as to determine the various requirements as well as the elements is called as the job analysis.

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4 years ago

Read 2 more answers

The controller of Sunland Production has collected the following monthly expense data for analyzing the cost behavior of electri

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Answer:

maintenance costs are $940 per month plus $7 per machine hour.

Explanation:

Base on the scenario been described in the question, we use the following method to solve this

Maintenance cost = (6,330 - 2480)/770-220

Maintenance cost per machine= 3850/550

Maintenance cost per machine = $7

Hours 300 Machine Hours Total costs Less: Variable costs 770 X $7 220 X $7

Total fixed costs $6,330 $5,390 $ 940 $2,480 1,540 $ 940 Therefore, maintenance costs are $940 per month plus $7 per machine hour.

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4 years ago