Answer: Explanation:
The marginal rate of substitution of peaches for avocados is the maximum amount of avocados that a person is willing to give up to obtain one additional peach. When consumers maximize utility, they set their MRS equal to the price ratio, Pp/PA
where
,
P
p is the price of a peach and
PA is the price of an avocado.
In Georgia, avocados cost twice as much as peaches, so the price ratio is ½ , but in California, the prices are the same, so the price ratio is 1. Therefore, when consumers are maximizing utility (assuming they buy positive amounts of both goods), the marginal rates of substitution will not be the same for consumers in both states. Consumers in California will have an MRS that is twice as large as consumers in Georgia.
Answer:
Purchase discounts is a contra revenue account. Revenue accounts carry a natural credit balance; purchase discounts has a debit balance as a contra account. On the income statement, purchase discounts goes just below the sales revenue account.
Answer:
Total Return on investment=12.678%≅12.68%
Explanation:
Given;
Number of Shares= 300
Purchasing price of each share=$32.60
Total Dividends= $280
Selling price of each share= $35.80
Find:
Total Return on investment=?
Solution:
Total Return on investment=
Total Return on investment=0.12678
In Percentage:
Total Return on investment=12.678%≅12.68%
Answer: Option (a) is correct.
Explanation:
Income elasticity of demand measures the responsiveness of quantity demanded with change in the income level of an individual.
Income of an individual has a positive relationship with the demand for normal goods and has a negative relationship with the demand for inferior goods.
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