1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lina2011 [118]
3 years ago
9

Suppose that Ariana consumes two goods, coffee and textbooks. Both are normal goods. Suppose the price of textbooks decreases, w

hile the price of coffee remains unchanged. The income effect by itself suggests that Ariana will consume
Use letters in alphabetical order to select optionsA) Less coffee and fewer textbooks.B) More coffee and more textbooks.C) More coffee and fewer textbooks.D) Less coffee and more textbooks.
Business
2 answers:
drek231 [11]3 years ago
5 0

Answer:

D

Explanation:

marta [7]3 years ago
4 0

Answer:

The correct answer here would be option D) more of textbooks would be consumed and less of coffee would be consumed.

Explanation:

In economics, substitution effect refers to a situation where there is change in demand of one good in response to the change in price of other goods. Same situation is taking place here as now the price of textbooks have decreased , Ariana will now look to consume more of textbooks and less of coffee.

You might be interested in
Using the information below, calculate cost of goods sold for the period: Sales revenues for the period$1,312,000 Operating expe
nikitadnepr [17]

Answer:

COGS= $543,000

Explanation:

Giving the following information:

Cost of goods manufactured for the period 548,000

Finished Goods Inventory, January 1 44,000

Finished Goods Inventory, December 31 49,000

<u>To calculate the cost of goods sold (COGS), we need to use the following formula:</u>

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS= 44,000 + 548,000 - 49,000

COGS= $543,000

5 0
3 years ago
Customers paying with credit consider the purchase a kind of
Anna35 [415]

Answer:

The answer is investment

Explanation:

4 0
3 years ago
Lore Co. changed from the cash basis to the accrual basis of accounting during 2005. The cumulative effect of this change should
marysya [2.9K]

Answer: Prior period adjustment resulting from the correction of an error.

Explanation:

The Cash basis method is not acceptable under both IFRS and U.S. GAAP accounting principles and these are the principles followed by the majority of the world so Lore Co. was using the cash basis in violation of both conventions which means that their accounting records before the change are considered wrong and full of errors.

In changing to the acceptable principles, they are correcting that error and need to adjust prior periods for that error as well.

8 0
2 years ago
Your bank is offering you an account that will pay 20 % interest in total for a​ two-year deposit. Determine the equivalent disc
Crank

Answer: a. 0.042 b. 0.086 c. 0.00692

Explanation:

NOTE: Convert months to years. So 24 months = 2 years.

a. Six months

Months to year conversion gives: 6months/24months as 1/4 years

= (1 + 18%)^ 1/4 — 1 x 100%

= 1.042 — 1

= 0.042

Equivalent Discount Rate = 0.042

b. One year

12months/24months as 1/2 years

= (1 + 18%)^1/2 — 1 x 100%

= 0.086

Equivalent Discount Rate = 0.086

c. 1 month

1month/24months as 1/24 years

= (1 + 18%)^1/24 — 1 x 100%

= 0.00692

6 0
3 years ago
At the profit-maximizing level of output
tensa zangetsu [6.8K]

Answer:

The correct answer is letter "C": marginal revenue equals marginal cost.

Explanation:

The profit-maximizing level of output for every type of firm is reached when the marginal revenue of production equals the marginal cost meaning that the additional cost of selling one more unit equals the cost of producing one more unit.

Marginal costs vary according to changes in production. Because of that, managers must identify when those events happen to calculate the profit margin (percentage sales that are converted into profits) of the firm to avoid losses.

5 0
3 years ago
Other questions:
  • The financial reporting (disclosure) system is based on the electronic data tagging language called
    5·1 answer
  • Amy is a package delivery service manager. she is interested in implementing ________, the management philosophy pioneered by fr
    11·1 answer
  • "A market maker that compensates a retail member firm for sending its customer orders to that market maker is:"
    15·1 answer
  • _______ is the dissemination of information to a fairly small, select audience that is defined by its shared values, preferences
    8·1 answer
  • Bob at Bob’s Furniture is looking at a perceptual map about customers’ ideas about his products. The attributes customers care m
    8·1 answer
  • External benefits in consumption refer to benefits accruing to those a. who bought and consumed the product.b. who are selling t
    8·1 answer
  • What are two ways the government can stimulate growth in a declining economy?
    5·1 answer
  • PLEASE HELP AS FAST AS POSSIBLE MAKE SURE ANSWERS ARE CORRECT/RIGHT.
    12·1 answer
  • Assuming no change in the nominal wage and a significant increase in human capital, the output per worker will
    12·1 answer
  • Each of the items below must be considered in preparing a statement of cash flows for Baskerville Co. for the year ended Decembe
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!