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Mandarinka [93]
3 years ago
12

The income effect of a price change predicts that a _____ in a good's price will _____ consumer purchasing power, leading to a(n

) _____ in consumption of _____ goods.
Business
1 answer:
NemiM [27]3 years ago
5 0

I will fill in the right answers into the blank:

The income effect of a price change predicts that a fall in a good's price will increase consumer purchasing power, leading to a(n) increase in consumption of normal goods.

 

Asnwers:

fall; increase; increase; normal

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Step-by-step explanation:

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What are two major advantages and two major disadvantages of having unions in the United
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Household production consists of Group of answer choices any commodities which are produced at home and then sold. any commoditi
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Any commodities which are produced at home and yield utility to the family

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In another word in HOUSEHOLD PRODUCTION the member of the household are both the producers as well as the consumers of the goods produce by them.

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3 0
3 years ago
A 30-year zero coupon bond with a face value of $5,000 is currently selling for $1,156.88 and has a market rate of interest of 5
daser333 [38]

Answer:

Price will increase by $277.58

Explanation:

Market rate of Interest of a zero coupon bond can be determined by following formula

Market Rate of Interest = [ ( F / P )^(1/30) ] - 1

4.25% = [ ( $5000 / P )^(1/30) ] - 1

0.0425 + 1 = ( $5000 / P )^1/30

( 1.0425 )^30 = (( $5000 / P )^1/30)^30

3.4856 = $5000 / P

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P = $1,434.46

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Change in price = $1,434.46 - $1,156.88 = $277.58

Price will increase by $277.58

5 0
4 years ago
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