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
Fiesta28 [93]
3 years ago
13

The MU/P ratio for good X is greater than the MU/P ratio for good Y. To achieve consumer equilibrium, the consumer reallocates d

ollars from the purchase of good Y to the purchase of good X. If the law of diminishing marginal utility holds, the marginal utility of good X __________ and the marginal utility of good Y __________.
Business
1 answer:
uysha [10]3 years ago
7 0

Answer:

Falls:rises.

Explanation:

The MU/P (Marginal Utility/Price) ratio for good X is greater than the MU/P (Marginal Utility/Price) ratio for good Y. To achieve consumer equilibrium, the consumer reallocates dollars from the purchase of good Y to the purchase of good X. If the law of diminishing marginal utility holds, the marginal utility of good X falls and the marginal utility of good Y rises.

The law of diminishing marginal utility states that as the unit of a good or service consumed by an individual increases, the additional satisfaction he or she derives from consuming additional units would start decreasing or diminishing as the units of good or service consumed increases.

Also, the marginal utility of goods and services is the additional satisfaction that a consumer derives from consuming or buying an additional unit of a good or service.

Hence, the marginal utility of good X falls and the marginal utility of good Y rises because the consumer no longer derive satisfaction or benefits (utility) from the consumption of good X while he would switch to good Y for satisfaction.

You might be interested in
Prepare a journal entry for the purchase of office equipment on February 19 for $31,700, paying $7,600 cash and the remainder on
Pani-rosa [81]

Answer:

Dr Office equipment 31,700

Cr cash 7,600

Cr Accounts payable 24,100

Explanation:

Preparation of the journal entry for the purchase of office equipment on February 19

Based on the information given the if asset was purchased on February 19 for the amount of $31,700 in which the company paid the amount of $7,600 cash and the remainder on account which means that the journal entry will be:

February 19

Dr Office equipment 31,700

Cr cash 7,600

Cr Accounts payable 24,100

(31,700-7,600)

8 0
3 years ago
Google has written down the following: "to organize the world's information and make it universally accessible and useful." This
qaws [65]

Answer:

<h2>Mission Statement</h2>

Explanation:

A brief description of a company's purpose is called mission statement, it tells about the company's purpose for the public and employees. It varies from company to company as because every company describes it differently.

A mission statement is important as it serves as a base line for everyone in the organisation. It serves as the basis for effective business planning. Mission statements are used in  marketing as they are a company's public face. Companies also include them on their websites.  A good mission statement can inspire, surprise and transform your business

7 0
3 years ago
Lang Warehouses borrowed $196,401 from a bank and signed a note requiring 7 annual payments of $33,942 beginning one year from t
Snezhnost [94]

Answer:

5%

Explanation:

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator  

The interest rate implicit in the agreement can be determined by finding the internal rate of return.

Cash flow in year 0 =  $-196,401

Cash flow each year from year 1 to 7 = $33,942

IRR = 5%

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.  

5 0
3 years ago
Use the information below to calculate the number of orders per year when using the EOQ: Annual demand for an item is 43,000 uni
IRINA_888 [86]

Answer:

The closest answer is 49.

Explanation:

Given that,

Annual demand, D = 43,000 units

Ordering cost, O = $200

Per unit cost of the item = $50

Annual holding cost, H =  annual holding rate × Per unit cost of the item

                                      = 35% × $50

                                      = $17.5

EOQ=\sqrt{\frac{2\times D\times O}{H} }

EOQ=\sqrt{\frac{2\times 43,000\times 200}{17.5} }

              = 991.39

              = 992 units

Therefore,

Number of orders per year = Annual demand ÷ EOQ

                                             = 43,000 ÷ 992

                                             = 43.34

Hence, the closest answer is 49 and this is not given in the question.

5 0
3 years ago
Ms. Langley is 30 years old and has begun a retirement plan that permits he r to place monthly amounts of $400 into a retirement
elena-14-01-66 [18.8K]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Ms. Langley is 30 years old and has begun a retirement plan that permits her to place monthly amounts of $400 into a retirement vehicle, beginning one month from now, for 30 consecutive years.

When Ms. Langley reaches her retirement at age 60, she expects to live for 25 more years. The interest rate is 6%.

First, we need to calculate the amount of money that she will have at age 60, using the following formula.

FV= {A*[(1+i)^n-1]}/i

A= monthly deposit= 400

n= 30*12= 360

i= 0.06/12= 0.005

FV= {400[(1.005^360)-1]}/0.005= $401,806.02

Months= 25years*12= 300 months

Monthly= 401,806.02/300= $1,339.35

4 0
3 years ago
Other questions:
  • Net present value is ______. used to determine if a project is an acceptable capital investment the difference between the prese
    5·1 answer
  • ABC Co. provides the following sales forecast for the next four months: April May June July Sales (units) 590 670 620 710 The co
    8·1 answer
  • S buys a $50,000 whole life policy with a 50,000 accidental death and dismemberment rider. S dies 1 year later of natural causes
    9·1 answer
  • In a perfectly competitive market, the process of entry and exit will end when (i) accounting profits are zero. (ii) economic pr
    7·1 answer
  • Room and Board has determined that $41,650 is the break-even level of earnings before interest and taxes for the two capital str
    10·1 answer
  • The​ ________ approach recognizes that both financial and operational performance measures should be considered when evaluatin
    13·1 answer
  • Which best describes why a company issues stocks? to increase the company’s value to ensure profits to increase dividends to rai
    13·2 answers
  • The graph shows unemployment rates in the United States in recent years.
    8·1 answer
  • Source: Tommy Stubbington and Ben​ Edwards, open double quoteU.K. to Repay First World War ​Bonds,close double quote Wall Street
    8·1 answer
  • logistics plans are executed and altered over the many years of deployed operation, with operations and support (O
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!