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IceJOKER [234]
3 years ago
10

Economist george stigler once wrote that, according to consumer theory, “if consumers do not buy less of a commodity when their

incomes rise, they will surely buy less when the price of the commodity rises.”
Business
2 answers:
Gala2k [10]3 years ago
6 0

<u>Economist George Stigler once wrote that, according to consumer theory, “if consumers do not buy less of a commodity when their incomes rise, they will surely buy less when the price of the commodity rises.” This is an example of normal goods and inferior goods.  </u>

<u></u>

Further Explanation:

Normal goods:

Normal goods refer to the types of goods, the demand for the good is increased when the income rises. When the income is increased, the demand for good rises. Now the individual buys more quantity of goods. When the income is decreased, the demand for a product fall.  

Inferior goods:

Inferior goods are those type of goods, the demand for the good is decreased, when the income rises. When the income is increased, the demand for a good fall. Now the individual buys less quantity of goods. When the income is decreased, the demand for a good rise.  

The consumer does not purchase less when the income rise because the purchasing power of the consumer is increased. The consumer buys less of the product, the price of the product rises.  

According to the law of demand, the demand for the product is increased when the price falls and the demand for the product is decreased when the price low.  

Learn more:

1. Learn more about an increase in price

<u>brainly.com/question/3352455 </u>

2. Learn more about goods production

<u>brainly.com/question/9356259 </u>

3. Learn more about GDP and taxes

<u>brainly.com/question/4306898 </u>

Answer details:

Grade: Middle School

Subject: Economics

Chapter: Types of good

Keywords:

Economist, George Stigler, consumer theory, commodity, product, goods, normal goods, inferior goods, the law of demand, purchasing power.

lyudmila [28]3 years ago
5 0
George Stigler is a known American economist and according to his theory the Consumer theory, he quoted that <span>“if consumers do not buy less of a commodity when their incomes rise, they will surely buy less when the price of the commodity rises.” This means that when consumers do not purchase a certain product even if their incomes increases, that is considered normal, but when the product increases in value, we can expect that these consumers will buy less of the product.</span>
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Explanation:

The Payback period by definition is the amount of time it will take a Project to recover the initial investment into it. For example, if a project had an investment of $20 million and made $5 million every year, the Payback period would be 4 years.

Now, if the amount of time it will take to recover an investment is longer than the expected amount of time the project will run (expected useful life) then logically speaking that would mean that the Investment would not be entirely recovered because the project will be done before it can pay off the investment hence Option D is correct.

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3 years ago
As the burden of taxes grows, the role of the auditor becomes increasingly important to the organization. True or false
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Answer:

False

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2 years ago
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3 years ago
An enterprising student has set up an internship clearinghouse for business students. Each student who uses the service fills ou
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Using the first method goes thus:

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What are the determinants of supply? Instructions: In order to receive full credit, you must make a selection for each option. F
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Answer:

Number of producers

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Technology

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Explanation:

Supply is the total amount of goods and services available to consumers in a market

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If the price of other good increases, it would be more profitable to produce the other goods. As a result, the number of producers available to  good would reduce.

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