Answer:
If Jenny doesn’t earn any interest on her savings and wants to perfectly smooth consumption across her life, how much will she consume every year?
Jenny's total income during her life = income as tax analyst ($60,000 x 10) + income as PhD student ($12,000 x 5) + income as Art Director (35 x $95,000) = $3,985,000
she generated income during 50 years and expects to live 20 more, so in order to perfectly smooth consumption across her life, she must divide her total life income by 70 years = $3,985,000 / 70 years = $56,928.57 per year
What might prevent her from perfectly smoothing consumption?
First of all, besides inflation, you also earn interest on your savings. That is why 401k and other retirement accounts work so well (the magic of compound interest). Even if inflation and interests didn't exist, you cannot know exactly what you are going to earn in the future and for how many years. In this case, she earned $60,000 for 10 years, but then earned only $12,000 during 5 years. If she really wanted to smooth her consumption, she would have needed to get a loan because her savings during the first 10 years wouldn't be enough.
When a company chooses to market a product in certain parts of the country but not in others because consumer preferences of one region differ from another region, it is known as geographic segmentation.
<h3>What are consumer preferences?</h3>
The products or commodities, which are demanded by consumers in a specific quantity at a given price due to the utility it brings to an individual consumer, is known as a consumer preference.
Hence, option A holds true regarding consumer preference.
Learn more about consumer preferences here:
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Answer:
Downward sloping
Explanation:
According to the law of demand, this law states that there is a inverse relationship between the price of a commodity and the quantity demanded for a commodity. This indicates that as the price of the commodity increases then as a result the quantity demanded for that commodity decreases and as the price of the commodity decreases then as a result the quantity demanded for that commodity increases.
Monopoly refers to the market conditions in which there is only a single firm operating in a whole market.
Hence, due to this inverse relationship between the price and the quantity demanded, the demand curve for a monopoly firm is downward sloping.
Answer:
Unrealized holding loss - Income (purchase commitments) $ 52,900 Dr
Estimated liability on purchase commitments ( $ 1,001,800 - $ 948,900 ) $ 52,900 Cr
Explanation:
Unrealized holding loss - Income (purchase commitments) $ 52,900 Dr
Estimated liability on purchase commitments ( $ 1,001,800 - $ 948,900 ) $ 52,900 Cr
