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mixas84 [53]
3 years ago
11

If consumers see a measurable increase in the price of coffee, they are likely to change their consumption to less expensive tea

. These substitutions would show-up in the ____________.
Business
1 answer:
erica [24]3 years ago
4 0

Answer: Utility function .

Explanation: In economics and particularly in consumer choice theory, the substitution effect is one component of the effect of a change in the price of a good upon the amount of that good demanded by a consumer, the other being the income effect .

utility function is an important concept that measures preferences over a set of goods and services. Utility represents the satisfaction that consumers receive for choosing and consuming a product or service. Utility is measured in units called utils, but calculating the benefit or satisfaction that consumers receive from is abstract and difficult to pinpoint. As a result, economists measure utility in terms of revealed preferences by observing consumers' choices. From there, economists create an ordering of consumption baskets from least desired to the most preferred.

utility function measures the welfare or satisfaction of a consumer as a function of consumption of real goods such as food or clothing. Utility function is widely used in the rational choice theory to analyze human behavior.

When economists measure the preferences of consumers, it's referred to ordinal utility. In other words, the order in which consumers choose one product over another can establish that consumers assign a higher value to the first product. Ordinal utility measures how consumers rank one product versus another.

Economists take the utility-function concept one step farther by assigning a numerical value to the products that consumers choose or choose not to consume. Assigning a value of utility is called cardinal utility, and the metric used to it is called utils.

For example, in certain situations, tea and coffee can be considered perfect substitutes for each other, and the appropriate utility function must reflect such preferences with a utility form of u(c, t) = c + t, where "u" denotes the utility function and "c" and "t" denote coffee and tea. Economists might conclude that a consumer who consumes one pound of coffee and no tea derives a utility of 1 util.

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Davidson Software Technologies believes in hiring only the best programmers in the industry. As a result, it uses a comprehensiv
Vladimir [108]

Answer:

The correct answer is C

Explanation:

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Recruitment and selection is the procedure of identifying the requirement of job and defining the need of the position, advertising the position and selecting the appropriate person for the position.

Therefore, the recruitment and selection is the component of HRM system which uses the hiring procedure that comprise of testing and interviewing the professionals.

7 0
3 years ago
If your purchases of shoes increase from 9 pairs per year to 11 pairs per year when your income increases from $19,000 to $21,00
fiasKO [112]

Answer:

Option (a) is correct.

Explanation:

Here, shoes are normal goods as there is a positive relationship between the income level of the consumer and the quantity demanded for shoes. It can be seen that as the income of the consumer increases from $19,000 to $21,000 then as a result the quantity of pairs of shoes demanded increases from 9 to 11 pairs. Normal goods are generally have positive income elasticity of demand.

Therefore, the shoes are normal goods in this case.

7 0
3 years ago
How is the price elasticity of demand​ measured? A. by multiplying the percentage change in the​ product's price by the percenta
Lapatulllka [165]

Answer:

How is the price elasticity of demand​ measured?

c. by dividing the percentage change in the quantity demanded of a product by the percentage change in the product's price

Explanation:

Price elasticity of demand (PED or Ed) is a measure used in economics to show the responsiveness, or elasticity, of the quantity demanded of a good or service to a change in its price when nothing but the price changes. More precisely, it gives the percentage change in quantity demanded in response to a one percent change in price.

8 0
3 years ago
Read 2 more answers
How do I consolidate a balance of two companies, where Company A has 25% of Company B and a controlling interest?
marusya05 [52]

Answer:

Acquisition method

Explanation:

4 0
3 years ago
Cor-Eng Partnership was formed on January 2, 20X1. Under the partnership agreement, each partner has an equal initial capital ba
inessss [21]

Answer:

Cor's share of Cor-Eng's 20X1 net income is $60,000

Explanation:

                                Partnership Table

                                               Cor$        Eng$        Total$

Ratio                                         60%        40%         100%

Assets                                  60,000      20,000     80,000

Goodwill                                                40,000      40,000

Initial Capital balance        60,000     60,000     120,000

Add: Net income                  15,000       10,000     25,000

Less: Drawing                      -3,000        -9,000     -12,000

Year End balance                 72,000      61,000    133,000

6 0
3 years ago
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