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
monitta
3 years ago
11

When the price of a good rises, consumers buy a smaller quantity because of the ________ effect and the ________ effect?

Business
1 answer:
VladimirAG [237]3 years ago
4 0
When the price of a good rises, consumers buy a smaller quantity because of the substitution effect and the income effect.  A change in the relative prices of goods results in change in consumption of that goods and that is denoted as the substitution effect. T<span>he change in purchasing power on the other hand which also result in change in consumption is referred to as the income effect.</span>
You might be interested in
After years of using a mass marketing strategy, Digital Print Shops has responded to new competition from national chain stores
Kisachek [45]

Answer:

The answer to this question is B. Niche marketing

Explanation:

Niche marketing involves identifying and exploiting a small segment of a larger market by developing products to suit it. identifying and exploiting a small segment of a larger market by developing products to suit it.  

A niche market cater for  the unique demands that aren't being addressed by mainstream providers.  Organisations  pursue niche markets as a way to build loyalty and revenue with a largely-overlooked audience.

We can therefore conclude from the explanation in the questions as regards the activities of Digital Print Shops that it using a Niche marketing strategy

Hence the answer is B. Niche marketing

4 0
3 years ago
Read 2 more answers
Governor Smith of Georgia is presented with the following data: currently the state derives a total of $400 million of benefits
Rudiy27

Answer:

C)

In order to use the Cost-Benefit Principle correctly we need to compare the marginal benefit of the new spending, which is $25 million, with the marginal cost of the new spending, which is $50 million. This new spending makes no economic sense.

Explanation:

The cost-benefit principle in accounting states that the additional benefit must outweigh additional cost in an accounting system.

Spending of $250 million is giving $400 million revenue. The new proposal of spending $300 million to get $425 million implies we are spending extra $50 million to make extra $25 million.

This is not a good investment according to the cost-benefit principle.

8 0
3 years ago
A company's flexible budget for 24,000 units of production showed total contribution margin of $93,600 and fixed costs, $31,200.
Levart [38]

Answer:

a. $81,900.

Explanation:

The contribution margin per unit is obtained by dividing the total contribution margin by the 24,000 units produced.

CM = \frac{\$93,600}{24,000} = \$3.9\ per\ unit

The expected operating income is given by the contribution margin minus the fixed costs. For 29,000 units sold, the operating income is:

I = \$3.9*29,000 - \$31,200\\I=\$81,900

The answer is a. $81,900.

4 0
2 years ago
Identify how planned investment will change in each scenario. Airwings, a commercial airline manufacturer, becomes optimistic ab
kari74 [83]

Answer:

See explaination for the details of the answer.

Explanation:

1) Increase

As business is optimistic about its future, such business will start capacity expansion to cater for consumer demand.

2) Decrease

Higher real interest rate simply means borrowing cost is higher for the firms and so that they will reduce the investment in respose to that.

3) Decrease

A lower tax means higher profits and firms can pass these benefits to consumers with lower prices, to employees with higher wages and to the government with tax on profit. However, if the rate of tax itself has been increased then in that case corporates will see higher tax as a dampener in sentiments and they might curtail investment plans.

4) Decrease

A recession means there will be lesser economic activity overall and demand will be lower so as the consumption. In such case, planned investment will be reduced.

7 0
3 years ago
Carr Corp. declared a 7% stock dividend on its common stock. The dividend:
oksano4ka [1.4K]

Answer:

C) has no effect on Carr's earnings and profits for federal income tax purposes.

Explanation:

A stock dividend means that the corporation issues its existing shareholders more stock.

In essence, the corporation is merely diluting the proportional ownership interest of existing shares.

This has no effect on the corporation's earnings and profits for federal income tax purposes.

Therefore, the dividend has no effect on Carr's earnings and profits for federal income tax purposes.

4 0
3 years ago
Other questions:
  • Which of the following is not a characteristic of a corporation?
    8·2 answers
  • Mary Beth is a supervisor of a unit consisting of four employees--Cheryl, Susan, Fred and Michael. Financial hardship dictates t
    7·1 answer
  • True or false? fat loading in the days and weeks prior to an event is recommended as a method of enhancing athletic performance.
    12·1 answer
  • Critical analysis Q16 Suppose that the Federal Reserve purchases a bond for $100,000 from Reggie Rich, who deposits the proceeds
    7·1 answer
  • Volbeat Corp. shows the following information on its 2015 income statement: sales = $231,000; costs = $135,000; other expenses =
    14·1 answer
  • Set during the marketing research process, __________ are the specific, measurable goals the decision maker seeks to achieve in
    5·1 answer
  • What evaluation criteria is used in economic analysis?a. Time to completion b. Technical feasibility c. Sustainability d. Financ
    9·1 answer
  • Garrett has just purchased a beer distributorship. He wants to increase the visibility of his firm in local markets, but he know
    7·1 answer
  • Jimmy and Beth have both been assigned to a team to choose how to dispose of waste. Jimmy has long believed the company should c
    10·1 answer
  • Mega Corporation repurchased 1,000 shares of its $1 par value common stock for $8,000. The effect of this transaction on the acc
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!