Answer:
The correct answer is "substitution effect"
Explanation:
When the price of a good or service rises, and the consumers change into a cheaper product with similar characteristics; immediately the market experiencing a decrease in sales for these changes; That phenomenon is called substitution effect.
For Example:
When the chicken price increases, the consumers prefer to consume pork; Immediately the chicken sales decrease for this decision. That is called a substitution effect.
Answer:
it will take 16.89 years for the account to increase to $2 million.
Explanation:
PV = $400,000
FV = $2,000,000
I/Y = 10%
Solving for N in:
FV = PV * (1 + I/Y)N
$2,000,000 = $400,000 * (1.10)N
5 = (1.10)N
N = 16.89 years
Therefore, it will take 16.89 years for the account to increase to $2 million.
The greek philosopher identified three critical elements of good communication
Which is Aristotle- ethos, logos, and pathos
Answer:
Leon's gain = $65,000
Explanation:
Total consideration received by Leon = $75,000 (cash) + $25,000 (artwork) + $20,000 (loan assumed by buyer) = $120,000
Leon's total costs = $50,000 (equipment's basis) + $5,000 (selling expenses) = $55,000
Leon's gain = total consideration received - total costs = $120,000 - $55,000 = $65,000
