Answer: B. shifts the budget constraint outward
Explanation:
An increase in the income of a consumer will bring about an outward shift of the budget constraint. This is because when the income of a consumer rises, such consumer can buy more goods and services.
Also, a decrease in income will result into an inward shift of the budget constraint. This is because lesser goods are purchased.
Answer:
price elasticity of demand = -2.05, price elastic, or in absolute terms 2.05, price elastic
Explanation:
the formula to calculate price elasticity of demand is:
PED = % change in quantity / % change in price
- % change in quantity = [(195 - 472) / 472] x 100 = -58.69%
- % change in price = [($0.99 - $0.77) / $0.77] x 100 = 28.57%
PED = -58.69% / 28.57% = -2.05
Generally when we calculate PED we use absolute values, i.e. this PED = 2.05. When PED > 1, price elastic, which means that any change in price will result in a larger change in quantity demanded. When PED < 1, price inelastic, which means that any change in price will result in a smaller change in quantity demanded. When PED = 1, unit elastic, which means that any change in price will result in a proportional and inverse change in quantity demanded.
Consumer sentiment is clearly are affected by gas prices. Nearly 9 in 10 consumers say that gas prices impact their feelings on the economy. Hope this helps!
Answer:
conspicuous consumption
Explanation:
The term conspicuous consumption was first introduced by a Norwegian-American economist and sociologist known as Thorstein Veblen in 1899. Conspicuous consumption refers to the practice whereby expensive goods or services are purchased by certain people at an outrageous cost just for the sake of display of flamboyant lifestyle or wealth for recognition purpose rather than for the very basic need the goods or services meet. It is simply an act of wasteful spending on goods or services that other people of that social class on a normal day cannot afford to pay such expensive price for.
The case of Hope is simply a kind of conspicuous consumption as she doesn’t mind emptying her credit card to afford the luxury of the new designer purse just for the purpose of public display among her social class.
Answer:
Chunking
Explanation:
If one wants to increase the capacity of short-term memory, more items can be held through the process of Chunking. This term refers to grouping many pieces of similar information into a larger piece of information. Allowing you to just need to remember the larger units, which would give you access to the smaller components that are related to it. Thus increasing your short-term memory capacity.