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tino4ka555 [31]
3 years ago
9

George has a weekly income (I) of $50 which he uses to purchase donuts (D) and coffee (C). The price of a donut is $1 and the pr

ice of coffee is $2.50. Suppose George's income increases to $100 while the price of both donuts and coffee remain unchanged. Given this income change, one would expect George's budget line:a. to shift to the right. b. to shift to the left. c. to rotate around the coffee axis point. d. not to be affected.
Business
1 answer:
Naddik [55]3 years ago
8 0

Answer:

The correct answer is option a.

Explanation:

A budget line represents the maximum possible combination of two goods that can be purchased by an individual by spending all of his income.  

George has a weekly income of $50.

He spends this income on donuts and coffee.

The price of a donut is $1 and the price of coffee is $2.50.

As George's income increase to $100, George will be able to afford more coffee and donuts as the price of coffee does not change.  

So, the budget line will shift to the right, indicating the increase in the quantity of goods George can afford.

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3 years ago
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andriy [413]

Answer:

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Explanation:

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It deals with behavior that constitutes an injury to a person or other private party, such as a corporation.

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8 0
3 years ago
____________ produces works that are installed in public places and use words that resemble advertising slogans.
bonufazy [111]

Answer:

Jenny Holzer

Explanation:

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Jenny Holzer produces works that are installed in public places and use words that resemble advertising slogans.

6 0
3 years ago
Assume that IBM is expected to pay a total cash dividend of $5.60 next year and that dividends are expected to grow at a rate of
IceJOKER [234]

Answer: $112

Explanation:

The following information can be gotten from the question:

Growth Rate = 5%

Dividend at end of year,D1 = 5.60

Required return, ke = 10%

Then, the current market value will be:

P0 = De/(ke-g)

= 5.60/(10% - 5%)

= 5.60 / 5%

= 5.60/0.05

= $112

Therefore, the current market value of a share of IBM stock is $112.

6 0
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Framjam Sports Equipment produces basketballs at its factory in Kentucky and soccer balls at its factory in Illinois. At its cur
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Answer:

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Explanation:

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(cost of producing basketballs + cost of producing soccer balls - annual cost of production) ÷ annual cost of production

= ($70,000 + $45,000 - $100,000) ÷ $100,000

= 0.15

7 0
3 years ago
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