Answer:
Therefore, Increases in the tax rate decrease the government purchases multiplier
Explanation:
Given that
MPC = 0.8
Tax rate t = 0.25
tax rate is increases by 35%
Government purchases multiplier
= 1 ÷ 1 - MPC × (1 - t). Here
So, GPM = 1 ÷ 1 - 0.8 × (1 - 0.25) = 2.5
Government purchases multiplier
= 1 ÷ 1 - MPC × (1 - t)
MPC = 0.8
tax rate t = 0.35
GPM = 1 ÷ 1 - 0.8 × (1 - 0.35)
= 2.08333
= 2.083
Therefore, Increases in the tax rate decrease the government purchases multiplier.
Answer:
Net income increase - $4,890
Explanation:
The computation of the effect on net income is shown below:
= Number of pounds of inferior product × (standard price for the materials - inferior product price per pound)
= 3,000 pounds × ($13 - $11.37)
= 3,000 pounds × $1.63
= $4,890 increase
For determining the effect we took the difference of the prices and then multiply it with the number of pounds of the inferior product
Answer:
Utility overvalued
Explanation:
According to economists, such people over value the utility they are meant to get in the future. They only want to get the entire satisfaction at a go because of the fear of not getting that food again in the nearest future.
The CEO was describing a former mentor who empowered his employee. Dynamic pioneers today give workers the expert and duty to settle on choices all alone. This is the embodiment of strengthening. The administration mentors and prompts representatives, as opposed to coordinating their work.
Answer:
Letter E is correct. <em>Their share of the cost is hig</em>h.
Explanation:
Price sensitivity is characterized by consumer behavior in relation to the price of a product or service.
The degree of price sensitivity can be measured using the price elasticity of demand, which is the study of the percentage change in the amount of demand for a good or service divided by the percentage change in price.
Some variables may affect consumer behavior, price sensitivity may be higher when there are many substitute products and lower when the consumer values a higher quality good and <u>when its profitability is higher compared to the total cost of the product.
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