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3 years ago

ECONOMICS - What is the 'consumer's problem'?

Business

2 answers:

MrRissso [65]3 years ago

7 0

It is A. the difficulty in maximizing total utility with budget constraints

Anastasy [175]3 years ago

3 0

Answer:

The best answer is "A"

the difficulty in maximizing total utility with budget constraints

Explanation:

The major problem of consumers is that they want to attain a level of satisfaction from a particular goods or services when they knw that it is difficult to reach.

If the demand is more than the supply,the price will be higher therefore there will be less consumption.

The price a consumer is willing to pay for a good depends on the benefit derived by consuming the product and it decreases for each additional unit of consumption.

At the point where total utility is achieved in the goods and services bought, satisfaction received from consuming a given total quantity of that goods is reached.

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What was the major financial change between post ww2 borrowers and borrowers after 1970.

Mama L [17]

The major financial change between post ww2 borrowers and borrowers after 1970 was that there were plenty of jobs after World War 2 and the economy was growing at a large extent.

Most of the people believed that their income would not change even though there were plenty of jobs in the economy.

However they all have a constant income from the year 1945 to 1970.

So all the people continued to borrow more and more money by not attending or joining any post war job in the economy.

Banks were also willing to lend more and more money as they were on the way of high earning through more lending but they get closed.

So after the war people continued to increase their loans and debt ratio in the economy of lending due to which it became the period of great depression.

To know more about post war borrowing here:

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4 0

1 year ago

A price ceiling is the lowest price a seller can charge without losing all of its customers. a legal minimum price below which a

zavuch27 [327]

The answer would be a legal price above which a good/service cannot be sold at.

6 0

3 years ago

An establishment owned by two or more persons in which only one person has unlimited personal liability for the business describ

chubhunter [2.5K]

Limited partnerships

4 0

3 years ago

What single investment made today, earning 12% annual interest, will be worth $6,000 at the end of 6 years? b. What is the prese

ankoles [38]

Answer:

The results a-c are the same $3,039.79

However, the rate of return is given different names in each of the scenario.

In the first scenario, it was named annual interest which implies rate of return on an investment.

Annual interest is the same as discount rate because discounting an amount means stating in today's terms,which also applies to the amount to be invested when the future cash flow repayable is known, the amount to be invested can be brought back to equivalent amount today by discounting.

Finally, opportunity cost means the interest rate forgone by choosing to invest in one security,which is also the desirable rate of return convincing enough for the investment to be made.

A rate of return can be tagged annual interest, opportunity cost or discount rate,they are synonymous.

Explanation:

The $6000 is the future value, the unknown is present value.

PV=FV*(1+r)^-N

r is the rate of return of 12% while N is 6 years

PV=$6000*(1+12%)^-6

PV=$3,039.79

b.the requirement also is PV with FV of $6,000 with discount rate of 12%,that rate of return,with N being 6 years

PV=$6000*(1+12%)^-6

PV=$ 3,039.79

c,The most to be paid for $6,000 with an opportunity cost of $12% is given below;

PV=$6000*(1+12%)^-6

=$3,039.79

4 0

3 years ago

The slope of the budget line is: negative, since to purchase more of one good means giving up some of the other good. zero, sinc

34kurt

Answer:

Negative, since to purchase more of one good means giving up some of the other good.

Explanation:

A budget line illustrates the number of goods, consumers are able to buy with lower income. Thus the price of goods and customers income to be spent on goods determine the budget line.

The slope of the budget line measures the opportunity cost of consuming Commodity A forgetting Commodity B. In order to get more of Commodity A, the consumer will have reduce the consumption of Commodity B Forefeiting the opportunity to consume Commodity B is the true opportunity cost of Commodity A and this measured by the slope of the budget line.

The slope of the budget line shows the amount of a commodityB the consumer must forfeit to purchase one more unit of a commodity A and the slope is usually Negative.

5 0

3 years ago