1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
MA_775_DIABLO [31]
3 years ago
14

With only two goods, if the income effect is in the same direction as the substitution effect then the good is ____.

Business
1 answer:
Leya [2.2K]3 years ago
7 0

Answer:

Normal good

Explanation:

Income effect Is change in quantity demanded when the consumers purchasing power change as a result of a change in real income.

Substitution effect is when quantity demanded falls as a result of rise in price of a good which leads consumers to purchase cheaper alternatives.

A normal good is a good whose demand increases as income increases.

If the price of a normal good falls, the real purchasing power of the consumer increases and the consumer buys more of the good. Also, the consumer substituites from more expensive alternative goods to the more cheap normal good. The income and substitution effect both move in the same direction.

You might be interested in
Based on the following cost data, what conclusions can you make about the costs of Product A and Product B?
Basile [38]

Answer:

The answer is D

Explanation:

Product A is a variable cost because variable cost(inputs) increases(decreases) with increase (decrease) units(output).

Whereas for product B;

Though, fixed cost is fixed across all units of output but as the total output increases, the average fixed cost decreases because the same amount of fixed costs now cover a larger number of output produced.

6 0
3 years ago
Which of the following items may be a good consideration in selecting a bank? I. The bank sends a representative to the local ma
wolverine [178]

The good consideration while selecting a bank includes:

  • number of near ATMs or bank branches.
  • knowledge of personal usage habits and needs.

<h3>What is meant by good consideration?</h3>

The consideration here means the act of assessing the favorable condition over unfavorable condition while trying to select a bank.

So, the good consideration while selecting a bank includes number of near ATMs or bank branches and knowledge of personal usage habits and needs.

Therefore, the Option B is correct.

Read more about Bank consideration

<em>brainly.com/question/13834098</em>

3 0
3 years ago
A cash-strapped young professional offers to buy your car with four, equal annual payments of $3,000, beginning 2 years from tod
kiruha [24]

Answer:

This means that receiving 9000 today is better for us as we will have more at the end of 6 years.

Explanation:

We need to first calculate what is the future value of payments in both scenarios. If we receive $9,000 today and invest it at 10% for 6 years we will have 9000*1.10^6=15,944

If we start reviving cash in 4 annual payments 2 years from now of $3000 we will have to find the future value of each individual payment and add them up.

First payment Future value = 3000*1.10^4=4392 (Money can be invested for 4 years at 10%)

Second payment future value = 3000*1.10^3=3993 (Money can be invested for 3 years at 10%)

Third payment future value = 3000*1.10^2=3630 (Money can be invested for 4 years at 10%)

Fourth payment future value = 3000*1.1=3300

Add them all up = 15315

This means that receiving 9000 today is better for us as we will have more at the end of 6 years.

5 0
3 years ago
A company's flexible budget for the range of 35,000 units to 45,000 units of production showed variable overhead costs of $2 per
Gnom [1K]

Answer:

c. $3,200 favorable.

Explanation:

We know that

Total controllable cost variance = Budgeted overhead cost - actual overhead cost

where,

Budgeted overhead cost =  Variable overhead + Fixed overhead

where,

Variable overhead = 40,000 units × $2 = $80,000

And, the fixed overhead = $72,000

So, the budgeted overhead = $152,000

And, the actual one is $148,800

So, the total controllable cost variance would be

= $152,000 - $148,800

= $3,200 favorable

7 0
3 years ago
Debra's manager publicly reprimanded her in the department meeting. during the manager's 10 minute rant, debra sat quietly. afte
pantera1 [17]

Answer:

Tend and befriend strategy

Explanation:

The tend and befriend strategy involves a person reacting to a situation by seeking for support from others (befriend) or supporting others (tend).

In this scenario Debra's manager publicly reprimanded her in the department meeting.

She did not react immediately but rather sought the support of her friend. She complained for two hours with her best friend to relieve the stress.

This is an example of tend and befriend reaction to stress.

6 0
3 years ago
Other questions:
  • Suppose a museum charges different entrance fees for children, students, adults and seniors, but these groups all pay the same a
    5·1 answer
  • Which of the following is true of manufacturing? a.It does not require an organizational strategy. b.It creates time utility for
    6·1 answer
  • Amy's school records describe her as a monochromat. what can we assume about amy's perceptual abilities
    13·1 answer
  • A manager employed 100 workers at the beginning of an accounting period, and 120 workers at the end of the period. During the ac
    8·1 answer
  • Vicki is an independent insurance agent who has seen little increase in her revenues over the last two years. Her main marketing
    10·1 answer
  • Please complete the spreadsheet template:
    14·1 answer
  • If 11 workers can produce a total of 54 units of a product and the 20 worker has a marginal product of six units what is the ave
    13·1 answer
  • When a vendor credit is recorded by a Quick Books Online user, what are 2 ways to use the vendor credit?
    14·1 answer
  • The type of data that has already been gathered by another source is called
    14·1 answer
  • Companies like my​ gym, which seek to do business in new markets for manufacturing​ and/or marketing​ purposes, have many potent
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!