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
What are some of the difficulties in measuring innate capacity and in measuring developed performance?
stira [4]

Answer:

Explained below.

Explanation:

There are some of the difficulties in measuring innate capacity and in measuring developed performance are as follows:

* Primarily we do not know precisely what innate abilities are or how to measure them so it is one of the difficulty while measuring innate capacities.

* And with the measurement of performance abilities, there is no single, all-inclusive performance criterion.

4 0
3 years ago
Which of the following government actions would increase the supply of cars in the United States?a. the establishment of an exci
yaroslaw [1]
I think it would be the third option
5 0
3 years ago
why might a bank offer to make a loan to a consumer at a low initial rate which will increase after a set period of time?a. too
Whitepunk [10]

I believe the answer is: c. to make the loan look more attractive and competitive now

By offering it at low initial rate, the people who borrow money would experience low burden if they plan to return the money within short period of time. This would make them much more likely to obtain a loan, and it also would make the bank that create the loan program looks better compared to their competitors.

8 0
3 years ago
Black market dealers are often legitimate businesses with questionable and illegal practices. (points : 2) true false
amm1812
 The Black Market is a series of dealers who can get you a product that has been repealed from stores, such as 2006 yellow Tide, which cleaned the products too good, forcing the company to take it off the market because they wanted to continue to sell products that they claim better than the last. The Black Market is illegal and if currently under high investigation by governments all over the world. So, if the Black Market practice itself is illegal and all actions taken while in the Black Market are as well, I think you can finalize your answer. Hope this helped!
6 0
3 years ago
How do investment banks differ from commercial​ banks? ​(mark all that​ apply.)
mina [271]
I would say d as investment banks are generally concerned with lending money to start up or fund business ventures. Commercial banks lend to almost anyone that can repay.
4 0
3 years ago
Other questions:
  • Good communication skills are important only for employees such as salespeople who directly with customers.
    7·1 answer
  • The profit maximizing behavior of a monopoly is different from that of a perfectly competitive firm in that a monopoly can Quest
    13·1 answer
  • Emily purchased a building to store inventory for her business. The purchase price was $760,000. Emily also paid legal fees of $
    15·1 answer
  • g Suppose a worker with an annual discount rate of 8 percent currently resides in Chicago and is deciding whether to remain ther
    5·1 answer
  • Today, expenditures worldwide on all forms of promotion exceed:
    7·1 answer
  • Omaha Plating Corporation is considering purchasing a machine for $1,500,000. The machine is expected to generate a constant aft
    12·1 answer
  • HELP ASAP!! GIVING BRAINLIEST! NEED THE LAST ANSWER PLEASE
    5·1 answer
  • Law is a practical discipline: theory has no place in law . With specific references of the Law of Contract , discuss
    11·1 answer
  • Your airplane has 845 miles to travel. So far the airplane has traveled 429 miles. How many miles does the airplane have to trav
    13·1 answer
  • Assume an investor purchases the net assets of an investee for the cash purchase price is $75,600. The investor is willing to pu
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!