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Nezavi [6.7K]
3 years ago
14

Suppose that households have significantly reduced their consumption of beef in response to a rise in beef prices, and substitut

ed it with a cheaper good, chicken. However, the CPI basket (i.e., consumption weights) was not adjusted accordingly. As the result, CPI inflation estimate is likely to:________.
Business
1 answer:
Gnesinka [82]3 years ago
5 0

Answer: Substitution bias:

Explanation:

Substitution bias explains a possible bias in economic index numbers if they do not incorporate data on consumer expenditures changing from products with a relatively high cost to a product with a cheaper price as the prices changes.

Substitution bias happens or can occurs when prices for products change relative to one another product. Consider how consumer expenditures are reflected in a consumer price index. Consumers will tend to buy more of the good whose price declined, and less of the now relatively more expensive good.

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Hadley Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
Margarita [4]

Answer:

Total period cost under variable costing $60,000

Explanation:

The computation of the total period cost under variable costing is shown below:

Variable selling and administrative expenses (880 units × $15) $13,200

Add: Fixed selling and administrative expenses $21,120

Add: Fixed manufacturing overhead $25,680

Total period cost under variable costing $60,000

6 0
2 years ago
Which customers are typical for the Agriculture, Food, and Natural Resources career cluster?
tatyana61 [14]
Chicken wing chicken wing hot dog and bologna
5 0
2 years ago
The scenario in which students sleep in their bedrooms from 2:00
mash [69]
That’s a busy day lol. The person slept from 2-9am slept for 7hours. The 3:30-4 slept for 30minutes.
7 0
3 years ago
Why do infomercials use both strong and weak arguments? to appeal to both high and low involvement consumers because it is neces
Vesna [10]

Answer:

The correct answer is letter "A": to appeal to both high and low involvement consumers.

Explanation:

Strong arguments are those that provide probable support for an idea. Weak arguments fail to provide support for different matters. Then, when talking about marketing, strong arguments are more likely to engage consumers with a product while weak arguments can attract consumers at low levels but the ideas lack reliability.

Thus,<em> infomercials can make use of both strong and weak arguments at different levels of consumer involvement.</em>

4 0
3 years ago
At the beginning of the year, Rangle Company expected to incur $54,000 of overhead costs in producing 6,000 units of product. Th
Flauer [41]

Answer:

Total cost of the units made in January = $35,400

Explanation:

Direct material cost in January = Direct material cost per unit * Units produced in January = $20 * 600 = $12,000

Direct labor cost in January = Direct labor cost per unit * Units produced in January = $30 * 600 = $18,000

Overhead costs in January = (Units produced in January / Expected units for the year) * Expected overhead costs for the year = (600 / 6,000) * $54,000 = $5,400

Therefore, we have:

Total cost of the units made in January = Direct material cost in January + Direct labor cost in January + Overhead costs in January = $12,000 + $18,000 + $5,400 = $35,400

5 0
2 years ago
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