Answer:
The income effect and substitution effect work in opposite directions and income effect is dominant.
Explanation:
In case of a normal good, both the income effect as well as substitution effect work in the same direction. A fall in the price of a product will increase the purchasing power of the consumer so its quantity demanded will increase.
The consumers will also prefer the cheaper good so the substitution effect will cause the quantity demanded to increase.
In case of an inferior good, however, income elasticity is negative. The income effect and substitution effect work in opposite directions.
A price decrease in the case of an inferior good will increase the real income and purchasing power of the consumer. This will cause the quantity demanded of the inferior good to decline as the consumer will prefer a substitute normal good.
Answer:
Creepers drop 0 -2 gunpowder and a music disc if killed by a skeleton arrow. They will also drop a creeper head if they are killed by a charged creeper explosion. They drop 5 experience when killed by a player or player's wolf.
Explanation:
please make me brainiest if that is ok ;)
Answer:
The cost of the land should be recorded as $108,350
Explanation:
Land cost = $112,000
Demolition dilapidated building = $2,200
Legal fees - title search = $1,450
Cost of land = Land cost - Demolition dilapidated building - Legal fees - title search
Cost of land = $112,000 - $2,200 - $1,450
Cost of land = $108,350
Answer:
$28,121
Explanation:
The formula for compound interest is A=P(1+r/100)t, (t) is in the exponent.
P=25,000
r=4
t=3
Once we input the values it will be: A=25000(1+4/100)3
And so our answer is $28,121
P.S The reason we are using compound interest formula is bcz the said (<u>compounded </u>monthly)
