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Fofino [41]
3 years ago
14

In the budget constraint framework, when the price of a good rises and demand for the other good decreases, what can you say abo

ut the size of the substitution effect compared to the income effect?
Business
1 answer:
nignag [31]3 years ago
8 0

Answer:

The increase in demand of the product with the higher price or decrease in demand for the other goods is because the substitution effect is outweighed by the income effect of price increase.

Explanation:

The above explanation in economics refers to Giffen Good. The idea behind this concept Giffen is that if you do not have money and there is an increase in the price of a fundamental product such as bread, it is still impossible to afford other alternatives, hence you will go ahead to buy bread or avoid buying any of the product. Hence, the demand for other product will also decrease in this case. This means that the demand for product with higher price or decrease in other substitute product is due to the fact that the income effect outweighs the substitution effect. Hence people do not have the money to even afford the alternative product.

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Randolph is a 30 percent partner in the RD Partnership. On January 1, RD distributes $15,000 cash and inventory with a fair valu
Naya [18.7K]

Answer:

$2,000 capital loss

Explanation:

Randolph recognizes a $2,000 capital loss because RD distributes only cash and inventory and the adjusted bases of the property distributed is less than his basis in RD.

7 0
3 years ago
Max Weber argued that formal organizations were efficient, but he cautioned that they can have harmful effects on people. As he
baherus [9]

Answer:

Organization create alienation

Explanation:

We are informed about how Max Weber argued that formal organizations were efficient, but he cautioned that they can have harmful effects on people.

In this case, As he saw it, the danger is Organization create alienation.Organization create alienation do occur in an organization where the workers/Employees of the organization and the organization herself have different views. This when employees is with aims/expectations concerning the organization, but in this scenario the organization has something different such as centralization of authority.

Whenever there is alienation in particular workplace, people become meaningless and powerless.

4 0
3 years ago
A Michigan State University student spends his summer months in his hometown, where he works for a local micro-brewery during th
murzikaleks [220]

Answer: Expectancy theory

Explanation:

The theory that suggests that the student will only work as hard as necessary to earn a "C" grade is the expectancy theory.

Expectancy theory states that an individual will act in a particular way due to the fact of what they believe will be the result of the behavior that they selected and thereby will select a particular behavior above orhers.

Here, the student simply selects his work above the school grade because he believes that a C is enough for him. Therefore, the answer will be expectancy theory.

6 0
3 years ago
The three "R's" of socially responsible business are "reuse," " recycle," and "____."
vagabundo [1.1K]

Answer:

Reduce

Explanation:

Reduce

Reuse

Recycle!

6 0
3 years ago
Read 2 more answers
TIME REMAINING
Otrada [13]

Answer:

based on the economics , the one that should be the most influential in making the decisions is : the value of resources The value of resources refer the one's capability in spending their resource to get what they want. An entity with low amount of resources , tend to be more careful about how they spent their resource Hope this helps. Let me know if you need additional help!

Explanation:

3 0
3 years ago
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