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3 years ago

What do the income effect, the substitution effect, and diminishing marginal utility have in common?

Business

1 answer:

Sveta_85 [38]3 years ago

3 0

Answer:

They all help explain the downsloping demand curve

Explanation:

The options to the question wasn't provided. The complete question can be in the attached image.

The demand curve slopes downward from left to right. This indicates that the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.

Income effect is a change in quantity demanded when real income change. Quantity demanded increases when real income increases and decreases when real income falls.

Substitution effect says that consumers would substituite to the consumption of a cheaper good when the price of a good originally consumed increases.

Diminishing marginal utility states that as consumption increases, utility derived from consumption falls and quantity demanded falls.

I hope my answer helps you

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Matthew Liotine's Dream Store sells water beds and assorted supplies. His best-selling bed has an annual demand of 395 units.

Sergeu [11.5K]

Answer:

77.48 units

Explanation:

Data provided in the questions

Annual demand = 395 units

Ordering cost = $38

Holding cost per unit per year = $5

The computation of the economic order quantity is shown below:

$= \sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}$

$= \sqrt{\frac{2\times \text{395}\times \text{\$38}}{\text{\$5}}}$

= 77.48 units

hence, the economic order quantity is 77.48 units

We simply applied the above formula so that approximate units could come. And it always expressed in units

8 0

3 years ago

67 people of 350 surveyed gave your company five stars. Of men, 40 out of 175 gave your company five stars. Was your company rat

marishachu [46]

Answer:

The company was rated 5 stars more by Men

Explanation:

Given that

General population = 67/350

Men = 40/175

In checking the percentage ratio, we have

a. General population

= (67/350) × 100

= 19.14%

b. Men population

= (40/175) × 100

= 22.85%

Thus, seeing that 22.85% > 19.14%, therefore, company was rated 5 stars more among the men population.

5 0

3 years ago

Sudoku Company issues 29,000 shares of $8 par value common stock in exchange for land and a building. The land is valued at $245

Alexeev081 [22]

Answer:

The Journal entry is as follows:

Land A/c Dr. $245,000

Building A/c Dr. $374,000

To Common stock, $8 par value $232,000

To Paid-in capital in excess of par value, common stock $387,000

(To record issuance of the stock in exchange for the land and building)

Workings:

Common stock = $8 × 29,000 shares

= $232,000

5 0

3 years ago

On January 1, 2009 the accounts receivable and the allowance for doubtful accounts carried balances of $20,000 (debit) and $500

denis23 [38]

Answer:

The net realizable value of receivables appearing on the 2009 balance sheet is $14,250

Explanation:

First, we need to calculate the balance of account receivables

Ending balance = Beginning Balance + Credit sales - Cash collected - Bad debt written off

Where

Beginning Balance = $20,000

Credit sales = $100,000 x ( 100% - 30% ) = $70,000

Cash collected = $74,550

Bad Debt written off = $550

Placing values in the formula

Ending balance = $20,000 + $70,000 - $74,550 - $550 = $14,900

Now, we need to calculate the balance of allowance for doubtful accounts as follow

Ending Balance = Beginning balance + Bad debt Expense - Bad debt written off

Where

Beginning balance = 500

Bad debt expense = $70,000 x 1% = $700

Bad debt written off = $550

placing values in the formula

Ending Balance = $500 + $700 - $550 = $650

Now calculate the balance of realizable value of account receivables as follow

Net realizable value of receivables = Ending balance of receivables - Ending balance of allowance for doubtful accounts = $14,900 - $650 = $14,250

6 0

3 years ago

Amazon's latest attempt to shore up and enhance its competitive barriers by introducing a home service marketplace that may help

fenix001 [56]

Answer:

<u>Customer excellence</u>

Explanation:

Amazon's latest attempt to store up and enhance its competitive barriers by introducing a home service marketplace that may help it achieve a lasting , powerful advantage is an example of<em> Customer Excellence.</em>

Customer excellence help a company in attracting the customer towards it. Customer excellence can be achieve by making your customers happy, by providing them good quality of goods, by listening their grievances , by providing them after sale service which is an important thing , by never saying no to them , always provide help to them .

Employees of the company should always be attentive towards the need of the customer .They should have complete knowledge of the product so that customer have no doubt regarding the product at the time of purchasing. He should have the ability to read the mind of the customer and understand his need .

4 0

3 years ago