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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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Jonathan Mfg. adopted a job-costing system. For the current year, budgeted cost driver activity levels for direct labor hours an

Hitman42 [59]

Answer:

C. $ 7,500

Explanation:

Estimated direct labor cost $ 100,000

Estimated direct labor hours 20,000 hours

Predetermined rate per direct labor hours $ 5 per direct labor hour

Actual hours used on a job 1,500 hours

Applied overhead based on the predetermined overhead

rate per direct labor hours

$ 5 per direct labor hours * 1,500 hours $ 7,500

The information regarding machine hours is not relevant to the requirements of the question.

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3 years ago

A bank loaned out 19,000 part of it at 6% interest per year and the rest at 14% per year. if the interest recieved in one year t

Ksju [112]

Let x be the part of 19,000 that was loaned out at 6% such that the remaining 19,000 - x was loaned out at 14%. The interest is calculated by the equation,

I = P x i x n

where P is the principal amount, i is the interest, n is the number of years. Substituting the known values,

2000 = (x)(0.06) + (19000 - x)(0.14)

The value of x from the equation above is 8250.

Hence, 8,250 was loaned out at 6%.

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3 years ago

Equipment was acquired on January 1, 2021, for $33,000 with an estimated four-year life and $2,000 residual value. The company u

Lostsunrise [7]

Answer:

Gain= $850

Explanation:

Giving the following information:

Purchase price= $33,000

Useful life= 4 years

Residual value= $2,000

Sale= $10,600.

First, we need to calculate the annual depreciation:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (33,000 - 2,000)/4= $7,750

Now, we can calculate the accumulated depreciation:

Accumulated depreciation= 7,750*3= $23,250

To calculate the gain or loss, we need to use the following formula:

Gain/loss= selling price - book value

Book value= purchase price - accumulated depreciation

Book value= 33,000 - 23,250= $9,750

Gain/loss= 10,600 - 9,750

Gain= $850

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3 years ago

A nurse is caring for a client with dehydration at the health care facility. the client is receiving glucose intravenously. what

Bond [772]

A gauze pad or bandaid

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3 years ago

Read 2 more answers

Petrenko Corporation has outstanding 2,000 $1,000 bonds, each convertible into 50 shares of $10 par value common stock. The bond

cricket20 [7]

Explanation:

The Journal entry is given below :-

Bonds payable $2,000,000

To common stock $1,000,000

To Discount on common stock $30,000

To Paid in capital $970,000

The calculation of bonds payable, common stock is below:-

For bonds payable

= 2,000 × $1,000

= $2,000,000

For common stock

= 2,000 × 50 × $10

= $1,000,000

For paid in capital

= $2,000,000 - ($1,000,000 - $30,000)

= $970,000

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3 years ago