1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
deff fn [24]
3 years ago
7

Clancy is a bus driver who enjoys donuts and muffins. Suppose that the price of donuts increases. As a result, the purchasing po

wer of Clancy's paycheck is diminished. Therefore, he reduces his consumption of all goods, including donuts. This phenomenon is known as the effect
Business
1 answer:
FromTheMoon [43]3 years ago
3 0

Answer:

INCOME EFFECT

Explanation:

Income Effect means change in real income/ purchasing power due to change in price, income staying same.

  • Price Increase reduces real income/ purchasing power, income staying same - because consumer can purchase less from same income.
  • Price decrease increases real income/ purchasing power, income staying same - because consumer can purchase more from same income.

Eg: Income, price of a consumer = Rs100, Rs10 respectively.

Real Income = Income/price = 100/10 = 10. Price fall to 8 increases purchasing power to 12.5 (100/8). Price rise to 12 decreases purchasing power to 8.3 (100/12).

Income Effect : stating - lower purchasing power at higher prices, reduces consumption of all goods and higher purchasing power at lower prices, increases consumption of all goods.

You might be interested in
They really don’t purchase much, but they like the recreation the outing provides. Which type of shopping activity is this? Grou
algol13

Answer:

experiential shopping

Explanation:

Experiential Shopping is done in order to avoid the boredom and get engaged in an activity, basically for moving out of the room and finally having a view and enjoying it. The goods are purchased without any planning, and only because you saw them and you like them.

This is done in order to recreate peace.

This is done by people to create happiness and internal satisfaction. Shopping do not provide happiness to them unlike impulsive shopping, but the mere thought to go out and enjoy do provides them the happiness they intend to have.

7 0
3 years ago
Read 2 more answers
When you gave your friend a fifty-dollar bill for an iPod, you used money as a
Sonbull [250]
<span>When you gave your friend a fifty-dollar bill for an iPod, you used money as a <u>medium of exchange.
</u><u />This is because you exchanged your money for an iPod. 
</span>
4 0
3 years ago
What is a subsidy wedge? the combined reduction in consumer surplus and producer surplus that results from a subsidy the amount
solmaris [256]

Answer:

the difference between the price that sellers receive and the price that buyers pay, resulting from a subsidy government cheese.

Explanation:

In Economics, subsidy can be defined as the amount of money or benefits such as tax reduction given by the government to sellers in order to sustain production and enable the buy to continuously purchase the product.

A subsidy wedge can be defined as the difference between the price that sellers receive and the price that buyers pay, resulting from a subsidy government cheese.

8 0
3 years ago
Action verbs you might use on a job application
kirill [66]
Accomplished, Achieved, Active in, Awarded, Assisted, Broadened, Built, Chaired, Championed, Completed, Delegated, Distinguished, Enacted, Enhanced, Facilitated, Formulated, Graduated, Granted, Handled, Helped, Implemented, Improved, Increased, Initiated, Joined, Kept, Led, Licensed, Managed, Mastered, Navigated, Netted, Obtained, Outlined, Performed, Placed, Qualified, Received, Recorded, Secured, Served, Taught, Trained, Understudied, Undertook, Verified, Volunteered, Widened, Worked.

Hope these help!!!




4 0
3 years ago
In reviewing the accounting records of the transportation services fund, an internal service fund of douglas city, you notice th
zubka84 [21]

The reason why the fund uses the budgetary accounts because it is most likely needed that the funding budget to be approved legally by the city council in order for the budget funds to be used by the members or people responsible of handling the budgets.

5 0
3 years ago
Other questions:
  • How many owners can own a partnership
    5·2 answers
  • A risk management assessment is a systematic and methodical evaluation of the security posture of the enterprise.
    9·1 answer
  • Temporary workers—often called temps—may not be subject to the contractual obligations or general policies that govern other emp
    9·1 answer
  • Larger vehicles tend to have longer stopping distances than other vehicles because ____
    5·1 answer
  • What is the use of collateral?
    9·1 answer
  • Once a company has diversified into a collection of related or unrelated businesses and concludes that some strategy adjustments
    10·1 answer
  • Your bank account pays an interest rate of 8 percent. You are considering buying a share of stock in XYZ Corporation for $110. A
    8·1 answer
  • In a private closed economy _____ investment is equal to saving at all levels of GDP and equilibrium occurs only at that level o
    6·1 answer
  • purchased inventory for $ 4 comma 500 and also paid a $ 290 freight bill. Corner Market returned 40​% of the goods to the seller
    5·1 answer
  • When a firm produces one more unit of output the total revenue increases from $838 to $973, and the total cost increases from $5
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!