Answer:
Substitution Effect outweighs Income Effect ; Labour Supply Curve between wages will be upward sloping. OR :-
Income Effect outweighs Substitution Effect ; Labour Supply Curve between wages will be backward bending
Explanation:
Relationship between wage rate & labour supply can be explained by two effects :
- Substitution Effect : Higher wage means more opportunity cost of leisure, so labourer would substitute leisure by working hours. This would imply increased labour supply.
- Income Effect : Higher wage means more income. At higher income, consumer demands more of all goods, including leisure. So that would imply labourer preferring more leisure, decreased labour supply.
Wage rate change from $20 to $25 is a case of wage rate increase
If substitution effect > income effect, labour supply would increase as a result of wage rise ( from $20 to $25). So, the labour supply curve would be upward sloping
If income effect > substitution effect, labour supply would decrease as a result of wage rise ( from $20 to $25). So, the labour supply curve would be backward bending
D. suitability for the product and ability to make the purchase
The steps for finding the EOQ in a quantity discount model with variable H are:
- The optimal point is the quantity that yields the lowest cost
- Start with the lowest price
- If the minimum point is feasible
- Otherwise, compare total costs
What is the Economic Order Quantity(EOQ)?
The Economic Order Quantity is the ideal quantity of units a company should purchase to meet demand while minimizing inventory, costs such as holding costs, shortage costs, and order costs.
The economic order quantity formula assumes that demand, ordering and holding costs all remain constant.
Learn more about Economic Order Quantity here:
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Answer:
$49,000
Explanation:
Donna's net worth is the total value of her assets minus the total value of her liabilities.
Donna's total assets = $142,000 + $1,000 = $143,000
Donna's total liabilities = $63,000 + $18,000 + $13,000 = $94,000
Donna's net worth = $143,000 - $94,000 = $49,000
