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juin [17]
3 years ago
13

When the price of a good rises, consumers tend to purchase less of it and buy a relatively less expensive good. This behavior cr

eates ____________ bias in the CPI, so the Bureau of Labor Statistics makes adjustments to the fixed basket of goods.
Business
1 answer:
Anna35 [415]3 years ago
7 0

Answer:substitution

Explanation:The substitution bias is a weakness in the Consumer Price Index that overstates inflation because it does not account for the substitution effect, when consumers choose to substitute one good for another after its price becomes cheaper than the good they normally buy.

when the price of a product in the consumer basket increases substantially, consumers tend to substitute lower-priced alternatives.

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Dock Corporation makes two products from a common input. Joint processing costs up to the split-off point total $33,600 a year.
Alex Ar [27]

Answer:The minimum amount is the price that will give a profit of $3700

Explanation:

The minimum amount the company should accept for product X if it's to be sold at the split off point it's maximum amount they will earn as profit if they sales after further procession.

The total cost the company will incur if they process further it's the cost they incurred at the split off point and at further procession which equals ($16,800+$15,000) =$31,800

On sales after procession they will earn a price of $35500 which means a profit of $3700 this means the firm should sale product X at spilt off point for a price that will bring a minimum profit of $3700.

6 0
3 years ago
The price of good B has a pattern such that P = $20 on Monday through Thursday of every week, and P = $25 on Fridays. If specula
Andru [333]

Answer:

The correct answer is D. increase; decrease.

Explanation:

Speculation consists of the purchase (or sale) of goods with a view to their subsequent resale (repurchase), when the reason for such action is the expectation of a change in the prices affected with respect to the dominant price and not the gain derived from its use, or of some kind of transformation carried out on these or of the transfer between different markets.

A speculative operation seeks not to enjoy the good or service involved, but to obtain a benefit from the price fluctuation based on the theory of arbitration. In an extensive sense, every form of investment that a medium entails is speculative; However, the term is usually applied to that investment that does not entail any kind of commitment to the management of the assets in which it is invested, and is limited to the movement of capital (financial market), usually in the short or medium term.

The speculation is based on the forecast and the perception, so that the speculator can also be wrong if he does not correctly anticipate the evolution of future prices, so he will have to sell cheap something he bought expensive. The speculative market therefore rewards those who know how to predict.

3 0
3 years ago
Sally Fuller is a buyer for GWA publishing company. Her job is to purchase supplies and services for the printing of technical m
nignag [31]

Answer:

B. Pass-through scheme.

Explanation:

Pass-through Billing: Pass-through billing schemes occur when a provider, such as a physician or hospital, pays a laboratory to perform their tests and then files the claims as though they had performed the tests themselves.

8 0
3 years ago
A marketing professor in Ithaca, New York, maintains a museum of failed consumer products. Most new products in this museum fail
Nesterboy [21]

Answer:

test marketing

Explanation:

Test marketing is an experimental test of a product in a real life market. Buyers are studied in live shops or market without them knowing. It is conducted on a small scale to see the effectiveness of a marketing strategy.

When the products do not perform well at the test marketing phase it is assumed it will not also perform well in the real market, so they are termed failed products.

The marketing manager in Ithaca maintains a museum of failed consumer products from the test marketing stage.

4 0
3 years ago
Daniel watched the 95-year-old actor Kirk Douglas present the Oscar for Best Supporting Actress in 2011. Daniel became frustrate
8_murik_8 [283]

Answer:

daniel should have focused on the message and not on the way it was delivered.

Explanation:

If Daniel had focused more on getting the message that was being passed by Kirk Douglas, he would have enjoyed the show more.

But in this case he was more focused on how Kirk Douglas was not accurately forming his words. The more he listened the more frustrated he became.

5 0
3 years ago
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