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3 years ago

What is it called where consumers react to rising prices by consuming less of a good and more of it's competitors?

Business

1 answer:

adelina 88 [10]3 years ago

6 0

Answer:

Substitute Effect

Explanation:

When a product's price increases, it becomes relatively expensive compared to its alternatives. The high price will encourage consumers to choose other goods that are relatively cheaper. Consequently, the price increase reduces the demand for the product while increases the demand for its substitutes.

The substitution effect describes how consumption is affected by an increase or a decrease in a product's price.

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7nadin3 [17]

I think the 2nd option is the answer.

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3 years ago

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Preferred stock: 8 percent, par $10, authorized 20,000 shares. Common stock: par $1, authorized 50,000 shares. The following tra

Zolol [24]

Answer:

Required:

Prepare the stockholders’ equity section of the balance sheet at December 31.

Explanation:

check the file attached for the balance sheet at December 31.

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3 years ago

Buyers will often close the sale for you if you:

Ivenika [448]

If you want to buy it

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3 years ago

Bob Clarke Corporation has provided the following data from its activity-based costing system: Activities Estimated Overhead Cos

AfilCa [17]

Answer:

Total Unit Cost= $ 96.65

Explanation:

Bob Clarke Corporation

Activities Estimated Overhead Cost Expected Activity

Assembly $1,005,040 68,000 machine-hours

Processing orders $102,500 2,000 orders

Inspection $139,840 1,900 inspection-hours

First we find the overhead rates using ABC costing method.

Overhead Rates= Estimated Overhead Cost/ Expected Activity

Assembly Rate= $1,005,040 /68,000 = $ 14.78 per machine-hours

Processing rate= $102,500 / 2,000= $ 51.25 per orders

Inspection Rate= $139,840/ 1,900= $ 73.6 per inspection-hours

Then we find the overhead costs applying the ABC Costing rates

Overhead Costs Of 450 Hockey

Assembly= 710 machine-hours, * $ 14.78= $10493.8

Processing=42 orders, *$ 51.25= $ 2152.5

Inspection= 12 inspection-hours*$ 73.6 = $ 883.2

Total Overhead Costs of 450 Hockey = $ 13529.5

Overhead Cost of One Hockey= 13529.5/450= 30.065= $ 30.07

Then the:

Product Cost

Direct materials cost is $36.42 per hockey stick

Direct labor cost is $30.16 per hockey stick

Overhead Costs is $ 30.07

Total Unit Cost= $ 96.65

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3 years ago

Seth is mentally incompetent but has not been adjudged by a court to be incompetent. Seth enters into a contract with Toby for t

Kaylis [27]

Answer:

Void

Explanation:

Void is the term of law, which is defined as the contract is not valid currently, and the parties of the contract are not held to its terms. The void contract is the one which is generally unenforceable.

The contract could be void because of many reasons like the contract need one party to perform that act which is impossible or in that case, where one party is not mentally incompetent.

So, in this case, the contract is most likely to be void as the contract with the party who is mentally incompetent, though the party has not been adjudged through court.

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3 years ago