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Soloha48 [4]
3 years ago
13

For most normal goods the income effect and the substitution effect work in the same direction; so when the price of a good fall

s, both the income and substitute effects lead to a higher quantity demanded. How would this change if the good is an inferior good?
Business
1 answer:
bezimeni [28]3 years ago
8 0

Answer:

The income effect and substitution effect work in opposite directions and income effect is dominant.

Explanation:

In case of a normal good, both the income effect as well as substitution effect work in the same direction. A fall in the price of a product will increase the purchasing power of the consumer so its quantity demanded will increase.  

The consumers will also prefer the cheaper good so the substitution effect will cause the quantity demanded to increase.  

In case of an inferior good, however, income elasticity is negative. The income effect and substitution effect work in opposite directions.  

A price decrease in the case of an inferior good will increase the real income and purchasing power of the consumer. This will cause the quantity demanded of the inferior good to decline as the consumer will prefer a substitute normal good.

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Last year, being a non-leap year, there were 365 days  
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3 years ago
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When the auditors of a nonpublic company are unable to comply with generally accepted auditing standards, they should issue an o
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Answer:

The correct answer is B. False.

Explanation:

An unqualified or normal opinion is issued in the event that the auditor, after obtaining sufficient and competent audit evidence, is fully satisfied with the reasonableness of the financial statements and their preparation in accordance with generally accepted accounting principles and standards applied to a base consistent with previous years. This satisfaction of the auditors is presented in the report in a clear and affirmative manner.

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3 years ago
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Assuming the options are:

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c. No, because Gamma has a legal and ethical duty to make sure that foreign suppliers maintain working conditions that meet or exceed American standards.

d. Yes, because Gamma cannot be expected to investigate and oversee all of their suppliers, and Gamma is not doing anything wrong

The answer is B. Gamma has a responsibility to ensure that its workers, including those working indirectly for the company, are being treated fairly. This is a key ethical concept in international business, and often a source of controversy, as many large American companies outsource low-cost labor, and often the conditions that these employees work in are far from fair. 

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Answer:

bad debt expense for the year 2016: 11

Explanation:

We can solve for bad debt expense doing the following

beginning allowance

- write-off accounts

+ bad debt expense

Equals to ending allowance

<u>We plug our values: </u>

2016 Beginning  allowance      32

(Ending 2015)

write-off                                     (12)

bad debt expense                  <u>    ?   </u>

2016 Ending  allowance            31

And solve for bad debt expense:

Bad debt expense = 12 + 31 - 32 = 11

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If Talia is likely to be hired as the manager at the MNC, she is to expect the following;

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