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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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Aleks04 [339]

Answer:

uncertainty avoidance

Explanation:

Based on the information provided within the question it can be said that this is an example of the application of Hofstede's typology under the values which highlight uncertainty avoidance. This term refers to the difference between cultures pertaining to the amount of unpredictability that they can tolerate. Which in this scenario is stating that the Danes have a high tolerance for unpredictability.

8 0
3 years ago
Whats the best pump to bring drinking water from a depth of 20'​
Ulleksa [173]

Answer:

<em>If less than 25’, use a shallow well jet pump</em>

Explanation:

A typical well water system lifts water from an underground well and delivers it to a storage tank where it’s pressurized and stored until it’s needed. Most pumps are electric and use suction to draw the water through pipes.

A motorized jet pump assembly includes the pump that moves the water from the wall and a motor to dive the pump. It’s often paired with a pressure tank, which evens out the water throughout the home.

4 0
3 years ago
e Arlington Motor Pool Internal Service Fund had the following transactions and events during January 2018. Using the "Additiona
Akimi4 [234]

Answer:

Journal Entries

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2) Debit Fuel and Maintenance expense $600, Credit Bank $600

3) Debit Depreciation Expense $amount Credit Accumulated depreciation $amount

4) Debit Insurance Expense $amount Credit Bank $amount

5) Debit Benefit Expense $amount Credit Accrued Benefit Expense $amount

6) Debit Accounts Receivable ( total of all trips) $amount Credit Service Revenue $amount

Explanation:

The Question is incomplete but i will do the typical journal entries to the transactions without figures.

1) The salaries are for one month and in brackets there is a $80,000*1/12 calculation meaning the $80,000 is for the year, now if it was already recorded then we debit salaries payable $6,667 credit bank $6,667

4) Insurance expense is debited if it is paid as it is incurred but if it has an Prepaid insurance account then we credit the Prepaid insurance account instead of Bank.

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givi [52]
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In 2019, Grant's personal residence was completely destroyed by fire. He was insured for 100% of his actual loss, and he receive
tia_tia [17]

Answer:

D) $0

Explanation:

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