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Ad libitum [116K]
3 years ago
11

Own price increases are associated with decreases in quantity demanded, ceteris paribus. These decreases in quantity demanded ar

e composed of two effects, the substitution effect and the ________________________ effect.
Business
1 answer:
andrew11 [14]3 years ago
3 0

Answer:

Income effect

Explanation:

Own price increases are associated with decreases in quantity demanded, ceteris paribus. These decreases in quantity demanded are composed of two effects, the substitution effect and the<u> Income effect.</u>

We know as per the law of demand, price increases lead to decrease in the quantity demanded if factor remain constant.

Quantity demanded has effect of two other major factors:

  • Subtitution effect.
  • Income effect.

Subtitution effect: It is the price of subtitution goods & services also lead to increase and decrease of demand for any particular goods.

Example: Price of tea and coffee.

Income effect: It is the income of consumer that effect the demand of any goods & sevices, as with the increase in income of consumer, their demand for inferior goods decreases and demand for branded goods increases.

Example: Non branded clothes and branded clothes.

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Below are the transactions and adjustments that occurred during the first year of operations at Kissick Co
Karolina [17]

Answer:

Income Statement Sales 9,00,000 Cost of goods sold 5,80,000 Gross profit 3,20,000 Salaries expense 3,90,000 Rent expense 2,40,000 Utilities expense 38,000 Loss from operations -3,48,000 Interest expense -59,400 Net loss -4,07,400     KI

Explanation:

<em>Purchased $190,000 of store equipment, paying $51,000 in cash and agreeing to Paid the entire $139,000 owed for store equipment and $600,000 of the amount due to suppliers for credit purchases previously recorded. pay the difference within 90 days. that make it a way to create sales.</em>

7 0
3 years ago
You can best deal with visitors that drop into your office by A. telling them you are busy now and suggest an alternative time t
Katyanochek1 [597]
Hi!

That's a funny one xD


The correct answer is A
Tell them you are busy now and suggest an alternative time to talk.

The other options are not good because if you just tell them you are bus now, you will lost the client. They will think you are not care for them. You can't tell them to make an appointment with your assistant because they want to talk with you,not the assistance. OMG always keeping the door closed is the worst xD. It shows that you don't welcomed people so you wouldn't have enough client.


I hope this helps!
4 0
3 years ago
A health drink company is known for launching drinks with flavors which are different from what are offered in the market. It re
Igoryamba

Answer:

D) It invests heavily in advertising and brand building.

Explanation:

One of the greatest step to take in establishing a strong presence in the market place is putting in great efforts towards innovative advertising and ensuring one's brand is built strong, that way, there is established trust and consumers will stay faithful to your brand.

4 0
3 years ago
Read 2 more answers
West Virginia has one of the highest divorce rates in the nation, with an annual rate of approximately 5 divorces per 1000 peopl
liubo4ka [24]

Answer:

Kindly check explanation

Explanation:

Given the data:

x___ f(x)

10__ 0.05

20__0.10

30__0.10

40__0.20

50__0.35

60__0.20

a. Is this probability distribution valid?

Yes

Σf(x) = (0.05 + 0.10 + 0.10 + 0.20 + 0.35 + 0.20) = 1

0≤f(x)≤1

b. What is the probability MCC will obtain more than 30 new clients

X = 40 + x = 50 + x = 60

0.20 + 0.35 + 0.20 = 0.75

c. What is the probability MCC will obtain fewer than 20 new clients

x = 10

f(x) = f(10) = 0.05

d)Compute the expected value and variance of x.

Expected value (E(x)) :

Σ(x * f(x))

= (10*0.05) + (20*0.1) + (30*0.1) + (40*0.2) + (50*0.35) + (60*0.2)

= 43

Σ(x * E(x))² * f(x)

= (10 - 43)^2 * 0.05 + (20 - 43)^2 * 0.1 + (30 - 43)^2 * 0.1 + (40 - 43)^2 * 0.2+ (50 - 43)^2 * 0.35 + (60 - 43)^2 * 0.2

= 201

3 0
4 years ago
If a nonbinding price floor is imposed on a market, then the
Svetllana [295]

if a nonbinding price floor is imposed on a market, then the quantity sold will stay the same.

Here are the options of this question:

  1. then the a quantity sold in the market will stay the same
  2. quantity sold in the market will decrease
  3. price in the market will increase
  4. price in the market will decrease

A price floor is when the minimum price for a good or service is set by the government or an agency of the government. Price floor is usually set for agricultural products. This is done to encourage suppliers of goods and services.

<u><em>Types of price floor</em></u>

  • Binding price floor: this is the price floor that is set above equilibrium price. When the price floor is binding, the supply of a good would increase.  

  • Non-binding price floor: this is the price floor that is set below equilibrium price. When the price floor in nonbinding, there would be no change in supply.

<u><em>An example:</em></u> If the price of a good is $10. The equilibrium price is $12. If the government sets the price as $14. This is a binding price floor. If the price is set below $12, it is a nonbinding price floor.

To learn more about price floors, please check: brainly.com/question/13335147?referrer=searchResults

5 0
2 years ago
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