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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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Rantly Corp. is eliminating its desktop computer repair center in Minnesota. Meanwhile, the demand for mobile device repair—a se
Readme [11.4K]

Answer:

(B) transfers

Explanation:

As the repaird center will be eliminated the jobs positions in Mineesota will decrease thus, creating a labor surplus.

Reduced wages and demotions aren't the way to solve this as this people would not have a job once the center is eliminated.

The Miinnesota center will close so hiring will stop there anyway.

Besty should decide wether to try to transfer some employees or offer early retirement.

<u>Assuming</u> the qualities requirement for mobile are similar to computer and the employees are willing to do so, Betsy <u>can create a trasnfer program</u> for his Minnesota employees.

This will save up the time and cost for recruiting in Miami also, this employees already now the culture organization and reduce the surplus in Minnesota which, is the goal asked for the headquarters

5 0
3 years ago
Judy's Boutique just paid an annual dividend of $3.31 on its common stock. The firm increases its dividend by 3.75 percent annua
Elina [12.6K]

Answer:

Cost of equity = 11.87%

Explanation:

Cost of equity is defined as the amount that a business pays to its equity investors or shareholders as compensation for the risk of finding the business.

Usually businesses may not have enough capital to run their operations properly in meeting organisational goals. So they seek for funding from investors, and these investors are compensated for giving the business capital.

The formula for cost of equity is

Cost of equity={ (Dividend * Growth rate) ÷ Current stock price} + percentage increase in dividend)

Cost of equity={ (3.31 * 1.0375) ÷ 42.28} + 0.0375)

Cost of equity= (3.434 ÷ 42.28) + 0.0375 = 0.1187

Cost of equity = 11.87%

8 0
2 years ago
Read 2 more answers
Difference between real flows and monetary flows​
UkoKoshka [18]
Real flows refer to the flow of the actual goods or services, while money flows refer to the payments for the services (wages, for example) or consumption payments.
3 0
3 years ago
Software Distributors reports net income of $58,000. Included in that number is depreciation expense of $11,500 and a loss on th
egoroff_w [7]

Answer:

                   Software Distributors

            Statement of cash flows (partial)

Cash flow from operating activities:  

Net income                                                     $58,000

Adjustments to reconcile net income to

net cash flows from operating activities

Add: Depreciation expense                            $11,500

Add: Loss on sale of land                                $5,300

Add: Decrease in accounts receivable          $28,000

Add: Decrease in inventory                            $16,500

Add: Increase in accounts payable                <u>$48,000</u>

Net cash flow from operating activities       <u>$167,300</u>

6 0
3 years ago
Firms with a(n) _________________ orientation spend little on marketing research and planning, target customers indiscriminately
cupoosta [38]

Answer: Sales Orientation

Explanation:

Sales-oriented firms are business firms that focus most of their efforts on developing a sales force to promote and sell their products or services. Sales oriented spend little on spend little on marketing research and planning, target customers indiscriminately. The approaches carried out by sales oriented companies, are usually done through door-to-door sales, phone calls, and other face-to-face interactions with potential clients or prospects. The sales force is usually the most important asset of the company and is the main driver of its success and profitability.

7 0
3 years ago
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