Answer:
Myron gains, while the bank loses.
Explanation:
Fallen in prices is usually cause by deflation i.e a general decrease in the prices of goods and services which enhances the purchasing power of money.
In this case, 5% fall in price will increase the value of the Myron investment with bank and caused bank more money .
Answer:
B. negative, positive
Explanation:
Substitution effect : Price rise of a good makes it relatively expensive, decreases its demand. Price fall of a good makes it relatively cheap, increases its demand.
So: Substitution Effect is always negative as per above explanation.
Income Effect : Price rise of a good decreases real income/ real purchasing power of consumer & reduces demand of all goods. Price fall increases real purchasing power & increases demand of all goods.
Income effect is positive in case of Normal Goods, normal good demand is positively related to income. The effect is negative in case of inferior goods, inferior good demand is negatively related to income.
Hence: Price rise of rice - Substitution effect results in negative change in rice consumption. {∵substitution effect always negative}
Income Effect leads to positive change in rice consumption {∵price rise reduces real income & income effect is negative for inferior goods}
Answer:
Prime costs= $480,000
Explanation:
Giving the following information:
Grin produced 4,000 cameras with the following costs:
Direct materials $400,000
Direct labor 80,000
Manufacturing overhead 320,000
To calculate the prime costs we need to use the following formula:
Prime costs= direct material + direct labor
Prime costs= 400,000 + 80,000= $480,000
Answer:
To file individual tax returns
Explanation:
The IRS 1040 form is a formal document from the IRS that individual taxpayers in the US use to file tax returns. It is a form for filing personal tax returns by US residents. Form 1040 assist an individual in calculating the amount of taxable income. It helps determine the tax amount due or amount of refund to claim from the IRS.
Answer: New medical evidence has been released that indicates a negative correlation between a person's beef consumption and life expectancy.
Explanation: The most consistent explanation with this observation is that new medical evidence has been released that indicates a negative correlation between a person's beef consumption and life expectancy. The medical evidence about correlation between the beef consumption of the people and their life expectancy would significantly affect equilibrium price and the quantity of beef bought negatively.