Answer:
It's called a Normal Good
Explanation:
Normal Goods are a type of goods whose demand shows direct relations with a consumer's income. The consumption of a normal good increases with the increase of a consumer's income, if the income decreases the consumption decreases.
Normal goods have a positive income elasticity of demand. Income elasticity of demand measures the magnitude with which the quantity demanded for a good changes in reaction to a change in income. A normal good has an income elasticity positive, but minor to one.
In this case, if the price of a good increases, the income of the consumer decreases, therefore it consumes fewer quantities of the product. An example of a normal good is Organic food.
An inferior good has an income elasticity of demand negative, meaning that if the income increases, the consumption decreases. An example of an inferior good is margarine if the income increases, consumers will start buying a superior product like butter.
A Luxury good presents an income elasticity of demand superior to one. The consumption of a luxury product increases more than proportional to the increase in income. An example of a luxury good is luxury cars.
Answer:
correct option is b. $36
Explanation:
given data
bought = $1,000 par convertible
convertible into common = $32 per share
bond market price increases = 12.5%
solution
we know that conversion ratio is fixed when the convertible security are issued and it does not change
we have bond is issued with a conversion price = $32
so as per each bond converting conversion ratio will be
conversion ratio = 
= 31.25 : 1
so by every bond which is converted , then receives = 31.25 share
so now bond price will be = $1125
parity price of the stock will as = 
parity price of the stock = $36
correct option is b. $36
Answer:
as the ease of converting an asset into cash.
checking account
Explanation:
Liquidity refers to the ease of converting an asset into cash. Cash is the most liquid asset. While assets like real estate are less liquid because it is difficult to convert it to cash as their a lot of processes that must be undertaken before real estate can be converted to cash.
Checking account is the most liquid because it can be easily converted to cash.
Answer:
representativeness bias
Explanation:
Representativeness bias -
It is also known as representativeness heuristic .
Heuristics refers to the use of some mental shortcuts during the process of judging or decision making .
The term representativeness heuristic was first given in the year 1970 , by psychologists Daniel Kahneman and Amos Tversky .
The use of heuristic for making any judgement by the use of comparison , is referred to as representativeness heuristic .
The process involves comparison with some predefined object or situation , with the new object or scenario , makes the process of understanding much more easier .
Hence , from the given information of the question ,
The correct term is representativeness heuristic .
Answer:
Fixed price contract
Explanation:
A fixed price contract states that price for services rendered is fixed as mentioned in the contract irrespective of time taken and resources used.
Price cannot be revised in case effort and time has increased more than expected. In this case, Mister Plow cannot ask for more money as service contracts are fixed price contracts and terms of contract including price cannot be changed.
