Answer:
the fact that the higher price of Raisin Bran relative to its substitutes, such as Cheerios, causes consumers to buy less Raisin Bran.
Explanation:
the substitution effect arises when as a result of a rise in the price of a good, the good becomes more expensive relative to its substitutes. Consumers not consume less of the good and more of the substitute. This leads to a movement up along the demand curve for that goods and not a movement along the demand curve for the good and not a shift of the demand curve.
If the price of the good increases. The good becomes cheaper when compared with substitutes. As a result, the demand for the good increases while that of the substitutes decreases.
The income effect is when an increase in price lowers consumer's purchasing power, holding money income constant.
At high price levels, demand tends to be elastic and the price effect is small relative to the output effect.
Option B
Brian could be considered frictionally unemployed.
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Explanation:</u></h3>
Workers dropping their jobs or fresh workers enrolling the workforce both append to frictional unemployment. Frictional unemployment usually transpires even in a developing, solid economy. The frictional unemployment rate is determined by dealing with the workers actively seeing jobs by the total labor force.
Frictional unemployment is advantageous to an economy since it's a sign that individuals are attempting more desirable states. Frictional unemployment can be conquered by suddenly rivaling proposed job seekers with job opportunities. Frictional unemployment isn't devastating to economics.
In the <span>1920s, many rural banks failed because of the failure of the farms to produce the bumper crops they were producing previously. The farmers had invested heavily in machinery and storage facilities. They drop in production meant that the investment did not recover and they failed to pay their loans back. </span>
