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Stella [2.4K]
3 years ago
14

The – effect means Tommy’s – will shift because he has less purchasing power. As a result, he may choose the regular-size steak

instead of the larger "hunter’s portion" he prefers. The – effect means Tommy may spend some of the money he saved by ordering the smaller steak to order a bigger salad.
Business
1 answer:
dimulka [17.4K]3 years ago
6 0

Answer:

The correct answer is: income effect; budget line; substitution effect.

Explanation:

The change in the price of a product has two effects on the consumption pattern of an individual. The increase in price reduces the purchasing power of the consumer as the consumer will now be able to afford a lesser quantity of that product.

This is known as income effect as the real income of the consumer is changing. This change in real income causes the budget constraint to shift.  

Here in the given example, Tommy's real income will change causing his budget line to shift. Tommy will be able to afford regular size steak.  

By saving money on a steak if he orders a bigger salad this shows the substitution effect. In case of price change when a consumer prefers a cheaper alternative it is called the substitution effect.

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Which of the following is an example of an activity undertaken by an​ entrepreneur? A. being promoted to the position of Chief o
luda_lava [24]

Answer:

C) starting a snow cone business

Explanation:

An entrepreneur is someone who decides to start his own business, usually a small business. Only option C refers to starting a new business.

Option A and B refer to positions where you are employed by the government (being a government employee is the opposite of being an entrepreneur).

Option D refers to painting your kitchen not opening a new business.

5 0
3 years ago
Flounder Company had the following stockholders’ equity as of January 1, 2020. Common stock, $5 par value, 20,700 shares issued
MAVERICK [17]

Answer and Explanation:

Date        Account Title and Explanation                            Debit          Credit

Feb 1     Treasury Stock (2000*$19)                                     $38,000

             Cash (2000*$19)                                                                       $38,000

              (Repurchased 2,000 treasury stock @ $19 per)

Mar 1     Cash (870*$17)                                                          $14,790

             Retained Earning {870*($19-$17)}                              $1,740

             Treasury Stock(870*$19)                                                           $16,530

             (Reissued 870 out of 2000 treasury stock @ $17 per)

Mar 18   Cash (530*$13)                                                           $6,890

              Retained Earning {530*($19-$13)}                             $3,180

              Treasury Stock(530*$19)                                                         $10,070

              (Reissued 530 out of 2000 treasury stock @ $13 per)

Apr 22  Cash (510*$21)                                                              $10,710

             Treasury Stock(510*$19)                                                            $9,690

             Paid in Capital from Treasury Stock{510*($21-$19)}                 $1,020

             (Reissued 510 out of 2000 treasury stock @ $17 per)  

 

NOTE : loss of sale should be charges from Retained Earning.

7 0
3 years ago
The Coase theorem states that A) the private sector will fail to produce the efficient amount of a public good because of the fr
Sonja [21]

Answer:

B

Explanation:

One of the problems in economics is the allocation of goods in the presence of externalities. When externalities are present allocation of goods in private market won't be efficient because private parties won't internalize them and would arrive to an inefficient outcome. For many years this was an argument in favor of government intervention.

However, Ronald Coase showed that assigning property rights of the externality to one of the private parties (no matter which one) would result in an efficient outcome. This is because  the parties with the property right would then internalize the cost. Then in the bargaining process private parties would reach an efficient outcome without the intervention of the government.

7 0
2 years ago
You are offered a job that pays ​$42000 during the first​ year, with an annual increase of 10​% per year beginning in the second
Tanya [424]

Answer:

$55,902 is the amount I can expect to earn in the fourth year

Explanation:

Remember Salary increases by 10% each year

Salary in Year 1 : 42,000

Salary in Year 2: 42,000 x 1.1 = $46,200

Salary in Year 3: 46,200 x 1.1 = $50,820

Salary in Year 4: 50,820 x 1.1 = $55,902

6 0
3 years ago
If the price of a pencil is $1.00 and the price of a pen is $2.00, what is the relative price? If the pencil is $1.50 and the pe
Rudiy27
1) the relative price would be about $1.50 I think
2)  $2.00
3 $1.00
If these are wrong let me know please =) sorry if they are
3 0
3 years ago
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