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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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In a defined benefits plan, the employer bears the investment risks in funding a future retirement income benefit. true false
yanalaym [24]

It is True, In a defined benefits plan, the employer bears the investment risks in funding a future retirement income benefit.

Who bears the chance in defined benefits plan?

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What's the risk of defined benefits plan?

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Who benefits most from a defined benefits plan?

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7 0
2 years ago
A Condominium owner files a declaration with the county clerk which divides his individual ownership and ownership in common ele
Degger [83]

Answer:

subdivision

Explanation:

A real property subdivision takes place when a real property (parcel of land, house, etc.) is divided into smaller areas. The whole idea behind a subdivision is that it should be easier to sell the property in smaller parts.

When a subdivision is carried out on a condominium, the physical space is not divided, rather the property time is divided into time share units. In this case, a person can purchase the right to use that condominium during 3 weeks each year.

4 0
3 years ago
Tucker Company makes chairs. Tucker has the following production budget for January - March. January February March Units Produc
Mademuasel [1]

Answer:

Tucker Company

The number of board feet of wood that Tucker needs to purchase in February is:

=  46,297.

Explanation:

a) Data and Calculations:

Production Budget

                                               January   February      March      Total

Units Produced                         11,297       12,205      9,276   32,778

Board fee for each chair             4                4                4           4

Total board feet required       45,188       48,820     37,104    131,112

Board feet required               45,188       48,820     37,104    131,112

Ending Materials Inventory    9,764           7,421

Beginning Materials Inventory     (0)        (9,764)     (7,421)

Purchase of board feet        54,952      46,297

3 0
3 years ago
Your portfolio consists of an index mutual fund which represents the overall market and Treasury bills. The mutual fund has a po
pshichka [43]

Answer:

8.01%

Explanation:

Expected return on mutual fund = Risk-free rate + Market risk premium*Beta

Expected return on mutual fund = 3% + 7.7%*1

Expected return on mutual fund = 10.70%

Best estimate of the portfolio expected rate of return = Weight of  mutual fund*Expected return on mutual fund + Weight of  risk-free Treasury bills*Expected return on risk-free  Treasury bills

Best estimate of the portfolio expected rate of return = 65%*10.70 + 35%*3

Best estimate of the portfolio expected rate of return = 0.08005

Best estimate of the portfolio expected rate of return = 8.01%

7 0
2 years ago
A bank loaned out ​$19 comma 00019,000​, part of it at the rate of 7 %7% per year and the rest at 15 %15% per year. If the inter
Alla [95]

Answer:

Explanation:

Let x be the amount loaned at 7% and ($19,000 - x) be the amount loaned at 15%

Given:

Interest incurred at 7%, I1 + Interest incurred at 15%, I2 = $2000

Interest, I = amount × rate

I1 = 7/100 × x

I2 = 15/100 × ($19,000 - x)

From the above expressions,

(0.07)x + (0.15) × ($19,000 - x) = $2,000

Solving for x,

0.07x + 2850 - 0.15x = 2000

Collecting like terms,

0.08x = 850

x = $10625

The amount loaned at 7% interest is

$10625

The amount loaned at 15% interest is ($19000 - $10625)

= $8375

6 0
2 years ago
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