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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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Answer:

d

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This would reduce the amount of inputs that they have available for <em>regular cars</em> and so they will make less <em>regular cars. </em>

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3 years ago
You need to decide whether to fight a small fire using a portable fire extinguisher.
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Answer:

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8 0
3 years ago
Read 2 more answers
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schepotkina [342]

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5 0
3 years ago
Polk Company manufactures basketballs. Materials are added at the beginning of the production process and conversion costs are i
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Answer and Explanation:

The computation is shown below:

a.

1. Calculation of the equivalent units

<u>Particulars         Physical units   %     Material   %      Conversion cost</u>

Units transferred

out                          900             100%    900     100%     900

Ending

work in process     600            100%     600     40%       240

Equivalent

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2. Cost per equivalent unit is

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period                $2,400            $2,820

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Divided by

Equivalent

units                   $1,500            $1,140

Cost per

equivalent unit    $2.1              $3

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= (3 + 2.1) × 900

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Ending work in process              $1,960

Total cost accounted as             $6,570

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