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Eddi Din [679]
3 years ago
8

When the price of an inferior good​ falls, the substitution effect leads to​ ________ in the quantity purchased and the income e

ffect leads to​ ________ in the quantity purchased.
a. an​ increase; an increase
b. a​ decrease; an increase
c. a​ decrease; a decrease
d. an​ increase; a decrease?
Business
1 answer:
hammer [34]3 years ago
4 0
When the price of an inferior good falls, the substitution effect leads to an increase in the quantity purchased and the income effect leads to a decrease in the quantity purchased. 

An inferior good is something consumers would purchase only if they had more income so if the price falls, customers are able to afford to use this product as a substitute to an item of lower price that they currently purchase. 
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Answer:

From the list of options, Option A is the only correct one:

"the actual usage of materials was less than the standard allowed".

Explanation:

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<em>Material price variance</em>

A material price variance occurs where materials are purchased at a price either lower or higher than the standard price. A favorable variance is recorded where the actual total cost of materials is lower that the standard cost. While an adverse variance implies the opposite.

From the list of options, Option A is the only correct one

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3 years ago
On December 31, 2016 before adjusting entries, Accounts Receivable for Nickolas Company had a debit balance of $200,000, and the
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Answer:

b. The balance of the Allowance for Doubtful Accounts will be $22,000 after adjustment.

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The growth of industry is related to the growth of immigration in the late 19th century because:
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Mark me as brain list

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2 years ago
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Explanation:

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6 0
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