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2 years ago

The reason the substitution effect works to encourage a consumer to buy less of a product when its price increases is:

Business

1 answer:

ikadub [295]2 years ago

8 0

Answer:

The correct answer is the option C: the product is now relatively more expensive than it was before.

Explanation:

To begin with, the substitution effect is the term that, in economics, refers to the situation where a products or services increase or decrease its value in comparison with other and therefore it causes a substitution from the consumer regarding that change in the price.

Secondly, in the case where a product increases its price the substitution effect will cause that the consumer decides to purchase other products due to the fact that the first product is now relatively more expensive than it was before and therefore a substitution of the good takes place.

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Why do you think economists can be certain that every

Aleonysh [2.5K]

Answer:

En esta primera parte del libro estudiamos lo que para muchos economistas es la pregunta más

importante de la economía: ¿Por qué algunos países tienen mayores niveles de ingreso por

habitante que otros?

En el capítulo 2 definimos el crecimiento económico y presentamos distintas herramientas

útiles para medirlo y analizarlo. Además, presentamos una breve historia del crecimiento

económico, con especial énfasis en la evolución de la economía argentina en el contexto

mundial.

El capítulo 3 es una introducción a la teoría del crecimiento económico. Presentamos allí un

esquema analítico sencillo, en el cual la inversión y el desarrollo tecnológico aparecen como

los determinantes directos del crecimiento. Además, explicamos algunos de los factores que los

economistas han identificado como determinantes más profundos del crecimiento – aquellos

factores que definen el grado de inversión y de desarrollo tecnológico.

Explanation:

7 0

3 years ago

If the unemployment rate is 5.8% and the number of unemployed persons is 15 million, the labor force is approximately:__________

Delicious77 [7]

Answer: 258 million

Explanation:

The labor force refers to the number of people who are employed and the unemployed who are also looking for work.

Let the labor force be represented by x. Based on the question given, we can form an equation which will be:

5.8% of x = 15 million

0.058x = 15 million

x = 15million / 0.058

x = 258 million

Therefore, the labor force is approximately 258 million.

6 0

2 years ago

Wonder Corporation declared a common stock dividend to all shareholders of record on September 30, 20X3. Shareholders will recei

lesantik [10]

Answer:

C. $0 dividend income and a tax basis in the new stock of $56.25 per share

Explanation:

Existing tax basis

= 300 shares * $90

= $27,000

Latest stocks attributable to stock dividend to be given to Diana,

= 300 * 3/5

= 180

Therefore the total number of shares will be, after dividend,

= 180 + 300

= 480

So new tax basis per share

=27,000 / 480

= $56.25

7 0

3 years ago

Suppose the Digby company shifts focus to only competing in the Thrift and Nano segments, while competing on price by reducing c

Bess [88]

Answer:

Niche cost leader strategy

Explanation:

In simple words, A niche cost pioneer or leader aims to exploit consumer markets that are price responsive. Its objective is to undercut all rivals' costs while remaining sustainable. Under this business strategy, the producer try to create a strong customer base by offering lower prices as it is the best motivation for the customer to try a specific product.

Thus, from the above we can conclude that the correct answer is niche cost leader.

6 0

3 years ago

Which of the following is not an indicator of the business cycle?

Svetach [21]

D Bc it is d is why it is d is correct

4 0

3 years ago