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OLEGan [10]
2 years ago
14

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 <em>substitution effect</em> 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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Photon
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3 years ago
If a positive externality in consumption is present in a market, then
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Positive externality is a benefit that is enjoyed by a third party as a result of business transaction. Third parties include any individual, property owner or an organisation or a resource that is indirectly affected. If a positive externality in consumption is present in a market, then the private benefit from a consumption will be different than the social benefit from consumption.
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What is an investment report that is given to potential investors called?
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2 years ago
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Match the financial statement with its description. To match them, click the Description and then click the Financial Report Nam
kherson [118]

Answer:

a-3 / b-2 / c-4 / d-1

Explanation:

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Disclosure is mandatory where there is a known trend or uncertainty that is reasonably likely to have a material effect on the registrant's financial condition or results of operations

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7 0
3 years ago
At May 1, 2020, Sheridan Company had beginning inventory consisting of 190 units with a unit cost of $7.30. During May, the comp
s2008m [1.1K]

Answer:

$6.71 per unit

Explanation:

The computation of average cost method is given below:-

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Therefore, to calculate the average cost per unit for May we simply divide 10,065 from 1,500

7 0
3 years ago
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