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3 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]3 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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Rauch Incorporated leases a piece of equipment to Donahue Corporation on January 1, 2017. The lease agreement called for annual

REY [17]

Answer:

87 because he

Explanation: add then multiply;

6 0

3 years ago

Having just finalized its new tablet design, Epic Electronics's marketing team plans to begin a rollout with ________ to only on

wlad13 [49]

Answer:

Exclusive distribution; Selective distribution; Intensive distribution

Explanation:

Exclusive distribution refers to the phenomenon where only certain retailers are given the opportunity to carry the product in their retailer shops. For example as in the above case, only one store is exclusively chosen.

Selective distribution is that retailers are carefully selected to engage in the product of selling. For example only a few stores are engaged with in the above question.

Intensive distribution is when all kind of retailers are given the opportunity to keep the products in their shops. For example the last phase described in the question where all sorts of retailers are engaged in selling activity.

4 0

4 years ago

Esquire Comic Book Company had income before tax of $1,550,000 in 2021 before considering the following material items: 1. Esqui

olga2289 [7]

Answer:

Esquire Comic Book Company

Income Statement

For the Year Ended December 31, 2021

Operating income $1,550,000

Restructuring costs ($60,000)

Income from continuing operations b/ Taxes $1,490,000

Income tax expense ($372,500)

Income from continuing operations $1,117,500

Discontinued operations:

Operating income $610,000
Loss on disposal ($395,000)
Income tax on discontinued operations ($53,750)

Income from discontinued operations $161,250

Net income $1,278,750

Explanation:

Income from discontinued operations must be reported separately, but any restructuring costs must be included as operational expenses.

3 0

3 years ago

The Weimer Corporation wants to accumulate a sum of money to repay certain debts due on December 31, 2030. Weimer will make annu

valentinak56 [21]

Answer:

the fund balance is $1,727,056.25

Explanation:

The computation of the fund balance is shown below:

Given that

PMT = $125,000

NPER = 10

RATE = 7%

PV = $0

The formula is shown below:

= -FV(RATE,NPER,PMT,PV,TYPE)

After applying the above formula, the fund balance is $1,727,056.25

Here basically the future value formula should be applied

7 0

3 years ago

Future economic trends are not influenced by economic theories. True or false?

nikklg [1K]

That statement is false.
Economic theories will determine how companies see the market and will somehow affect the decision that they will make for the market.
This decision will influence the future economic trends because these companies usually are really forward thinkers. From this, we could draw a correlation between future economic trends and economic theories

5 0

3 years ago