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OLEGan [10]
3 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]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 <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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An advantage of tradable emissions permits is that: Group of answer choices they provide incentives for firms to develop technol
mars1129 [50]

Answer:

they provide incentives for firms to develop technologies that are less polluting.

Explanation:

Pollution can be defined as the physical degradation or contamination of the environment through an emission of harmful, poisonous and toxic chemical substances.

Offset trading refers to a type of trading system that is typically designed for the realization of more efficient pollution control.

This ultimately implies that, it can be described as a program that allows new firms to pay existing firms to reduce their emissions below a standard.

Free market in tradable pollution permits simply means giving manufacturing companies and individuals the legal right to pollution of the environment. For example, XYZ company is purchasing the permit of 500 units of carbon dioxide (CO2) pollution annually, this simply means it is permitted to pollute the environment by 500 units of CO2 annually.

Additionally, a free market in tradable pollution permits has some sort of benefits as companies can resell their unused permits or devise a cheaper means of reducing pollution. It also compensate companies that significantly reduces its pollution of the environment.

Hence, an advantage of tradable emissions permits is that they provide incentives for firms to develop technologies that are less polluting because it would reduce the amount they would have to pay for pollution.

3 0
3 years ago
Nations will attract investment and its citizens will engage in productive activities when the institutions and policies of that
Varvara68 [4.7K]

Answer:

Explanation:

All of the above.

Companies will be attracted to nations that encourage market exchange and not restrict it, reward innovation, and protect people and property,

4 0
3 years ago
A. Define supply as an economist would. B. List and explain three (3) non-price factors that will shift the supply curve. C. If
Paladinen [302]

Answer:

A: Refer the detail below

B: Refer the detail below

C: Refer the detail below

Explanation:

A. Definition of Supply

Supply is an economic term that refers to the quantity of a given product or service that suppliers are willing to offer to consumers at a given price level at a given period. Supply is positively related to price given that at higher prices there is an incentive to supply more as higher prices may generate increased revenue and profits

B. Non-price factors that will shift the supply curve

1. Producer input costs

2. producer expectation

3. The number of sellers.

C. Impact of Fountain Pens market

If the cost of production of fountain pens falls, producers can produce more goods by using the same amount of money. Therefore, the supply will increase and the supply curve will shift to the right.

5 0
3 years ago
Net credit sales = $400,000 Net income = $100,000 Average total assets = $80,000 Average accounts receivable = $20,000 What is t
Romashka [77]

Answer:

73 days

Explanation:

average collection period = number of days in a period / receivables turnover

receivables turnover = revenue / average receivables = $100,000 / $20,000 = 5

average collection period = 365 / 5 = 73 days

I hope my answer helps you

5 0
3 years ago
Pension data for Coda Corporation included the following for the current calendar year: Service cost $ 112,000 PBO, January 1 81
spayn [35]

Answer:

Pension expense   $100,000

Explanation:

The computation of the pension expense for the year is shown below:

Service cost   $112,000

Interest cost $64,800 ($810,000 × 8%)  

Amortization of prior service cost $6,600

Amortization of net loss $2,600

Less: Expected return on plan assets -$86,000  ($860,000 × 10%)

Pension expense   $100,000

4 0
3 years ago
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