Answer: Option A
Explanation: In simple words, substitution effect refers to the economic phenomenon which states that when price of one good rises the demand for the alternative of that particular good also rises. For example - coke and pepsi.
On the other hand, income effect states that when the price of a commodity rises, a number of consumers might find it hard to purchase due to the price exceeding their income power which further results in lower demand.
Hence from the above we can conclude that the correct option is A.
<span>the national or federal debt consists of all the money borrowed over the years by the national government that is still outstanding. The national debt is the public and intragovernmental debt owed by the federal government. Two-thirds of the U.S. debt is the Treasury bills, notes and bonds owned by to the public. They include investors, the Federal Reserve, and foreign governments.</span>
Answer:
Hilary is a retired teacher who lives in Miami and does some consulting work for extra cash. At a wage of $50 per hour, she is willing to work 10 hours per week. At $65 per hour, she is willing to work 19 hours per week.
Using the midpoint method, the elasticity of Hilary’s labor supply between the wages of $50 and $65 per hour is approximately 2.37 , which means that Hilary’s supply of labor over this wage range is elastic.
Explanation:
Midpoint elasticity = (Change in labor supplied / Average labor supplied) / (Change in wage rate / Average wage rate)
= [(19 - 10) / (19 + 10) / 2] / [$(65 - 50) / $(65 + 50) / 2]
= [9 / (29 / 2)] / [15 / (115 / 2)]
= (9 / 14.5) / (15 / 57.5)
= 0.62/0.26
Midpoint elasticity = 2.37
Once elasticity is greater than 1, supply of labor is Elastic.
Answer:
P=$40
Explanation:
We will apply constant dividend growth model that is =P = D1 / ( k-g )
P is the price of share ?
D1 is the current divided $2
k is the rate of return 9%
G is the constant growth 4%
P=2/(9%-4%)
P=$40
