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Sauron [17]
4 years ago
8

The substitution bias in the consumer price index refers to the idea that consumers ________ the quantity of products they buy i

n response to price, and the CPI does not reflect this and ________ the cost of the market basket.
a. change; over-estimates
b. change; under-estimates
c. do not change; over-estimates
d. do not change; under-estimates
Business
1 answer:
yanalaym [24]4 years ago
7 0

Answer:

Option C

Explanation:

Substitution bias identifies a potential distortion in economic indicator statistics as it does not include data on customer purchases that moves from comparatively more costly goods to inexpensive ones as rates shift. Substitution prejudice arises as the quality of products varies compared to each other.

The substitution prejudice relates to the Consumer Price Index flaw that exaggerates inflation as it does not take into consideration the substitution effect as buyers want to swap one good for another when their demand is higher than the commodity they usually purchase.

Thus, from the above we can conclude that the correct option is C.

                             

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Jordan issued 10-year, 11% bonds with a par value of $110,000. Interest is paid semiannually. The market rate on the issue date
liubo4ka [24]

Answer:

$110,000 on maturity

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Explanation:

Jordan will pay $110,000 at maturity date with 20 payments of  $6050 as interest

11% bonds at par value = $110,000

Interest paid = Semiannually

Market rate = 10%

At maturity, the par value will be paid as the par value of Jordan issued bonds is 110,000, therefore, Jordan will pay 110,000 on the maturity date.

As the bonds are issued for 10 years with semiannual payments that will be like 20 payments of $6,050 (110,000 x 10% x 6/12)

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Ill give 25 points for it
Harrizon [31]

Two ways by which Customer Service and Support can affect sales are:

  • Distributing marketing information
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<h3>What is the benefit of customer service and support to sales?</h3>

Customer service and support is very important to businesses because it helps them to deal with their customers which are very important to them making sales and profit. In order words, the work of customer service and support is very important to the profitability of a company.

One way that customer service and support can influence sales is by distributing marketing information. For instance, if a customer has an issue, the customer service rep can refer them to some marketing information. Customer service can also lead to increased sales when they engage in personalization and responsiveness and this makes the customer feel appreciated and thereby likely to patronize a company again.

Find out more on customer service at brainly.com/question/26546102

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Answer: A.dividends

Explanation:

Dividends are cash payments made to shareholders of a firm out of its profits.

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Stock payment is all forms of payment made to shareholders. It can include payment with dividends or property.

Share Repurchase is when a company purchases its shares from shareholders in the open market. It reduces the amount of shares outstanding.

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Cash received prior to delivering a product or performing a service is called what
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A deposit for services
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