If stock prices go up and people feel richer, aggregate demand will increase.
<h3>What is the wealth effect?</h3>
The wealth effect is an economic theory which postulates that consumer spending increases when consumers perceive that their is an increase in the value of their assets(wealth). Consumer spending increases even if there is no increase in income.
So when the stock prices increases, aggregate demnand would increase.
To learn more about the wealth effect, please check: brainly.com/question/26960365
Answer:
a widely held but fixed and oversimplified image or idea of a particular type of person or thing.
The break-even point is calculated as -
Break-even point (in units) = Fixed cost ÷ Contribution margin per unit
Here,
Selling price = $ 21.95
Variable cost (manufacturing costs) = $ 14.92 (since, costs bifurcation is not given, the manufacturing costs are taken as variable costs)
Contribution per unit = Selling price - Variable cost (manufacturing costs)
Contribution per unit = $ 7.03
Fixed cost (monthly) = $ 8500
Now,
Break-even point (in units) = $ 8,500 ÷ $ 7.03
Break-even point (in units) = 1,209.1 or 1210 games
Economist Thomas Piketty criticized executive compensation levels and thought CEOs should be satisfied with: reduced pay.
<h3>What does Piketty saw about the high wage of CEOs?</h3>
According to this bestselling economist, he attributed the high rate of wage that CEOs receive to be a reason for the inequality experienced in the society.
According to him, a nation cannot be said to be growing when individual wealth is higher than the GDP of the nation.
Read more on Thomas Piketty here: brainly.com/question/17126906
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