1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
saul85 [17]
3 years ago
13

Suppose Jose splits his spending across scones and coffees. Due to droughts in coffee-producing regions, the price of coffee dou

bles. How will the income and substitution effects affect his spending on scones?
Business
1 answer:
Slav-nsk [51]3 years ago
7 0

Answer:

He will be less likely to spend on scones.

Explanation:

Understanding the spending pattern requires to understand the factors involving in purchasing.

  1. Income: Some people live tightly, and for that they have to cut down their expenditures and that affects their spending. Jose will not have much issues although buying scones because they will not be expensive, so this relationship is negative.
  2. Substitution: This will probably affect the the spending of Jones on scones because he used to buy both together, and if he stops spending on coffee he will not buy scones as well.
You might be interested in
Ryan is deciding between attending Western State University and Eastern State University. He cannot attend both universities sim
Alenkasestr [34]

Answer:

attend Eastern State​ University, if MUE/PE EXCEEDS MUW/PW

Explanation:

A rational individual will always choose the alternative that provides the highest marginal utility per dollar invested.

If MUE and MUW represent the marginal utilities, and PR and PW represent the prices, Ryan should attend the university that provides the highest utility per dollar, i.e. the highest MU and the lowest P.

He should attend Eastern State University if the MUE/PE (marginal utility per dollar of Eastern State University) is higher than MUW/PW (marginal utility per dollar of Western State University).

7 0
4 years ago
item 2 if, in the market for money, the quantity of money demanded exceeds the money supply, the interest rate will
Oksanka [162]

The market for money, the quantity of money demanded exceeds the money supply, the interest rate will It will rise, and households and businesses will have less money.

When demand exceeds supply, people sell assets such as bonds for money. This increases the supply of bonds, lowering bond prices and increasing market interest rates.

When money demand increases, the money demand curve shifts to the right and nominal interest rates rise. Conversely, when the demand for money decreases, the demand curve for money shifts to the left and interest rates fall.

To understand why interest rates are falling, remember that people who want to hold less money want to hold more bonds. Panel (b) therefore shows an increase in demand for bonds. High bond prices mean low interest rates. When interest rates fall, financial markets are rebalanced.

Learn more about demand exceeds brainly.com/question/29311439

#SPJ4

5 0
1 year ago
Chuck, a single taxpayer, earns $79,000 in taxable income and $10,000 in interest from an investment in City of Heflin bonds. (U
Usimov [2.4K]

Answer:

Base        98900 79000

tax excess 85525 40125

Excess         13375 38875

%                    24%    22%

tax  1         3210 8552.5

 

tax 2 additional 14605.5 plus  24% of the excess 85.525

                                               4617.5 plus  22% of the excess 40.125

total tax (tax1+tax2) 17815.5__13170

 

Change in tax  

(17.815 - 13.170) / (98,900 - 79,000) =  

4.645,5 / 19.900 = 23.34%

Explanation:

Base        98900 79000

tax excess 85525 40125

Excess         13375 38875

%                    24% 22%

tax  1         3210 8552.5

 

tax 2 additional 14605.5 4617.5

total tax                17815.5 13170

 

Change in tax  

(17.815 - 13.170) / (98,900 - 79,000) =  

4.645,5 / 19.900 = 23.34%  

8 0
3 years ago
Financial institutions that lend the funds that savers provide to borrowers. a. mutual funds c. pensions b. premiums d. financia
Dennis_Churaev [7]
Hello there.

Financial institutions that lend the funds that savers provide to borrowers, financial intermediaries.
5 0
3 years ago
Read 2 more answers
The Babylonians in Sumer used what as a monetary commodity
Minchanka [31]
They used the shekel
8 0
4 years ago
Other questions:
  • When an organization uses ______ as the primary criterion in selection, it often ends up not getting the best person for a parti
    5·1 answer
  • What are the six stages of business
    8·1 answer
  • You’re thinking of buying one of two firms. One has a profit margin of $4 per unit; the other has a profit margin of $10 per uni
    9·1 answer
  • Financial functions format calculated values as currency, with _______. Question 3 options: a) positive cash flow appearing in r
    9·1 answer
  • Increasing your responsibility will increase your value to the company. T or F
    13·2 answers
  • Cost of Goods Manufactured for a Manufacturing Company Two items are omitted from each of the following three lists of cost of g
    9·1 answer
  • Can someone help me please? I attached the question and table. THANKS!!
    13·2 answers
  • Two profit-maximizing firms - Firm A and Firm B, have identical marginal cost curves and face identical demand. However, Firm A
    7·1 answer
  • What is the next step after the irs accepts your return.
    12·1 answer
  • Explain how the united states has both market and social justice aspects of health care.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!