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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.
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depreciable amor 10.95 dollars per Activity 2 base cost object.

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3 years ago
People pursue _____________ projects in the market and ____________ projects in government.
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Given: Cost of goods manufactured of $410,000; beginning finished goods inventory of $110,000 and ending finished goods inventor
Dafna1 [17]

The unadjusted cost of goods sold is $395,000

<h3>What is cost of goods sold?</h3>

Cost of Goods Sold (COGS) is what measure the direct cost incurred in the production of any goods or services.

The unadjusted cost of goods is computed as:

= Cost of goods manufactured - ( Ending finished goods -Beginning finished goods inventory )

= $410,000 - ( $125,000 - $110,000)

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= $395,000

Hence, the unadjusted cost of goods sold is $395,000

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5 0
2 years ago
The U.S. imposes substantial taxes on cigarettes but not on loose tobacco. When the tax on cigarettes went into effect, the dema
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Answer:

Explanation:

The U.S. imposes substantial taxes on cigarettes but not on loose tobacco. When the tax on cigarettes went into effect, the demand for home cigarette rolling machines most likely increased, causing the price of cigarette rolling machines to rise and the quantity of machines purchased to rise.

8 0
3 years ago
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Jennifer is trying to decide what combination of music albums and DVDs to buy. She has $45 to spend. DVDs cost $15. Albums cost
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Answer:

The best consumption bundle is (b)

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The best consumption bundle is always the one which satisfies the most.  In the above scenario, Jennifer wants to buy both DVDs and albums. The cost of DVD and album is $15 and $ 7.5 respectively. The best combination is to buy 2 DVDs they will cost her 30$, and with the remaining 15$ she can buy two albums. So, the best combination is 2, 2.

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