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2 years ago

If a decrease in income increases the demand for a good. True or False

Business

1 answer:

Masja [62]2 years ago

3 0

Answer:

If a decrease in income increase the demand for a good , the good is an inferior good.

An inferior good is a good whose demand falls when income rises and rises when income falls.

Inferior goods have an indirect relationship with income

A normal good is a good whose demand rises when income increases and falls when income falls.

Normal goods have a direct relationship with income.

A substitute good is a good that can be used in place of another good. For example if good A and B are substitutes, if the price of good A increases, it would become more expensive for consumers and consumers would shift to consuming good B. As a result the demand for good B would rise and the quantity demanded of good A would fall.

Complements are goods that are used together. If the price of one of the goods increases, the demand for the other good falls and vice versa.

For example, gasoline and car are complements. If the price of cars fall, people would increase their demand for cars and as result the demand for gasoline would increase.

I hope my answer helps you

Explanation:

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A business will usually choose to produce a new product inan existing facility if the cost is less that the cost of building a n

coldgirl [10]

Answer:

E) existing factory has enough capacity to handle demand for the new products as well as the existing products.

Explanation:

If the existing factory doesn't have enough capacity to produce both the new product and existing ones, then if doesn't matter if the technology used is the same, or the new product is an extension of an existing product line, or existing human resources possess the abilities and knowledge required, or even if the product design is already complete or not.

If the factory's production capacity cannot handle the new product, then the company needs to expand the existing factory's production capacity or build a new facility.

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2 years ago

Vision Co. manufactures and sells tea, coffee, desserts, shoes, and sporting goods. All of these products are its

Anuta_ua [19.1K]

Answer:

All of these products are its sold under his family brand

Explanation:

In the given question, the Vision co. deals in a variety of products which include tea, coffee, desserts, shoes, and sporting goods.

By sells his company brands, he captures the market area and has created a market position.

And, he promotes his family brand together.

Here, brand means to promote the company goods having a trademark so that the customers attract towards company goods and services by giving them great deals. It is an advertising strategy through which the company can capture its maximum market share.

Hence, All of these products are its sold under his family brand

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2 years ago

Match the career with the education that the job requires.

natita [175]

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2 years ago

Josh is journalizing an adjustment for a bank service fee. What type of

Monica [59]

Answer:

Expense

Explanation:

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2 years ago

The following data were taken from the financial statements of Gates Inc. for the current fiscal year. Property, plant, and equi

Alex Ar [27]

Answer:

Ratio of fixed assets to long-term liabilities = fixed assets / long term liabilities = $971,600 / $694,000 = 1.4

Ratio of liabilities to stockholders' equity = total liabilities / stockholders' equity = $834,000 / $2,780,000 = 0.3

Asset turnover = net sales / average total assets = $21,141,000 / [($3,614,000 + $3,433,000)/2] = 6

Return on total assets = (net income + interest expense) / average total assets = ($386,000 + $41,640) / [($3,614,000 + $3,433,000)/2] = 12.14%

Return on stockholders’ equity = net income / average stockholders' equity = $386,000 / [($2,780,000 + $2,558,000) = 14.46%

Return on common stockholders' equity = net income / average common stockholders' equity = $386,000 / [($1,946,000 + $1,724,000) = 21.04%

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2 years ago