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Alex
3 years ago
14

If product Y is an inferior good, a decrease in consumer incomes will rev:

Business
1 answer:
Marat540 [252]3 years ago
4 0

Answer: Option (B) is correct.

Explanation:

Inferior good is a good whose demand is inversely related with the consumers income. This means that if there is an increase in the income of the consumer then as a result demand for normal good increases but demand for inferior goods decreases.

On the other hand, if there is a decrease in the income of the consumer then as a result demand for normal good decreases but demand for inferior goods increases.

Hence, decrease in consumer incomes will increase the demand of product Y and the demand curve for product Y to the right.  

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<u>Sustainable</u>

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7 0
3 years ago
A bond issued by the State of Pennsylvania provides a 5.75% yield. What yield on a Synthetic Chemical Company bond would cause t
sineoko [7]

Answer: 8.85%

Explanation:

GIVEN THE FOLLOWING ;

Municipal bond yield = 5.75%

After-tax rate = 35%

In other to produce the same after tax rate, What should be the yield of the synthetic company bond;

Assume yield on synthetic company bond = SC yield ;

We can connect our assumption using the mathematical relation below;

Municipal bond yield = after tax bond yield

5.75% = SC yield (1 - tax rate)

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3 years ago
The theory of comparative advantage states that:
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Productivity rises more quickly when countries produce goods and services for which they have a natural talent.

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